Minimum payment on Virgin card?

blahdog

Hi all,

Firstly, apologies for yet another Virgin post (think this makes 4 on the board at the minute!)...

Secondly, can anyone please confirm the minimum payment on this card? I've just been told that the maximum I'll pay is 3% and although that's fine, I thought it was a fiver....

Is there a standard rate of minimum payment? I realise £5 will fit into the 3% maximum thing but a bit of clarity would be nice! If I'm transferring over £6.5k then there's a £200 discrepancy in the minimum payment!

Cheers all...

dylanuk

Hi,

The minimum monthly repayment on a Virgin credit card is 3% - I believe the £5 you've been told is the "minimum" minimum - e.g. if your balance is £5 or less - than you'll repay all of it - not 3%.

However, from my info, I thought the minimum minimum repayment on a Virgin credit card was now £25. But that's by the by really...

3% is a very standard repayment rate, it generally ranges from 2% to 5%, with 2.5% and 3% being the most popular rates.

So 3% of £6500 is £195 (they may take the transfer fee into account though so it might be a bit more than this).

Hope this helps,

YorkshireBoy

blahdog wrote: »

Firstly, apologies for yet another Virgin post (think this makes 4 on the board at the minute!)...

...and some of them actually answer your question!

We really need to make the calculation a sticky, because it gets asked so many times...

The Virgin minimum payment is

EITHER

3% of your balance

OR

the total of PPI + fees + interest + £5

provided it will always be at least £25 (unless your balance is less than £25 of course, in which case it will be your balance).

So, using your example...

BT = £6,500
BT fee = £193.70
Balance = £6,693.70


First minimum payment:

Option 1: 3% of £6693.70 = £200.81

OR

Option 2: £0 + £193.70 + £0 + £5 = £198.70

Second minimum payment:

Option 1: 3% of £6495.00 = £194.85

OR

Option 2: £0 + £0 + £0 + £5 = £5...but remember, it must always be at least £25.00

MABLE

I have a bt on Virgin for £8800 and pay £25.00 per month.

blahdog

YorkshireBoy wrote: »

...and some of them actually answer your question!

Sorry about that - I thought I'd had a good look but obviously missed the right one!

Thanks a lot YB and others - really grateful for your help! :beer:

paolo

I've been swapping money in out of Virgin for a few years now and I've always paid £5 a month as a minimum. Thats on balances around the £6000 mark

gt94sss2

YorkshireBoy wrote: »

the total of PPI + fees + interest + £5

provided it will always be at least £25 (unless your balance is less than £25 of course, in which case it will be your balance).

I don't think the minimum payment has been increased to £25 for all Virgin customers -certainly I am currently still paying £5/month on a 0% BT deal.

Regards
Sunil

YorkshireBoy

gt94sss2 wrote: »

I don't think the minimum payment has been increased to £25 for all Virgin customers -certainly I am currently still paying £5/month on a 0% BT deal.

I'm also on the old £5/month conditions Sunil.

I assumed, rightly or wrongly, the OP was a new customer/considering applying for the product, because he was asking the question.

jeanmd

I get the feeling that virgin/MBNA are doing this slowly.

We've never had to phone up before, always paid more then minimum, never had a late payment and never up to our credit limit.

We've just got the abbey credit card with a decent credit limit (using the interest free/money back offer) so our credit rating is still good.

Yet virgin tried to increase interest to 29.9%

I must admit we'd not taken much notice of the minimum payment because we always pay more. Looking at it the minimum payment now it was less then 2% so would have taken forever to pay off if we had just paid the minimum.:eek:

Timmne

But the idea is you just pay the minimum and save the rest in a savings account - if you could get away with paying £5 per month as opposed to £195 then you'd be saving £190 per month or £2,850 over 15 months (per Virgin's current offer)...

Nice bit of interest earned then

molley

I have a Virgin card and was able to pay a minimum of £5 but having done a balance transfer to a 0% card I only have a balance of less than £200 and received a letter this morning changing the minimum payment to £25 . Is this what Virgin usually do when you transfer all or most of your balance ?