Virgin credit card

Moneymatters2022

Hi All.

I’m new here but looking for some advice after exhausting all other options.

I was in quite a bad state at the start of this year with debts however I’ve managed to clear 75% of them after hunkering down and paying off circa £11000.

Im now left with two credit cards, one totals £3500 with Virgin and another of £800 with MBNA.

As I missed a payment last year with Virgin, they have removed my 0% interest rate promo, after several talks and emails they will not help me long term and have only given me a 1month interest free period. Beyond payment plans and financial ombudsman, can anyone help with ideas? The interest rate is 21% on £3500 so it’s circa £70 a month plus my min payment. They have also emailed me to say I’m in “persistent debt” which is quite rich considering they will not lower my rate or be willing to help me.

I also can’t take a new CC or loan at the moment as my credit history is still in “recovery mode” should I say. 

Thank you.  

[Deleted User]

The FOS will not force them to re-instate the 0% rate if you legitimately broke the terms and likely you would be waiting a long time in the queue anyway. Did you pay by direct debit and that wasn't taken or were you making manual payments and forgot? Lenders are often flexible if you are genuinely apologetic and made the payment say next day but a completely missed payment you can't do much about. Are you sure you can't get another card e.g. a 6-9 month one for bad credit like Capital One? Even that would give you breathing space

TheLabFather

What’s the limit on your MBNA card? Are they offering any balance transfers at the moment?

Brie

MBNA often seem to have a 0% deal of some sort so you might want to consider that as an option even if it doesn't completely clear the other card.  Better to be paying 21% on £1k rather than £3.5k.  But do ensure you have the DD set up to pay the minimum on the card to enable you to keep the rate.

Don't worry specifically about the persistent debt letters.  They have to send you those and the worst they might do is cut your credit limit as you pay things off.

Moneymatters2022

It doesn’t seem like I can get any other card at the moment, perhaps I need to wait a few more months. My MBNA limit was lowered from £2500 to £800 after I paid a chunk it off.

Seems like my options are limited unless I ask my spouse to take some on if her credit limit is better?

I pay manually and missed it so it’s definitely lost now. 

TheLabFather

Don’t bother fighting with Virgin as they are impossible to deal with.

You have cut your debt quite considerably- just keep going, it’s a pain to see the interest rate but have that mindset you will soon be shot of them.

Your credit record will recover. Set up a DD on each just go take the min amount and pay the extra manually. I was in same boat a few years back and took a few years to recover. 

I have a Virgin card and too be honest I am getting rid of soon as. If anything goes wrong you have no chance of speaking to them on phone.

Good luck 👍

MrFrugalFever

Try checking the fluid card eligibility directly on their website, 9 months 0% BT I believe, as mentioned above, CAP1 are also up to 6 months 0%, again check on their own website.

I’d clear MBNA asap and then concentrate on Virgin throwing everything at it if can’t BT out of it.

Moneymatters2022

I will definitely setup a DD going forward and aim to pay as much as possible across both CC’s. Seems like I’m going to have to pay my way out! I’ve checked with fluid and can’t get anything their either. 

[Deleted User]

Moneymatters2022 said:

It doesn’t seem like I can get any other card at the moment, perhaps I need to wait a few more months. My MBNA limit was lowered from £2500 to £800 after I paid a chunk it off.

Seems like my options are limited unless I ask my spouse to take some on if her credit limit is better?

I pay manually and missed it so it’s definitely lost now. 

Did you actually check this or just going on what something like MSE says? It'd be worth a single application for a low rating credit account just to see, worst they say no

Moneymatters2022

I’ve tried a few eligibility checkers and all have come back as declined 

Chrysalis

What got my attention is that MBNA reduced your limit after you reduced your debt with them, that suggests they spotted something that considers you high risk.

The limit reduction from MBNA wouldnt have helped either as it increases your utilisation level.

If you cant get a 0% card or a low interest rate loan, then you going to have to throw money at it.  Which I know isnt what you want to hear.