Virgin Money 'interest free' charging interest?

cRuNcHiE

You shouldn't get charged interest on the balance transfer fee.

I also noticed the either min payment or whole payment thing so i just setup a standing order using my online banking

NickX

To the best of my knowledge Virgin collect the Balance Transfer fee as part of the first payment and no interest is accrued on it.

jenster

there did the same with us interest of 24p and it says on statement if min payment only next months int is 31p !! -- again rang them -- just taken off -- makes u wonder how many ring up for 20 odd pence but they all add up

clio

How do you make the monthly apr in to a years apr ie:
1.2408% x 12 = 14.8896 it doesn't add up to 15.9% unless
they just round it off??

methusala_2

nah clio, go the other way.
If the annual apr is 15.9 then divide that by 366 ( leap year) for daily apr then multiply that by the number of days in your current statement period which could be 29,30 or 31 depending on when the statement is raised and you have your current months apr . Then of course it is further complicated if the interest rate changed for you during the current year, and when. Hope this makes sense

YorkshireBoy

clio: What you've calculated is the 'annual non-compounded equivalent' (or 'simple') interest rate.

methusala: Your figure doesn't allow for monthly compounding.

To calculate accurately involves twelfth roots, although why bother when there are calculators that will do it for you...

http://www.stoozing.com/mon2yr.htm (does both monthly from APR, and APR from monthly).

clio

why does an APR have to be compounded

NickX

Altering Due Dates is one of the latest "tricks" being utilised by the card companies.

The have bought your payment Due Date forward hoping that you don't notice and pay on the usual day (02/09/2008), then you would incur a late payment fee.

However, you have spotted it so won't make the payment late and won't earn them £12

NickX

clio wrote: »

should i ring them up and ask why they have done it??

Well you could phone them and have a moan about. 13 days to make the payment isn't very fair is it ?

However, I suspect that they will have it in the Terms and Conditions that they can alter the Due Dates when they feel like it in the same way that they can alter the interest rate whenever.

normanmark

NickX wrote: »

Altering Due Dates is one of the latest "tricks" being utilised by the card companies.

The have bought your payment Due Date forward hoping that you don't notice and pay on the usual day (02/09/2008), then you would incur a late payment fee.

However, you have spotted it so won't make the payment late and won't earn them £12

Well isnt that down to the fact that the date between the statement being produced and the due date being a set figure?

Therefore as not every month has the same amount of days you're going to get differing statement dates and due dates.