0% promotional interest rate ending

rmc86uk

Hi everyone
I've had a Virgin credit card for about 2.5 years 0% interest on purchases. I'm due a refund shortly of just over £100 which will zero the balance.

The 0% promotion ends at the end of August and then goes to 20%. I need to make a purchase this week of £800 on the credit card. Does this mean that if I don't pay off the £800 by end of August I will then be paying 20% interest? 

What will my best options be to keep costs down? I was thinking of getting a new credit card on 0% but don't think it will come in time as I have to make this purchase this week.

I usually pay off £100 a month on my balances but it's only giving me three months to pay the whole amount off until the rate shoots up.

Many thanks in advance

[Deleted User]

You'll incur daily interest on the balance at the applicable rate for that transaction.

Your best option depends on how long it will take you to clear the balance and any other cards you have.

rmc86uk

Thanks for the reply. I don't have any other credit cards, this is my only card. As above I usually pay off £100 a month when I have a balance.

[Deleted User]

Calculate the interest you'll pay over the term and and see if it's worth applying for a BT card to shift the balance.

rmc86uk

Ok just had a look and it comes out around £100 over 8 months. Will the interest only be on the balance that is left over or the full amount of £800 as I will have paid a couple of hundred off by time the 0% ends.

[Deleted User]

Interest is calculated daily. So the balance on any given day at the interest rate for that day.

rmc86uk

Ok pretty much answers my question. Will take a close look at the time 0% ends and see how much my balance is. Thanks 👍

rmc86uk

Currently looking at my options. I am looking for a new credit card that will allow me to transfer a balance and also preferably 0% on purchases. I have found one using MSE credit card guide but it is confusing me. MBNA card says 2.5% fee for 20 months and 0% on purchases upto 20 months. The bit confusing me says "On purchases made within 60 days of account opening". What does that mean exactly? Do I still get 0% on every purchase upto the 20 months or only on purchases in the first 60 days? 

Thanks in advance

cymruchris

rmc86uk said:

Currently looking at my options. I am looking for a new credit card that will allow me to transfer a balance and also preferably 0% on purchases. I have found one using MSE credit card guide but it is confusing me. MBNA card says 2.5% fee for 20 months and 0% on purchases upto 20 months. The bit confusing me says "On purchases made within 60 days of account opening". What does that mean exactly? Do I still get 0% on every purchase upto the 20 months or only on purchases in the first 60 days? 

Thanks in advance

Only the purchases made in the first 60 days - so suitable for someone who is about to make a big purchase. Not suitable for someone that wants to make regular spends every month. 

rmc86uk

Thanks for the reply. This might be the case as I need to possibly make a big purchase (£700) in the next couple of weeks but the 0% ends on my current credit card end of August. This is why I'm looking at a new card where I can makes purchases at 0% and transfer my current balance to the new card. If I was to get a new credit card for spending is there usually an average balance transfer rate amongst most lenders? Or do not all cards let you balance transfer straight away?

Thanks

rmc86uk

Update. I've managed to find one that suits my needs. Thanks for your help.