Cash advance from Tesco's Credit card

ztan

Hi just a quick one

I am looking at getting a Tesco's 0% for 13 month credit card. Not 100% if I will be successful in applying but need to know a few things before I do apply.

I will only need to spend max £1300, however I may need half of that to pay for a car, in cash... does anyone know what penalties there are, restrictions or anything on doing this?

Am I likely to be stung big time for it? I cannot seem to find out anywhere what the policy is on cash advances

CLAPTON

why not read the Tesco website; look under credit cards

ztan

Thanks Clapton, and with all due respect, that is the first place I looked ... and no joy...

zppp

http://www.tescofinance.com/personal/finance/finance/creditcards/clubcc/summary-box.jsp

YorkshireBoy

Don't take a cash advance. If you desperately need cash take a 'money transfer' instead.

Cash advance......3% fee and 24.9% interest
Money transfer.....0% fee and 16.9% interest

NB: all interest rates quoted are typical; yours may be higher.

(the above was obtained from the Tesco website )

ztan

Okay more googling found me this: can anyone translate this into thicko terms for me? If I withdraw £650 for example, in 2-3 transactions... is this going to affect my 0% interest rate. i will have paid the card off in 12 months before the )% runs out, and always paying more than the minimum repayment.


Question:

How much do I pay for cash advances on a Tesco Credit Card?

Answer:

The Annual Rate Effective for cash advances is 24.942% p.a. on Tesco Credit Cards. There is a 3% fee on the cash amount which you withdraw (minimum charge of £3.00). For more information, please see the Summary Box, which can be found on the back of your credit card monthly statement.

ztan

YorkshireBoy wrote: »

Don't take a cash advance. If you desperately need cash take a 'money transfer' instead.

Cash advance......3% fee and 24.9% interest
Money transfer.....0% fee and 16.9% interest

NB: all interest rates quoted are typical; yours may be higher.

(the above was obtained from the Tesco website )

Okay, being a complete newbie.. how do you go about a money transfer then?

YorkshireBoy

Well quite simply you ask for one...

http://www.tescofinance.com/personal/finance/finance/creditcards/glossary.html (See 'money transfer' and 'advance limit' specifically)

YorkshireBoy

But if you're wanting money transfers and purchases why are you looking at Tesco? Far better to apply for an MBNA Dual card...

http://www.mbna.co.uk/credit-cards/mbna-platinum-dual-credit-card/index.html

That'll give you 0% on both for 12 months, with the money transfer incurring a 4% fee (equivalent to around 3 months interest at 16.9% APR on Tesco).

ztan

Okay.. and in terms of interest... if I do request one, I'm going to lose out on the 0% interest on purchases aren't I?

If I just purchased the car on the credit card... then I'd get away without paying any extra, but by having the money transferred to my account, I'll be paying 16.9% interest each month on the £650 I withdrew...???

Sorry if you all think I'm being dense.. but this is totally new to me, and I want to make sure I'm not shooting myself in the foot!

Well until a minute ago, I didn't know I wanted a money transfer Yorkshire boy.. but that may work out better for me. Thanks

YorkshireBoy

ztan wrote: »

Okay.. and in terms of interest... if I do request one, I'm going to lose out on the 0% interest on purchases aren't I?

You won't 'lose out'. Until January next year your payments will reduce the 0% balance before the money transfer balance. That policy will be reversed in January.

If I just purchased the car on the credit card... then I'd get away without paying any extra

The dealer will almost certainly charge 3% for the privilege (if indeed a dealer selling £650 cars takes credit cards!).

but by having the money transferred to my account, I'll be paying 16.9% interest each month on the £650 I withdrew...???

The 'A' in 16.9% APR stands for 'annual'. Monthly that equates to around 1.3%.

Sorry if you all think I'm being dense.. but this is totally new to me, and I want to make sure I'm not shooting myself in the foot!

Then the useful guides on credit cards would be a good place to start. See the top of the page.