Tesco Clubcard Credit Card

robertoefc

Hi there
Has anybody ever had one of these credit cards?

Simple query really - I'm looking at getting one of these cards as they are 0% interest on purchases for 12 months - going to America soon and was hoping to use it there, however have noted on the product details under 'Fees & Charges' it has 'Foreign Exchange - 2.75% EU, 2.75% NON EU' - now as the transactions will be in dollars if I use it over there, does that mean they will charge this 2.75% fee for each transaction?

Sorry if this seems a silly question

BigSaver_2

robertoefc wrote: »

Hi there
Has anybody ever had one of these credit cards?

Simple query really - I'm looking at getting one of these cards as they are 0% interest on purchases for 12 months - going to America soon and was hoping to use it there, however have noted on the product details under 'Fees & Charges' it has 'Foreign Exchange - 2.75% EU, 2.75% NON EU' - now as the transactions will be in dollars if I use it over there, does that mean they will charge this 2.75% fee for each transaction?

Sorry if this seems a silly question

Hi,

Do you get charged interest, if you pay the minimum payment every month, during the 12 months interest free period? The reason why i ask is because on purchases there a monthly interest rate of 1-2% every month (shown on there website), isn't is meant to be interest free for 12 months?

Thank you

Simon_Preston

BigSaver wrote: »

Do you get charged interest, if you pay the minimum payment every month, during the 12 months interest free period? The reason why i ask is because on purchases there a monthly interest rate of 1-2% every month (shown on there website), isn't is meant to be interest free for 12 months?

This is after the 0% promotion ends. For the first 12 months you will charged no interest as long as you keep up with the payments.
As for the OP. Can't answer that one.

BigSaver_2

so if i pay minimum payments every month and then pay a lump sum for the remaining balance in the 11th month...i would have to pay no interest on purchases?

td_007

robertoefc wrote: »

Simple query really - I'm looking at getting one of these cards as they are 0% interest on purchases for 12 months - going to America soon and was hoping to use it there, however have noted on the product details under 'Fees & Charges' it has 'Foreign Exchange - 2.75% EU, 2.75% NON EU' - now as the transactions will be in dollars if I use it over there, does that mean they will charge this 2.75% fee for each transaction?

Yes, you will be charged for each transactions. If you are looking to avoid charges consider Amex which gives 5% cashback in the first 3 months and so will offset the charges, or the Abbey and Post Office card which not do not have any charges or Nationwide which has a low charge of 0.84%.

td_007

BigSaver wrote: »

so if i pay minimum payments every month and then pay a lump sum for the remaining balance in the 11th month...i would have to pay no interest on purchases?

That is right. Make sure you set up a direct debit for minimum payment so that there are not missed/late payments.

robertoefc

td_007 wrote: »

Yes, you will be charged for each transactions. If you are looking to avoid charges consider Amex which gives 5% cashback in the first 3 months and so will offset the charges, or the Abbey and Post Office card which not do not have any charges or Nationwide which has a low charge of 0.84%.

Thanks for the reply. Will have a look at them other cards. Another quick question - would I still be charged the foreign exchange fee if I were to book the hotels over here? I presume because it would be charged in dollars it would incur the fee?

Cheers

YorkshireBoy

robertoefc wrote: »

would I still be charged the foreign exchange fee if I were to book the hotels over here? I presume because it would be charged in dollars it would incur the fee?

You presume correctly. The fee is charged for currency conversion, but the total cost is still likely to be cheaper than the impact of the buy/sell rates on cash/TC's obtained beforehand from travel agents and the Post Office etc, due to the interbank rate used.

However, there are cheaper options still for overseas spending. See here...

http://www.moneysavingexpert.com/travel/cheap-travel-money

kaspar

what's the credit limit likely to be with the Tesco Credit Card?

CannyJock

kaspar wrote: »

what's the credit limit likely to be with the Tesco Credit Card?

Depends on your circumstances.

I was initially offered £2,750 - appealed and ask it to be increased to £10,000. Just had letter back confirming they'll do it and card's in the post.

robertoefc

YorkshireBoy wrote: »

You presume correctly. The fee is charged for currency conversion, but the total cost is still likely to be cheaper than the impact of the buy/sell rates on cash/TC's obtained beforehand from travel agents and the Post Office etc, due to the interbank rate used.

However, there are cheaper options still for overseas spending. See here...

Cheers.

I'm being a little naive here I think.

This 'foreign exchange fee' - they would only charge it per transaction would they not? It wouldn't be a fee incurred on a monthly basis ala interest?

That is to say, if the card was used for a £200 transaction, they would charge £2.75 just the once, regardless of how many months it took to repay the £200?

Does this make sense?