Virgin Money - maximising the stooz

Mutton_Geoff

I've just discovered a "loophole" in the Virgin Money stooz that may help others. The policy with VM is you can stooz BT up to 95% of your credit limit but that limit includes the 3% BT fee. Their payment policy is also that your first payment is all of the BT fee plus £5 (or £25 I believe it is with new accounts).

As soon as your first monthly payment is made, you're still in the 0% BT period so you can BT back the 3% that you just paid off (albeit with another 3% fee) but you're able to maximise the amount stoozed on the Virgin Money card. Here are example figures:

Credit Limit £20k - stooz £18,400 plus 2.98% BT fee = £18,948 owed
First monthly payment = £548 BT fee plus £5 min = £553 paid
2nd statement = £18,948 - £553 = £18,395
This leaves £605 "headroom" to the max BT amount of 95% (inc fees)
Do second BT of £580 plus 3% BT fee = £597.40
3rd statement = £18,992.40 min payment £17.40 BT fee plus £5 = £22
Balance = £18,972 with future min payments of £5.

This method means you can squeeze almost the full 95% allowable BT % without having 3% of it eroded by the high first months payment.

CannyJock

Mutton_Geoff wrote: »

I've just discovered a "loophole" in the Virgin Money stooz that may help others. The policy with VM is you can stooz BT up to 95% of your credit limit but that limit includes the 3% BT fee. Their payment policy is also that your first payment is all of the BT fee plus £5 (or £25 I believe it is with new accounts).

As soon as your first monthly payment is made, you're still in the 0% BT period so you can BT back the 3% that you just paid off (albeit with another 3% fee) but you're able to maximise the amount stoozed on the Virgin Money card. Here are example figures:

Credit Limit £20k - stooz £18,400 plus 2.98% BT fee = £18,948 owed
First monthly payment = £548 BT fee plus £5 min = £553 paid
2nd statement = £18,948 - £553 = £18,395
This leaves £605 "headroom" to the max BT amount of 95% (inc fees)
Do second BT of £580 plus 3% BT fee = £597.40
3rd statement = £18,992.40 min payment £17.40 BT fee plus £5 = £22
Balance = £18,972 with future min payments of £5.

This method means you can squeeze almost the full 95% allowable BT % without having 3% of it eroded by the high first months payment.

Only thing with this is that return gets less each month, ie. 2.98% for 15 months, then 14 months etc etc - think when I looked at it was about 7 or 8 months in when it became unprofitable and in the later months you're only just breaking even once you take transfer dates into the equation.

kingkano

While its 3% isnt there also a minimum?? (the numbers 25 and 75 stick in my head - could be a 25 minimum). So maybe okay for those with a very high limit.

Mutton_Geoff

I only intend to do this for the first month to regain the 3% of the BT credit limit. Doing it again to get back 3% of 3% simply not worth it but adding another £580 to the pot for 14 months that wasn't available at initial BT is worth doing.