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Watch out for Tesco CC transfers

Community Veteran
Posts: 6,586
Thanks: 206
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Registered: 16-02-2009

Watch out for Tesco CC transfers

I had a big car bill and Tesco were offering a 0% money transfer till next Dec, no brainer I thought. Sad

So I get my CC bill today and no mention of the 0%,  so phone them and they say, yes it is 0% BUT ANY PURCHASES MADE IN THE MEAN TIME WILL BE CHARGED INTEREST EVEN IF YOU PAY IT (the purchases) OFF IN FULL.

e.g. make £400 in purchases and pay it off, and STILL PAY £12 interest Angry

So effectively they are charging me interest on EVERY purchase EVERY MONTH until I pay the transfer off. Lips are sealed

 

I said I wanted to complain and they basically said tough, it was in the small print.

Every other CC I have had will ring fence any 0% and NOT charge interest on purchases (when paid off), so WATCH OUT PEOPLE, don't get caught like me.

 

6 REPLIES
RobPN
Aspiring Pro
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Registered: 17-05-2013

Re: Watch out for Tesco CC transfers


HairyMcbiker wrote:

I had a big car bill ...

 


That's the trouble with big cars.  Wink

Seriously though, if you haven't got the cash available to pay the card off in full, perhaps it would be a good idea to look around for another CC offering 0% balance transfers and transfer the balance away from the Tesco card.

 

Community Veteran
Posts: 6,586
Thanks: 206
Fixes: 14
Registered: 16-02-2009

Re: Watch out for Tesco CC transfers

I have a Barclaycard that I only use for transfers no purchases on it.
BUT I NORMALLY pay it (tesco) off every month, but this transfer bill caught me out. I thought I can pay it off a bit at a time till next year, but no way I am paying it off AND paying interest every month. It would mean the cost would be well over 100% bit like those instant cash ads on the telly.
I will be transferring it to B'card next month but in effect I will have paid for 2 transfers, (they are now offering 0% till June 2019).

RobPN
Aspiring Pro
Posts: 797
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Registered: 17-05-2013

Re: Watch out for Tesco CC transfers

Ah yes, the transfer fee catch!  I haven't done any balance transfers for many years and when I did so there wasn't a fee.

Aren't there any card offers around that don't charge that fee?

It might be worth a look on MoneySavingExpert.com

 

Edit:  Balance Transfer Credit Cards

          No Fee 0% Cards

Community Veteran
Posts: 6,586
Thanks: 206
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Registered: 16-02-2009

Re: Watch out for Tesco CC transfers

It's not the fee, they charge that anyway (2.9%). But the underhanded way they are doing it. Unless you can afford to pay it off (which is usually not the case since you need the money) they will charge you interest on any purchases in the mean time, until you pay it off.
So if I "borrowed" £500 @ 0%, and have monthly purchases of £400, then over 18 months I would have to pay them £306 in interest even if I paid the £400 + interest off every month. Then I would still have to pay the £500.
So as I said I will be moving it to B'card and NEVER using tesco for a transfer ever again.


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Re: Watch out for Tesco CC transfers

I have a balance transfer card with Tesco although the 0% interest free period has expired. I never got charged interest on purchases if I paid those in full which I used to do most month. and there was up to 51 days interest -free depending on when the purchase hit to account and the billing date. Even on those months I didn't pay in full I only got charged interest on the purchases and not on the transferred part.

 

This is per their T&C:

Capture.JPG

I seem to remember that if you were late with a payment then they will charge interest on the whole balance each month but can't recall them waiving the interest-free period.

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Courage is resistance to fear, mastery of fear, not absence of fear - Mark Twain
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Jonpe
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Registered: 05-09-2016

Re: Watch out for Tesco CC transfers

I think Martin Lewis (money saving expert) has been warning about this for years.  You are effectively required to pay off the transferred (or cheapest, in terms of interest) amount first.  @HairyMcbiker's way of having a separate card for the transfer is the best way of getting around this problem.