Best Balance Transfers Discussion Area

kenken_2

Allocation of payments for virgin credit card

''If you do not pay your balance in full we will use your payments:

* to reduce lower rate balances before higher rate balances.

If introductory rate balances are the same we will repay them as follows:

* the one which expires first; then
* if expiry dates are the same - the one which started first; then
* if the expiry dates, and start dates are the same - the one with the lowest standard rate.''

from: [FONT=&quot]uk.virginmoney.com[/FONT]

does it mean virgin credit card can be used for purchases in the first three months after balance transferring to it without costing a fortune?

they will pay off the balance at the promotional offer rate which expires first, so I think I can do both purchases and a balance transfer during the first 3 months and pay off the balance for purchases before the end of the first 3 months and there will no any interest for purchases after the end of the first 16 month period.

do you think I am right?

Moggles_2

jenbags1 wrote: »

WOW!!! Well I never knew that! Awesome! Thank you! So, I just have to pay off the catalogues with my partner's card (HSBC), then transfer the balance to my card (Natwest) and pay it off? Sorted! No need for two cards then in my name! Brilliant... easy peasy!! That's absolutely fabulous. You are all very clued up lovely people! :T

I take it you're pleased then.

Very best
M

Moggles_2

kenken wrote: »

Allocation of payments for virgin credit card: does it mean Virgin credit card can be used for purchases in the first three months after balance transferring to it without costing a fortune? They will pay off the balance at the promotional offer rate which expires first, so I think I can do both purchases and a balance transfer during the first 3 months and pay off the balance for purchases before the end of the first 3 months and there will no interest for purchases after the end of the first 16 month period. Do you think I am right?

Yes, for the first 3 months all your repayments would come off purchases first, according to Virgin's current T&C's. Therefore, as long as you cleared your entire retail balance before the 3rd statement date, you wouldn't pay interest on your shopping. In this respect, this card is unusual.

After that though, retail transactions are locked in behind the BT(s). This payment hierarchy, (whereby transactions charged at special promo rates are paid off first), is pretty standard across the cc industry, which is why it's normally best to keep balances charged at different rates over different periods (in this case BTs and purchases) on separate credit cards

jasont1981

0% sounds great but when they hit you with 3% balance transfer fee is worth all the hassle???

NickX

jasont1981 wrote: »

0% sounds great but when they hit you with 3% balance transfer fee is worth all the hassle???

Well if you are transferring a debt that is an SVR (Standard Variable Rate) this can be anything from 8.95 to 34.9%, then YES you will save money.

If however, you have the funds in savings and are trying to stooze for profit, then I agree that with a 3% Balance Transfer Fee you are unlikely to succeed.

Moggles_2

jasont1981 wrote: »

0% sounds great, but when they hit you with 3% balance transfer fee, is it worth all the hassle?

That depends on the rate you're currently charged on your cc borrowings.

If you're paying a 'typical' rate of say 15.9% APR, the monthly rate is around 1.2%. Even forking out a 3% fee means you're in pocket within three months. Obviously the savings can be considerable if you land a market-leading deal, such as Virgin for example

stinky985

Hello a quick question if i may. i have 3 credit cards. £2500 on a Barclaycard (£2k @ 0% but running out in 2 months) and £500 on M&S @ 18.9 (only just noticed APR!).
I have a clear Virgin card with an offer of 6.9% life of balance offer with 2.98% fee. An easy win perhaps as could close 1 and limit the other (and give it to my mum so i only get it in emergencies)
I want to transfer both debt cards onto one and have a dilemma.
My fixed rate mortgage ends in March and i'm hopng the payment will drop quite significantly, even though Standard Life isnt the lowest rate by any stretch of imagination. I am also contemplating selling my house to enable me to clear my debts - also have loan and an overdraft that leaves me nothing-hence the cards! Anyone know of any better deals that i could get, or give any advice on what to do?! i have been a credit card tart but getting really bored of it now! I'm also thinking that if i know a bit of interest is being charged, it may push me on to pay it off abit quicker, but, it may not!
Sorry and TIA

Moggles_2

stinky985 wrote: »

I have 3 credit cards. £2500 on a Barclaycard (£2k @ 0% but running out in 2 months) and £500 on M&S @ 18.9 (only just noticed APR). I have a clear Virgin card with an offer of 6.9% life of balance with 2.98% fee. An easy win perhaps as could close one and limit the other (give it to my mum so I only get it in emergencies) I want to transfer both debt cards onto one and have a dilemma. My fixed rate mortgage ends in March and i'm hoping the payment will drop quite significantly, even though Standard Life isnt the lowest rate by any stretch of imagination. I am also contemplating selling my house to enable me to clear my debts - also have loan and an overdraft that leaves me nothing, hence the cards! Anyone know of any better deals that i could get or give any advice on what to do? I have been a credit card tart but getting really bored of it now...

It sounds as though you're leaning towards the Virgin life-of-balance deal or similar, rather than a 0% BT card. There's a dearth of decent, LoB cards at the mo and credit limits tend to be on the low side. For comparison, the Halifax Easy Rate card (8.9% APR, but no transfer fee) is fairly representative
http://www.halifax.co.uk/creditcards/easyrate.asp

Say you go with Virgin, if one of your CCs is closed down and the remaining card is kept by your mum for emergencies only, what happens if the loan and overdraft leave nothing for food and petrol next month? (Perhaps, you'd class that as an emergency)
Note: if you shift your two cc debts to a LoB deal such as Virgin, you couldn't then fall back on that same card for shopping. (Martin's golden rule: never, ever spend on these cards. If you did, the savings from the transfer would be wiped out.)

I have been a credit card tart, but getting really bored of it now. I'm also thinking that if I know a bit of interest is being charged, it may push me to pay it off abit quicker, but it may not!

Have you estimated how long it would take to clear the debts in full?
Why not plug some numbers into this credit card calculator?
http://www.whatsthecost.com/creditcard.aspx

You can then estimate the time it would take to clear the balance using Virgin compared with Halifax. You can also see the effect of increasing your payments by a few pounds

stinky985

Moggles. Flippin 'eck!! Many thanks indeed for that!! i will check out that info and see the figures for myself to help decide.
Point noted about possibility of no access to emergency funds. i need to dig deeper to ensure that food/petrol is covered. i think it is but will double check. Perhaps i could use 'will be clear' card only for petrol and pay it off in full the following month thereby deferring that cost by a month. Cant go without petrol. Its just an idea and i will figure it out properly! i never spend on a balance transfer card that i have learnt!
Time to re-adjust my budget planner spreadsheet to see whats what!!
Many thanks indeed.
***EDIT- wow that 'whats the cost' website is godd. Its scary when you see it all in front of you. Just what i needed. Boot up the backside gratefully received!***

Moggles_2

stinky985 wrote: »

Moggles. Flippin 'eck!! Many thanks indeed for that!I will check out that info and see the figures for myself to help decide. Point noted about possibility of no access to emergency funds. i need to dig deeper to ensure that food/petrol is covered. i think it is, but will double check. Perhaps i could use 'will be clear' card only for petrol and pay it off in full the following month thereby deferring that cost by a month. Cant go without petrol. Its just an idea and i will figure it out properly! i never spend on a balance transfer card that i have learnt.Time to re-adjust my budget planner spreadsheet to see what's what. Many thanks indeed.

Sounds like a plan

Fingers crossed your mortgage provider obliges in March
Very best, M