Virgin - offer of promotional rate, but have existing balance

dexy10

Hi, I've been offered a balance transfer by Virgin (0% until April 2020), but already have a balance on this card with a different promotional rate, which runs until 2021.

If I were to take advantage of this offer, how would this affect my existing balance... I assume at the end of 04/2020 I would start paying interest on any balance from the 2nd transfer not yet paid off, in which case it wouldn't be a great idea to do this?

Thanks in advance for any guidance you can offer...

[Deleted User]

It won't affect your existing balance.

You will start paying interest on either of the promotional balances at the end of the promo period, whether there is one or two.

xebruary

Check the terms and conditions of the card, specifically the order in which they apply payments. They will apply payments to the balance with the highest interest rate first. Thereafter;

If they apply payments to balances at the same rate to the balance whose promotional rate expires first (my experience has been that most do this):
If you have balances from both after April 2020, the new transfer will incur interest but new payments you make will be applied to it until it is paid off, and then applied to the original balance

If they apply payments to balances at the same rate to the balance which was transferred first (MBNA seem to do this now):
If you have balances from both after April 2020, the new transfer will incur interest until you have paid off both the original promotional balance and the transfer

Neither situation affects the balance or interest on the original promotion.

I assumed in the above that the original promotion is at 0% and you make no interest-bearing transactions after making the transfer.

April 2020 does give you a year to think about how to not be in this situation by increasing payments or decreasing spending if necessary. And even if you do have to pay interest on the remaining balance you may still pay less by making the transfer depending on what you are paying now.