Technical Q - Virgin Credit Card

Phil

Ok, so i applied for a Virgin credit card when Martin tipped us off in his email and have now received it with a £10k credit limit and also some cheques.

now it's time to stooze.

my question is this:

There is a 3% fee so i assume i can't write a £10kCheque or can i? Surely i have to figure out what x is in x + 3% of x = £10k



phil

Clariman

The maximum that MBNA will let you Balance Transfer (or write a cheque for) is 95% of your credit limit anyway, so that will leave room for the BT fee i.e. you will be able to write a cheque for £9500 and will pay the £300 fee.

Clariman

Phil

Clariman wrote: »

The maximum that MBNA will let you Balance Transfer (or write a cheque for) is 95% of your credit limit anyway, so that will leave room for the BT fee i.e. you will be able to write a cheque for £9500 and will pay the £300 fee.

Clariman

Aha. Glad I asked now!

Thanks very much Clariman.

**pramaholic**

Hi

I think you will find that they only charge up to £50 for a balance transfer.

Good luck.

Clariman

**pramaholic** wrote: »

Hi

I think you will find that they only charge up to £50 for a balance transfer.

Good luck.

Not necessarily. It depends which card. The Virgin Atlantic Amex card (MBNA) has a capped fee of £50 but only gives 6 months at 0%. The Virgin Money card (MBNA) has an uncapped fee of 2.98% but gives up to 15 months at 0%.

Clariman

argybargy_2

Clariman wrote: »

The maximum that MBNA will let you Balance Transfer (or write a cheque for) is 95% of your credit limit anyway, so that will leave room for the BT fee i.e. you will be able to write a cheque for £9500 and will pay the £300 fee.

Clariman

Can I ask where you got this info from Clariman?

I've trawled through the T&Cs for the Virgin Card and can't see any reference to a max of 95% for BT/Cheque.

I say this with a slight note of concern as I've just (this morning) paid a cheque into my offset mortgage account by doing the exact calculation mentioned by Phil in the first post!

Phil: I have same CL and have just written cheque for £9708, although I'm not sure about this 95% !

G

YorkshireBoy

argybargy wrote: »

Can I ask where you got this info from Clariman?

Regarding BT's, from my secure online area BT screen...

*Your available credit amount may not include your recent purchases, advances or transfers. When deciding on your transfer amount, be sure to keep your balance within 95% of your credit limit by taking into account such transactions and also any applicable fees and interest which may be added before your next statement date.

Also, if you action a BT on the telephone the CSA won't (normally, because I was once allowed to BT 98% of my limit on a fee-free deal) let you exceed the 95% figure...even for a fee-free deal.

Regarding the cheques, if there's no 95% wording on the paperwork accompanying the cheques, and nothing in the T&C's, then I can't see a problem with maxing it out.

At the end of the day though, why are people using cheques when SBT's are possible with much less effort?

Keflavik

Hi All,

I'm a little confused. Are there two fees involved by doing this?

Pay a 2.98% fee when you transfer a balance from another card
and pay a 2.98% fee again when you write a cheque to transfer
the funds to a high interest account.

knights

Hi, recently BT'd my CL. Was allowed 95% of the CL less 2.98% fee. For example 10k CL x 95% = £ 9500.00 less 2.98% = £ 9217.00.

regards

Dagobert

Hello,
I applied for the card and BTd 95%. On my statement, a 2.98% has been added. The min. payment is 3% of the new balance.

Do I need to pay off the BT fee as well as the min. payment to avoid interest charges? And if so, by what date does the BT fee have to be paid off?

As I understand it, the additional payment will not affect the DD.

YorkshireBoy

Dagobert wrote: »

Do I need to pay off the BT fee as well as the min. payment to avoid interest charges? And if so, by what date does the BT fee have to be paid off?

Hello Dagobert,

You're making it sound more complicated than it actually is.

All you need to do is make the required minimum payment by the required payment due date.

Don't worry about the fee...it's already taken care of in their minimum payment calculation (3% more than covers the 2.98% fee).

As I understand it, the additional payment will not affect the DD.

Hang on!!!

If you have a minimum payment DD set up, and your first statement confirms this, then you don't need to make any additional payments at all. The DD will collect your 3% minimum payment.

Clear?