Using Tesco Clubcard credit card

drewziph

I have just applied for a Tesco clubcard credit card in order to purchase a laptop on it and take advantage of the 0% interest free credit on purchases period.

I was just wondering about a few things, as this is the first credit card I have owned. I'd be very grateful if someone can clear this up.

Although I am getting the tesco card, I am looking at buying a laptop from elsewhere.
I have been offered a £400 credit limit and plan on using all of this on the laptop, and know I am able to pay off the full amount in 3 months maximum.

The card says it has a 13 month interest free period. Does this mean that I will not pay any interest on the laptop for a year at all? I am confused as it also says there is a 51 day interest free period. Do I have to of paid the laptop off in 51 days to have to not pay any interest on it or does this only apply after the first year?

In addition to this I couldn't seem to find anywhere any information about minimum repayments on the card.

Assuming I use the full 400, can anyone tell me how much I will be paying for the first few months?

Finally. I was looking for reassurance that I am able to pay off the full amount as soon as I have the money to be able to do it in my bank account?

Thanks in advance.

Brian1966

With Tesco the minimum payment is 3% of outstanding balance so on £400 it will be £12 which you MUST pay on time or you will lose the 0%.
You are correct in that you have the full 13 months in which to pay off without interest being added,

SwiftEdge

So when does the 51 day period interest free period start applying, is that after the 13 months have ended?

Would the 13 months be from when you recieve the card or from the date of the first purchase?

The_Cappuccino_Kid

SwiftEdge wrote: »

So when does the 51 day period interest free period start applying, is that after the 13 months have ended?

Would the 13 months be from when you recieve the card or from the date of the first purchase?

The 51 days is the maximum interest free period offered between buying something and paying off the balance.

So, you buy something on the 10th August and your statement is due on 9th September. The payment due date is 30th September - there's your 51 days.

Note that you have to clear the balance - if your balance is £5000 and you clear all but a penny, you will pay interest.

The 13 months will be from the card issue date.

Any

13 mths 0% interest on purchases is just that - you incure no interest on your balance for this period, usually from account opening, BUT you still have to make minimum monthly payments.

Once this period is out, you get UP TO 51 days no interest, explained brilliantly by Capuccino kid - you make purchase, get the bill and pay the bill in full by due date - no interest. So if you buy new item just the day after your last statement was produced, this item will not show on the bill until the next statement and then you still have some time to pay it off - here you go, you get up to 51 days to pay the item. As long as you pay every bill IN FULL (obviously we are now talking after the promotional 13 mths period) you will NEVER pay any interest.

As it is your first card, another advice:

NEVER withdraw cash on it - cash withdrawals incure interest from day one and the % charge is sky high
Be aware that for foreign transactions there are extra charges on this card - see your T&C for fees

Evilm

Tesco does have a minimum payment amount of (I think) 3 % of the balance. As long as that is paid on time every month then the remainder will remain interest free until the 0% period is up.

After the 0% ends then you need to clear the statement balance in full on time every month so that you don't incur any interest.