Additional Balance Transfer

Jasonh2015

Hi all, how do additional balance transfer work? I’ve got one for 24 months with Virgin expires in April 22. They offered me an additional one that would expire July 21. How do the funds I pay get distributed? I could pay with no issues, but didn’t want to be paying interest once it expires. I know I should call them just thankfully busy at work 🤓

[Deleted User]

Your payments will be allocated according to the terms of the card.  Where you have more than one balance at the same rate, you need to check which it will go to.

MallyGirl

It will be in the T&Cs. It usually goes to the one incurring most interest but I have seen examples where it gets assigned to the longest running deal and also to the earliest expiring deal. You need to look at the specifics of your deal so you don't get caught out.

Jasonh2015

Thanks, I best call them, it’s 0% right now 😊

D3xt3r5L4b

Do you have another credit card you need to
transfer a balance from?

Jasonh2015

That’s the idea. I’m going to call them later to check how the additional transfer would work. No point arranging it if the original one is deducted first and the 2nd 0% runs out only to pay interest. 

Jasonh2015

So I checked it with Virgin, the funds paid would go towards the 0% expiring first, so the July 21, so nothing would be paid on the April 22 until the other one is clear. So I’d be losing a year on my interest free period if I take out the additional transfer ! It looks good, but really it’s not. 

[Deleted User]

It's much better than the other way round.

You don't lose any of your interest free period and you maximise the time the debt is at 0%. And if you get the earlier one cleared before the promo expires, you don't need to worry about another BT.

Jasonh2015

I’m ok as I am, but it would have been a little convenient to transfer. But I pay over the amount due so it’s paid 2 months before the 0% ends. The cynic in me says that’s why I’m being offered the transfer. 

[Deleted User]

I think the cynic in you has go the wrong end of the stick.

If they put your payments to the later ending promo, your other balance would roll onto your standard rate and they'd start making some money out of you.  This way, they don't.