Virgin Credit Card - minimum payment

BrightonLad

I am confused! Just got my first statement from Virgin. I have made use of their 9 month interest free balance transfers. I have (so far!) transferred £6166.21 to the card (all of which are on my statement), and i expected the minimum payment to be around £170, but it is only £5.

I have double checked the t&c and this is what it says in the summary box

Monthly minimum paymentThe lesser of:
• 2.25% of your balance (min. £5) or
• charges for Payment Protection Cover plus interest and fees, plus £5 or
• your balance, if it's under £5.


So how come my minimum payment is only a fiver? Any ideas?

Reaper

This comes up all the time. Re-read what you quoted in your post. It is the lesser not the greater of those listed.

In your case the lesser is :
charges for Payment Protection Cover (£0) plus interest (£0) and fees (£0), plus £5
Total = £5

BrightonLad

hmmmm. i see what you mean Reaper, because i thought the same thing at first, but then i thought it meant the lesser of the three listed bullet points, rather than the lesser of 2.75% of my balance and £5.

Otherwise, i don't see why would they have the last bullet point there too.

eg if your balance is £4 you would pay £4 (ie your balance if its under £5)
if your balance is £100 you would pay £5 (2.75% is only £2.75 so the £5 minimum would kick in)
if your balance is £200 you would pay £5.50 (2.75%)
if your balance is £1000 you would pay £27.50 (2.75%)

Reaper

BrightonLad wrote:

i thought it meant the lesser of the three listed bullet points

It does. In your case point 2 applies. If you had £4 on the card point 3 would apply. It you were outside your 0% period that would bump up point 2 and so point 1 would apply instead. It is whichever bullet point gives you the lowest figure.

Currently bullet point 2 works out the best for you so that is why you are paying £5.

BrightonLad

I see, i think i get it now.

It is unusual though isn't it? Most other cards i have had have a 2% - 3% min payment each month. I don't think i have ever paid that little for a min payment with that size balance.

Skint_Catt

All my Virgin card statement have shown £5 min payment even though I pay £100 a month. It's pretty standard I think to other 0% card deals.

S_C

Reaper

As far as I know only MBNA cards offer this. However MBNA run a lot of re-branded credit cards, including Virgin.

YorkshireBoy

Reaper wrote:

...MBNA run a lot of re-branded credit cards, including Virgin.

You can find a comprehensive list of MBNA run cards at http://www.stoozing.com/cards.htm

BrightonLad

Well thanks for the info guys.

As i budgeted for £180 min payment, I will pay the £5 min, and keep the £175 in my ING savings account each month (maxed out my ISA now)

I've got the money to pay all this off at the end, as the balances i xferred to it were from previously stoozed cards, so this is all good news!!