Best Balance Transfers Discussion Area

YorkshireBoy

GeCon wrote: »

Would I be charged interest on the BT fee on a Virgin CC?

Yes, but it'll be charged at the rate applicable to the relevant transaction...so 0% in the intro period.

https://wwwa.applyonlinenow.com/UKCCapp/Ctl/link?eid=EF3C6FB7
(See condition 2d)

If your Virgin (S)BT is more than £4,570 first minimum payment is the BT fee + £5.

If it's less than £4,570 then the first minimum payment is 3% of the balance (balance is is the amount BT'd + the BT fee).

Subsequent minimum payments are £25 per month.

Gnome

Hi all.

First post here, with just a quick and easy question ( I hope!).
I've just taken out an MBNA rewards card, for obviously the rewards bit, but also because of the 0% on balance transfers.

I only had under £300 on my Cahoot card which I transferred, and I will be paying that off by the end of next month ( on the MBNA card now it's transferred).

My question is probably a bit dim ( but just for my own clarification!), I presume once I've paid that off, there is no need to worry about spending anything else on that card?
I know Martin mentions, never ever, ever, spend on a balance transfer card with 0%, when you've transferred a balance over, due to any re-payments you make going towards what you've just spent, rather than the transferred balances.
Surely if I re-pay the initial amount to cover the transferred balance, then it'll be ok to use it for whatever I want after that?

Thanks for reading!

Johnathan

GeCon

King_Weasel wrote: »

No, so long as you pay the minimum balance in time. What Virgin normally do is charge the fee in full on the first payment (plus £5), but then only charge £5 pm thereafter.

YorkshireBoy wrote: »

Yes, but it'll be charged at the rate applicable to the relevant transaction...so 0% in the intro period.

https://wwwa.applyonlinenow.com/UKCCapp/Ctl/link?eid=EF3C6FB7
(See condition 2d)

If your Virgin (S)BT is more than £4,570 first minimum payment is the BT fee + £5.

If it's less than £4,570 then the first minimum payment is 3% of the balance (balance is is the amount BT'd + the BT fee).

Subsequent minimum payments are £25 per month.

The link doesn't seem to be working atm. Sorry if that sounds stupid, but where does the £5 come from? I am planning to pay off more than the minimum per month.

If I BT'ed let's say £4000, would I not just have to pay £4000 plus the BT fee back providing I always pay back on time?

YorkshireBoy

Gnome wrote: »

I know Martin mentions, never ever, ever, spend on a balance transfer card with 0%, when you've transferred a balance over, due to any re-payments you make going towards what you've just spent, rather than the transferred balances.

It's t'other way round. Your payments will go towards the 0% BT, leaving your purchases attracting the standard rate of interest.

Surely if I re-pay the initial amount to cover the transferred balance, then it'll be ok to use it for whatever I want after that?

If you intend (seriously intend!) to clear the transferred balance within 3 months, you can use the card for purchases straight away since this particular card also has 0% on purchases for 3 months.

YorkshireBoy

GeCon wrote: »

The link doesn't seem to be working atm.

It's a dynamic link I believe. If you click 'apply' the T&C's can be accessed at the top of the first page.

Sorry if that sounds stupid, but where does the £5 come from? I am planning to pay off more than the minimum per month.

Read the T&C's or summary box. It's detailed in the minimum payment section(s).

If I BT'ed let's say £4000, would I not just have to pay £4000 plus the BT fee back providing I always pay back on time?

Yes, in total. I'm describing the minimum payments you have to make. You can pay more than the minimum, but unless you're seriously lacking in discipline it doesn't make sense...you may as well save the rest in a dedicated high interest savings account and pay it off the card just before the end of the introductory period.

King_Weasel

Seems to be a slight conflict in info here between YorkshireBoy and me on the minimum payment. I understood it to be £5, which is what I was charged not so long ago and what I posted above, but YB says £25. Either way, you must of course pay the minimum and then clear the balance in full at the end of the interest-free period. As he says, little point in paying off more during the period - unless, maybe, you can't discipline yourself not to spend the savings, in which case regular, constant payments that clear the account by the end of the interest-free period make sense.

YorkshireBoy

King_Weasel wrote: »

Seems to be a slight conflict in info here between YorkshireBoy and me on the minimum payment.

I'm assuming this is a new application, and the £25 figure is from the current T&C's. Long time cardholders (myself included, and it seems you too?) are still on the old £5 condition.

JimmyTheWig

Gnome wrote: »

My question is probably a bit dim ( but just for my own clarification!), I presume once I've paid that off, there is no need to worry about spending anything else on that card?
I know Martin mentions, never ever, ever, spend on a balance transfer card with 0%, when you've transferred a balance over...
Surely if I re-pay the initial amount to cover the transferred balance, then it'll be ok to use it for whatever I want after that?

YrokshireBoy's reply about paying off the balance in 3 months is probably more relevant for you, but in the general case you are just about right.

The golden rule is never spend on a card that you've done a balance transfer on whilst the balance thransfer is outstanding. Once you've cleared the balance transfer then there's no reason not to spend on it if that's what works for you.

One thing, though, is it is probably best to wait for your statement to come through showing the balance as cleared in case there is any residual interest after paying it off (i.e. interest charged between prior statement date and payment in full).

richard08

Hi. this is my first post here. I have £5k on an MBNA card at 0% which expires in mid-June. I'm looking to transfer the whole lot to one card if possible.

At the moment, I'm looking at the Halifax card which offers 0% for 13 months but charges a fee. There's also the six month no fee cards from Abbey and Capital One.

any thoughts as to which is most likely to allow me to transfer the full £5k?

I have an excellent credit history (as far as I am aware!)

thanks

JimmyTheWig

richard08 wrote: »

any thoughts as to which is most likely to allow me to transfer the full £5k?

I have an excellent credit history (as far as I am aware!)

I got a very generous credit limit from Abbey recently. But my sister later applied to them and got a pathetic limit.
Others on this forum have said that MBNA give generous limits, but if you've already got a balance on one of their cards then you might not do so well with another application.