0% Virgin Credit Card Offer Question

xlnc99

Got accepted for a 18 or 26 month (cant remember which) 0% interest balance transfer. First ever 0% ive had.

Question is - how much will the monthly repayments be (assuming its the minuum) for £4000 on the card?

[Deleted User]

Always read your terms before applying or accepting a card in case it doesn't suit you.

https://uk.virginmoney.com/virgin/service/credit-card/articles/credit-card-minimum-payments-am-i-paying-enough.jsp

How is the minimum payment calculated?

There’s a legal commitment to charge a minimum of 1% of the outstanding balance plus any interest every month. Lenders also impose a fixed minimum fee, for example £5, for when the balance is low.

Each month you must pay at least the minimum payment in pounds sterling as shown on your statement.

This will be the greater of:

• £25, or your whole balance shown if it is less, or
• the interest, any default charges and annual card fee, plus 1% of the remaining balance.
• the amount we tell you under section 9.2 of your terms.

The minimum payment must reach your account by the payment date shown on your statement.

cymruchris

xlnc99 said:

Got accepted for a 18 or 26 month (cant remember which) 0% interest balance transfer. First ever 0% ive had.

Question is - how much will the monthly repayments be (assuming its the minuum) for £4000 on the card?

Even though your electoral roll info is missing?

My balance gets paid in full each month - so this months statement is just over £80 - and if I only paid the minimum payment - it's £25.  I’ve taken a screen shot so you can see below - if I made the minimum payment - what it would be. 

On your £4k it'll be 1 percent - so £40 - for the duration of your promo period, which of course should drop as you begin to pay off the capital resulting in a zero balance at the end of the promo term? You wouldn't want to get to the end of the promo and still be owing the full £4k would you?

dr_adidas01

xlnc99 said:

Got accepted for a 18 or 26 month (cant remember which) 0% interest balance transfer. First ever 0% ive had.

Question is - how much will the monthly repayments be (assuming its the minuum) for £4000 on the card?

The moral here is to read and make a note of what you have been offered that way you should know if it’s 18 or 26 months and also what the repayment percentage will be. 

xlnc99

Thanks guys - a simple error on my part in forgetting the duration of the 0 percent balance transfer. However, i know it was above 16 months so anything else is a bonus. So around £40 per month is pretty good for a £4k limit for the minimum amount? 

Thanks

xlnc99

cymruchris said:

xlnc99 said:

Got accepted for a 18 or 26 month (cant remember which) 0% interest balance transfer. First ever 0% ive had.

Question is - how much will the monthly repayments be (assuming its the minuum) for £4000 on the card?

Even though your electoral roll info is missing?

My balance gets paid in full each month - so this months statement is just over £80 - and if I only paid the minimum payment - it's £25.  I’ve taken a screen shot so you can see below - if I made the minimum payment - what it would be. 

On your £4k it'll be 1 percent - so £40 - for the duration of your promo period, which of course should drop as you begin to pay off the capital resulting in a zero balance at the end of the promo term? You wouldn't want to get to the end of the promo and still be owing the full £4k would you?

I wouldnt be paying 4k at the end of the promo offer. It would be 4k minus all the monthly payments up to that date. However, i plan to clear it before 16 months at some point.

xlnc99

Deleted_User said:

Always read your terms before applying or accepting a card in case it doesn't suit you.

https://uk.virginmoney.com/virgin/service/credit-card/articles/credit-card-minimum-payments-am-i-paying-enough.jsp

How is the minimum payment calculated?

There’s a legal commitment to charge a minimum of 1% of the outstanding balance plus any interest every month. Lenders also impose a fixed minimum fee, for example £5, for when the balance is low.

Each month you must pay at least the minimum payment in pounds sterling as shown on your statement.

This will be the greater of:

• £25, or your whole balance shown if it is less, or
• the interest, any default charges and annual card fee, plus 1% of the remaining balance.
• the amount we tell you under section 9.2 of your terms.

The minimum payment must reach your account by the payment date shown on your statement.

Yes i read the promo terms for the 0 percent balance duration. I just didnt read the min payment terms, i assume it would be the same or similar for all CC with 0% promotional offers

MalMonroe

I got one of these last year and have had no trouble whatsoever. If the minimum payment you set is too low you don't have to worry because they will let you know. This is on my details "if the fixed amount you asked us to collect by Direct Debit is less than your minimum payment we will increase your Direct Debit payment to cover this. Please also note we will still collect your Direct Debit even if you make additional payments."

I transferred £3k and they set my minimum payment at £25 pcm. I pay more than that though because I want to clear the balance before the 0% deal runs out.

 As long as you set up a regular payment via direct debit (I had to do that before I was accepted anyway) you will be fine. 

There's a help section on their website - although of course they'll be operating via app after 31 Jan 2021.

Hope that helps.

xlnc99

MalMonroe said:

I got one of these last year and have had no trouble whatsoever. If the minimum payment you set is too low you don't have to worry because they will let you know. This is on my details "if the fixed amount you asked us to collect by Direct Debit is less than your minimum payment we will increase your Direct Debit payment to cover this. Please also note we will still collect your Direct Debit even if you make additional payments."

I transferred £3k and they set my minimum payment at £25 pcm. I pay more than that though because I want to clear the balance before the 0% deal runs out.

 As long as you set up a regular payment via direct debit (I had to do that before I was accepted anyway) you will be fine. 

There's a help section on their website - although of course they'll be operating via app after 31 Jan 2021.

Hope that helps.

Brilliant, thanks. So just set the DD to min amount it will usually work out around 1% and if you set a fix amount too low then they will automatically just take the min amount automatically through DD. That works out well.