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Tesco Bonus Credit Card - Warning?
selbmag
Posts: 37 Forumite
in Credit cards
I was in Texco today and picked up a leaflet for a "Tesco BONUS credit card"
It was offering 13 months BT at 0% with 2.9% fee. (standard 15.9%)
Upon closer inspection of the leaflet I found the following in the small print
"The balance transfer fee will attract interest at the rate applied to purchases from the date charged until paid off"
The card comes with 3 months 0% on puchases as weel. Then after that standard rate is 15.9%.
To me this then means that you woudl be charged interest on the BT fee from month 4. You also wont be able to pay the fee off until the BT is cleared due to the way payments are applied to 0% balances first.
Even so it is still a reasonable fee as the interest on a £5k BT fee is probably gonna be around £20 but still worth noting if you are caluculating a return on stoozing.
This is the first time I have seen such a clause. Is this going to become common?
It was offering 13 months BT at 0% with 2.9% fee. (standard 15.9%)
Upon closer inspection of the leaflet I found the following in the small print
"The balance transfer fee will attract interest at the rate applied to purchases from the date charged until paid off"
The card comes with 3 months 0% on puchases as weel. Then after that standard rate is 15.9%.
To me this then means that you woudl be charged interest on the BT fee from month 4. You also wont be able to pay the fee off until the BT is cleared due to the way payments are applied to 0% balances first.
Even so it is still a reasonable fee as the interest on a £5k BT fee is probably gonna be around £20 but still worth noting if you are caluculating a return on stoozing.
This is the first time I have seen such a clause. Is this going to become common?
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Comments
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There is a golden rule which says never spend on a balance transfer card, for exactly those reasons. Its called a negative payment hierarchy where payments go towards the lowest cost debt first. Have a read of Martins credit card page, specifically:
http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards#never0 -
There is a golden rule which says never spend on a balance transfer card, for exactly those reasons. Its called a negative payment hierarchy where payments go towards the lowest cost debt first. Have a read of Martins credit card page, specifically:
http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards#never
Yes thanks I know that and I never do
The point I am making is they are saying they will charge interest on the BT fee. Something I have never seen before.0 -
The interest on the BT fee will be pennies. 13 months money for 3.05% is still a good deal
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LTSB operate the same way. I think Barclays and Egg used to/still do?The point I am making is they are saying they will charge interest on the BT fee. Something I have never seen before.
It's been discussed/speculated before that there may be a couple of 'getarounds' with the RBSG cards though...
1. Create a small +ve balance at least equal to the BT fee before actioning the BT.
2. Overpay the first statement (minimum payment + BT fee).
Anyone tried one of these?0 -
At least it will until they introduce a £1 minimum interest charge (have they got one now?). Then it'll be pounds!nomoneytoday wrote: »The interest on the BT fee will be pennies.
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nomoneytoday wrote: »The interest on the BT fee will be pennies. 13 months money for 3.05% is still a good deal
Well on a £5k balance transfer the interest on the BT fee will be about £23 over the 13 months.0
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