Virgin Money money transfer offer - did I miss something?

MasterplanC

Hi, 

I have recently got a credit card with Virgin Money that gives 0% on purchases until May 2024 and used only a small part of my credit limit there. They now offered me 0% balance or money transfer until Feb 2025 with a 2.5% fee, which is way better than the introductory offer (3% on balance transfer, 4 % on money transfer). The minimum monthly payment is 1% of the balance and obviously I'll pay that.

Do I understand correctly that I'd have to clear the purchase balance by May 2024, but the money transfer only in Feb 2025? Will my monthly payments automatically clear the earlier-deadline purchase part?

I'll become a higher rate taxpayer this year and since my running high-interest savers already max out my savings allowance, my plan would be to take the ~5k money transfer that fits my limit and stooze it in my Cash ISA paying 4.2%. (It's an easy access one but I'm already subscribed for this year and don't want to transfer the full balance to a fixed rate.) Is there something I have missed?

Thanks

Brie

It's a lure....but you're right in your thinking.

So step one - set up a DD to pay the minimum each month (or a set amount if you prefer but that will mean the minimum will be paid if more than the set amount).

Do you purchases, do your BT/MT if you like.  

step two is to watch when the actual date in May 2024 approaches so you time paying off the purchases according to their T&Cs so that you pay no interest.  Best to get it in writing somewhere (screen shot of chat or whatever) where they tell you how much you need to pay by what date to ensure you don't pay interest.  Follow their advice to the letter.  If you then get charged anything (because sometimes people get it wrong) you can go back to them and say "But Bob said on this day at this time that blah blah blah" and give them copy of the proof and they should pay the interest back.  

step 3 once the 0% on purchases period finishes do NOT use the card for any more purchases as you will be charged interest from date of purchase which will prove costly.

MasterplanC

That's great advice, thank you. I've already got a DD set up, so should be all good on that front. I'll probably switch my spending to another 0% purchase credit card once I did the money transfer.

nic_c

You can do the MT in app and it shows the fee etc - I did it a few months ago. It then shows the amount at the preferential rate (i.e. 0%) on the back of each statement. If you have a balance before doing MT, ensure that this is paid off before next statement date (if your DD doesn't cover it) as otherwise what's left will attract interest. Also if you have had DD set up to pay full balance it will need amending to either minimum or a fixed amount.

MasterplanC

I did the MT a few days ago. In the app it now shows two items „promotional purchases“ and „promotional transfers“. Based on this I‘d think I don‘t pay any interest on the purchase part before that deal expires (somewhen in May 2024). Are you saying that is not the case? I couldn‘t see a statement like this anywhere in the conditions.

MorningcoffeeIV

You pay interest on ALL balances if not clearing in full each month.

But if all your interest rates are at 0%, then the total interest will add up to £0.  

If there is any balance which is >0%, then the total interest will be >£0.

MasterplanC

Thank you, that‘s worded much clearer :-)