Credit Card Confusion

Cristina_Mason

I have rang Virgin today to ask what interest I'm paying on my outstanding balance which is £682 @ 0% and 652 @ 15.9%. I have a new Barclycard who will offer 6.9% for the life of the balance transfer - which is better, I can't figure how to work it out.

skyrider007

Surely the 0% offer would benefit you more if you plan to pay off the debt within the period in which the 0% interest is offered.

A fixed 6.9% interest would be cheaper IF you plan to spread repayments over a longer time.

Locke

How long do you think it will take you to pay it off?

BoGoF

There's a handy calculator near the bottom of the page under 'free tools' and minimum repayment calculator. Just punch in the figures.

SarahNeedle1872

Cristina_Mason wrote: »

I have rang Virgin today to ask what interest I'm paying on my outstanding balance which is £682 @ 0% and 652 @ 15.9%. I have a new Barclycard who will offer 6.9% for the life of the balance transfer - which is better, I can't figure how to work it out.

If these are both on the same card, any payment u make will go off the 0% balance first, leaving the other £652 earning 15.9% interest. It depends on how long u think u will take to pay it off.... if its likely to take u a long time to pay it off, the 6.9% deal would probably be better

CannyJock

Cristina_Mason wrote: »

I have rang Virgin today to ask what interest I'm paying on my outstanding balance which is £682 @ 0% and 652 @ 15.9%. I have a new Barclycard who will offer 6.9% for the life of the balance transfer - which is better, I can't figure how to work it out.

Is there a time limit on how long the LOB deal is for? When does you 0% period run out?

If the 682 and 652 are both on the same Virgin card then I wouldn't move them onto the LOB card. Transferring anything less than the full amount will mean that the "allocation of payment" rules will match your "payments/transfer" against your 0% amount anyway.

If both on same card you're effectively on 7.77% until your 0% period runs out. This changes each month as your payments will reduce your 0% amount. If there's a 3% fee for moving it so that'll make you worse off in the short term with a 6.9% LOB but better off in the longer term.

Presumably Barclaycard are charging you a BT fee for the trouble? Personally I'd call Barclaycard and tell them that you don have a balance to transfer but that you're not happy with the rate they're offering and the BT fee, see if they'll reduce it - nothing to lose

If you get a good offer, you could transfer it to Barclaycard on best terms possible. Then once your Virgin card is clear and you've had a nil balance statement you could always phone them and ask for a renewal of your 0% deal, no fee etc etc.

Worth moving it to the 6.9% LOB before your 0% period runs out of course.