Quick explanation required

Astraeus

Virgin just called to tell me my card is on it's way with a £1,000 credit limit. The reason I've chosen this card is because it gets me 10% off purchases at Zavvi and the only reason I'm using the card is to get a PS3 and GTA IV. Other purchases will remain on my long-term Halifax card.

Can someone explain to me if this is a suitable way of managing the card for the short time it's in use:

8th May - Balance Transfer £250 from another card at 2.98% with 0% interest
28th May - Purchase PS3 and GTA IV from Zavvi (£280)
1st June - Pay off £50 of BT'd amount to tide over the interest-free period
Mid-June - Pay off BT amount AND purchase amount in full (~£600)

To confirm, that will incur no interest whatsoever, will it?

Bismarck

seems you're paying off the £600 balance earlier than you may need to...when does your 0% deal end- if you're paying the balance transfer fee, shouldn't you get more mileage out of the 0% rate?

Astraeus

The BT rate lasts 15 months and the purchases 3 months. I guess I could use the BT for longer actually but you are required to pay 5% or £25 a month every month, aren't you? I kind of just want to have it out of the way and not hanging over my head.

clio

You may run into a problem as BT and Purchase on a card doesn't mix well matey

Bismarck

Astraeus wrote: »

The BT rate lasts 15 months and the purchases 3 months. I guess I could use the BT for longer actually but you are required to pay 5% or £25 a month every month, aren't you? I kind of just want to have it out of the way and not hanging over my head.

In that case, you're probably right, use the card for its original purpose, then pay it off before the interest bites....maybe look to use the rest of the 0% term later...TVs and purchase deals are designed to mess you up!

"good game, good game" as brucie would say!

Astraeus

I know the Golden Rule about not spending on a BT card but that £31 saving by getting the PS3 from Zavvi was too tempting so I'll have to make the purchase on this card. I won't be straddling months, the entire balance (purchase + BT) will be paid within 40 days MAX of the first transaction on the card - no interest, surely?

NickX

Why not make the purchase first, then pay it off in full, then do your Balance Transfer which you can then leave to benefit from 14 months at 0% interest ?

I guess it needs a calculation to work out whether the 14 month 0% Balance Transfer will save more than the interest you will have to pay in delaying making your Balance Transfer until after the purchase transaction is settled. Probably not much in it

GunJack

yes, but watch that you may have a minimum BT, ie £500, so trying to bt £250 may not be possible. Check your t's&c's.

Astraeus

I spoke to Virgin and confirmed I'd be BTing about £300 into the account. I don't plan on BTing any more into it, just paying it off £50 at a time. Nick, good suggestion about making the purchase first - I'll consider that depending on when I get the card through.

YorkshireBoy

The minimum BT to the Virgin Money card is £25.00

The 'new look' Virgin T&C's seem to indicate that anything more than the minimum payment goes towards your purchases balance in the first 3 months, meaning you could still take advantage of 15 months 0% on BT's so long as you repaid your purchases balance on top of your statemented minimum payments within the first 3 months.

https://wwwn.applyonlinenow.com/UKCCapp/Ctl/link?eid=EF3C6FB7
(see condition 2f)

Astraeus

So I could make the £300 of purchases and the £300 of BT and then just pay off £300 in my first month and then be paying no interest on the remaining outstanding balance?

Sorry for being slow about this, I want to ensure I'm not screwed over by MBNA's high interest trickery.