Money Transfer query

humey86

I recently took out the Virgin Money CC as mentioned on the subscriber email, 35 Month 0% on Balance Transfers and Im looking at a cash transfer to clear some Paypal Credit and consolidate all on to one card, (especially as the minimum payment is 1%, which helps me get my head above water) Im a little confused about the terms however, I tried speaking to Virgin themselves but got no further. 

The app states the following on my terms for a cash transfer; '0% until your statement date or after 12 Jan 23 with a 4% fee, You'll then move to your standard rate. Offer available until March 2022'

Does this then mean it is a 0% charge on cash transfer?

GZA1981

If you do a money transfer you'll be charged 4% on whatever you borrow e.g.£40 on £1000 borrowed.

You'll then be charged 0% interest on the £1040 until January 2023, just paying the 1% minimum payment or often £25 is the minimum (whichever is highest)

humey86

Is the interest on this charged separately to the CC balance? So 1% of CC balance and 1% of money transfer  per month?

GZA1981

If it's a 0% money transfer there is no interest charged, just the fee when you make the initial money transfer then the minimum payment every month. If you plan on making purchases too the minimum payment is usually a percentage of the whole combined balance.

Normally your statement will have a table split by transaction type e.g. purchases, balance transfer, money transfer showing the interest rate for each and the balance of each.

Payments should be allocated to highest % rate first, if you pay off the purchase balance every month it won't attract any interest.

If you can avoid making purchases on a card with a balance/money transfer it's probably easier to keep track of, keeping it as a dedicated 0% card.

humey86

Thanks for your help. Yes the plan is to just keep this card for such purposes