Just Starting out

stain3565

I have just applied for a Virgin card online and am awaiting the paperwork through the post.

I am already wondering whether I have made a mistake but think I am ok. Can someone confirm this?

The form asked if I wanted to balance transfer from another card. As I have no outstanding debts, I said no.

I am assuming this does not affect my transfer of the credit limit to my bank when all goes through?

Also, as some cards you need to ask for the transfer on application, do I ask for my transfer on this card when I sign and return the application form, or can I wait for the card to arrive? I know there seems to be no charge on Virgin but I am new to this.

As for other cards where there is a standard charge for balance transfers (such as Abbey - 2%), Martin says that this will be waived if you ask for the transfer to your bank on application. Does this mean I should apply by phone (rather than online) and ask at this point, and how do I know that the charge will be waived?

Cheers

Mark

tinalives

Hiya Mark,

I've just done exactly the same as you and also wondered if I've done the right thing!

YorkshireBoy

How I did it...

1. Apply by telephone, and check there is no BT fee.

2. 2 days later ring up to find out credit limit. Not enough given so asked them to double it. Passed to manual underwriter who agrees there and then to double it. I ask to set up my SBT, and check there is no fee.

3. Credit agreement arrives but has original low limit on it. Ignore it.

4. Second credit agreement arrives - I sign and return.

5. Card & PIN arrive, and I phone to activate - again checking there is no BT fee. Whilst on the phone, I...

....(a) choose my own statement date so that payment due date coincides with my salary payment (a bit irrelevant for a fiver but a good habit to get into all the same!)
....(b) set up my DD for minimum payment
....(c) confirm EXACT 0% expiry date
....(d) ensure they KNOW that I don't require PPI or other insurances
....(e) take & record name (and surname), ext. no, date, and time.
....(f) check SBT is on it's way.

To summarise, 12 working days from initial telephone application to BT cash arriving in my current account. A further 3 working days later, BT cash sat in my stooze pot making 4% net.

How much easier can it get?

stain3565

Well explained.

When I get to the end of the first card, and transfer the debt to the second SBT card, is it possible to set up another SBT to the bank if the card limit is greater than the debt transferred. For example, the debt transferred is £1495 and the second card credit limit is £2000. Can I also set up an SBT for £505 to increase the pot?

And one other thing, when asking for the bank transfer, how exactly do you phrase this? SBT is a made up phrase so is it simply a "balance transfer of the full credit limit to my bank"?

YorkshireBoy

stain3565 wrote:

When I get to the end of the first card, and transfer the debt to the second SBT card, is it possible to set up another SBT to the bank if the card limit is greater than the debt transferred. For example, the debt transferred is £1495 and the second card credit limit is £2000. Can I also set up an SBT for £505 to increase the pot?

The second card is not necessarily an SBT card. You just need a BT card, ie one that does 0% for balance transfers. It doesn't need to be 0% for purchases as well but if it is, and you're happy to mix BT's and purchases (I'm not) on the same card, then that's OK. Sometimes though, you are offered 0% for 9 months on BT's but only 3 months 0% on purchases (eg Cap One). This is designed to catch you out, so unless you have the same duration on both BT's AND purchases DO NOT EVER MAKE PURCHASES on this card.

The original SBT card will do to route money into your current account from an overpayment of the balance from the new BT card. How you do this is up to you. You can either put the card into credit and then transfer off, or you can transfer off and then bring in the BT to repay. The second method costs a couple of quid in interest but saves any awkward questions.

I'm not at this stage yet (only started stoozing in April) so don't know how Virgin (MBNA) will react with positive balances. I was fortunate to obtain an Egg green in April for the routing of cash to my stooze pot. However, with a 2% (max £50) BT fee for post May 2005 applicants, you need to be moving larger amounts to offset these charges.

stain3565 wrote:

And one other thing, when asking for the bank transfer, how exactly do you phrase this? SBT is a made up phrase so is it simply a "balance transfer of the full credit limit to my bank"?

You ask for a balance transfer from your bank account. If pressed for further details, you tell them you have an overdraft/loan etc you want to pay off.

Finally, have you read all the reference material on the subject?...

Articles on this site:

"Revenge - make cash from credit cards"
"Best balance transfers"
"What is a super balance transfer?"

And over on https://www.stoozing.com:

https://www.stoozing.com/full.htm

jamesfeatherstone

i am in a similar position to stain3565, and tina lives.
is there thr facility to opt out of paper statements, and only have online communication ?

your explanation is pretty clear, i understand that you can transfer the credit limit to an overdrawn current account to help clear it.
many thanks