v concerned about Virgin/mbna cards

jessicad_2

Hi all

I have been reading the threads on here relating to MBNA and Virgin upping interest rates on their cards to huge percentages and I am getting rather worried.

I have just transferred my MBNA balance to a halifax cc on a 5.95% for life deal, I am now £70.00 in Credit on the MBNA card - so they owe me money!!

However i have a virgin card with a balance of around £5600 on a 0% deal due to expire next January. I have a direct debit set up which takes the minimum payment of around £25 per month and then I pay extra each month. I haven't made any late payments on this card although I did on the MBNA card, but I have never missed a payment altogether.

I am concerned that Virgin could increase my interest rate once the deal expires which would really hamper my efforts to clear the balance and that I may not be able to get a better deal due to the credit crunch and less deals available.

Am I worrying unnecessarily??? Is it only this company who seem to be behaving in this manner?

thank you

dhassen

I wouldn't worry about it now, your offer doesn't expire until next Jan, so you've ages left before they might (they might not though) hike up your rate. And, you never know, you might be able to get a different offer nearer the time, or be able to pay more off than you currently do now.

GeorgeUK

Quite a few companies have been raising their APR's, but not sure what effect the recent interest rate cut by Bank of England will have.

Would it be possible a few weeks before the Virgin card expires to try to get a 0% BT offer from the other MBNA card instead of closing it down?

Toastie

GeorgeUK wrote: »

Quite a few companies have been raising their APR's, but not sure what effect the recent interest rate cut by Bank of England will have.

Would it be possible a few weeks before the Virgin card expires to try to get a 0% BT offer from the other MBNA card instead of closing it down?

MBNA to MBNA can't happen. They wouldn't let you (well i very much doubt it as it's the same institution).

I guess you would have to look for another 0% card. Barclays have very low rates though. So you'd have to wait and see for the out come of the interest decrease.

YorkshireBoy

Toastie wrote: »

MBNA to MBNA can't happen. They wouldn't let you (well i very much doubt it as it's the same institution).

I guess you would have to look for another 0% card.

OP would BT from their current account (ie, a super balance transfer), and settle the other MBNA card from there...assuming the limit was sufficient?

Toastie

YorkshireBoy wrote: »

OP would BT from their current account (ie, a super balance transfer), and settle the other MBNA card from there...assuming the limit was sufficient?

Yes, i didn't think about it like that. Providing they have the limits and MBNA don't know what will happen.

Yorkshire Boy right again

SBT to your bank and then you can clear part or all of the Virgin card.

jessicad_2

sorry I'm not sure what a super balance transfer is - do you mean I use my overdraft to pay off my credit card and then use transfer back onto the MBNA or virgin card at a better negotiated rate. Is this to avoid incurring excess BT feee's and to allow me to use the same lender i.e MBNA.

I think I may look for a different lender altogether such as barclays as I feel MBNA is such a high risk at the moment.
thanks for your advice all
xx

Toastie

Barclays give poor low rates. AVOID!

Super balance transfer is transfering money INTO your bank account.

Virgin (backed my MBNA) do this and MBNA.

Simply (do not do this without reading how to on the credit card section of Martin Lewis);

1) The debt free MBNA card will allow you to transfer XX% in to your bank account.
2) You use the Money transfered to pay off the existing debt card (virgin)
3) By clearing the VIRGIN debt you can close the account or keep it open, then you will have the debt on the original MBNA card but won't be paying interest - then pay off as much as possible on this card and Halifax.
4) you can SBT (super balance transfer) AGAIN from the Virgin Card covering the debt and the steps are repeated.

I hope this is clear.

jessicad_2

ahh I see, i didn't realise that MBNA would transfer cash into my bank account without charging any interest - would this not be considered a cash advance and cost me a higher rate of interest?

I understand that doing this would however avoid a balance transfer fee.

GeorgeUK

When you are calling to activate the card you can double check that it won't go through as a cash advance, but from the posts i've seen where people have applied, they had confirmed that it was a Balance Transfer.

Keeping_Motivated

Can I just butt in here and ask if Virgin ask what the super balance transfer is for? I was hoping to transfer some money into my bank account to buy a car and think this is the cheapest way to do this credit wise.

Thanks
KM