TESCO Credit Card BT & Purchase

ToMoCo

Have a 0% ending with MBNA soon.

The Tesco credit card offers 0% for six months Balance transfer and 0% purchases for twelve months.

It states this on the website: -

"If you take advantage of the 0% balance transfer offer and the 0% purchase offer, your monthly repayments will be used to pay off your balance transfer first."

If i start with a balance transfer of £x & over the course of the first six months spend and pay back £x I should still have the balance £x but converted to purchases?

Thus effectivley giving me 12 months 0% on the balance transfer for a 2% fee?

Have I got this right?

Thanks

td_007

What this means is that for the first six months any BT or purchase will remain at 0%. After 6 months if you still have a balance from BT then, any payment you make will go reducing the BT amount first, however if you are carrying a balance then you will lose the interest free period on purchases and begin paying interest on the purchases and remaining balance.

To make sure you get the best out of the card - you can make BT and purchases for the first 6 months at the end of which you pay off everything and bring the balance to £0. You then use the card to make only purchases to enjoy another 6 months of 0% purchases.

Or use it only for purchases from day 1 and enjoy 12 months 0% rate.

ToMoCo

So for the first six months payments do not go towards balance transfer?

Example: -

MONTH 1 - BT £1000
Month 2 - Spend £500
Month 3 - Spend £500 pay back £500
Month 4 - pay back £500
Month 5 balance still £1000

Withe the statement made the balance transfer should be paid off and months 5 - 12 £1000 purchases @ 0%

?

YorkshireBoy

I agree with your logic.

td_007

ToMoCo wrote: »

So for the first six months payments do not go towards balance transfer?

In the first 6 months it does not matter as both purchases and BT are at 0%, the hierarchy kicks in at the end of the 0% rate (here first being 6 months for BT).

ToMoCo

td_007 wrote: »

the hierarchy kicks in at the end of the 0% rate (here first being 6 months for BT).

So you think the payments will be split 50/50 for the first six months or worse go towards purchases.

Would give them a call, but don't expect them to understand what I'm trying to say

YorkshireBoy

td_007 wrote: »

In the first 6 months it does not matter as both purchases and BT are at 0%, the hierarchy kicks in at the end of the 0% rate (here first being 6 months for BT).

I disagree. I think they've brought the wording in from their old cards - when the BT length exceeded the purchase length (as it does with old partners RBS/NatWest) - and got it wrong!

ToMoCo

Think I'll just apply and see what the T&C's say.

Has anyone recenty got this card that could clarify?

td_007

YorkshireBoy wrote: »

I disagree. I think they've brought the wording in from their old cards - when the BT length exceeded the purchase length (as it does with old partners RBS/NatWest) - and got it wrong!

Had a quick look at the summary box for allocation of payments and "special offers" come in at #3 before BT, purchases & promotional cheques (#4). Since both BT and purchase are "special offers" for the first 6 months, then both have equal weightage.

ToMoCo

Thanks TD_007

But it still comes back to that statement that if you take advantage of both 'Special offers' then repayments go towards BT first.

td_007

ToMoCo wrote: »

Thanks TD_007

But it still comes back to that statement that if you take advantage of both 'Special offers' then repayments go towards BT first.

I can see your point, but it also a clever play on words. As the credit card company I would interpret that to mean that during the first 6 months both are "special offers" - no differentiation between them, it then differentiates into BT and "special offer (purchase)" after 6 months. Now the statement comes into effect i.e. BT will be paid of first which is not surprising as it at ~18% compared to purchases (which is now liable to interest as you are carrying a balance!) which is at ~16%.