Balance transfer chicanery

tarkers1

Hi, I have just taken out a Tesco CC with a 3,600 limit. I have a balance transfer of 2,300 at 0% for 9 months. New purchases are 0% for 13 months. I have made purchases totalling 600 already. My question is, if I were to pay off the 2,300 straight away, would that repayment clear the balance transfer, leaving me free to spend up to 3,600 for 13 months?

Apologies if this has been asked before -- I searched but couldn't find anything.

Saucepot

Check what in what order the repayments are made. Details will be on the statement, T&C's or website. This will tell you what order repayments pay off balances, whether the BT or purchases are paid off first.

chexum

Look for the description of the allocation of payments, the current t&cs say:

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

When you pay us we use it to pay off:
-First those items which attract the highest interest rates.
-This will normally be in the order of interest and fees followed by transaction type of cash advances, standard rate balance transfers, purchases and money transfers, special offer rates
-If there is more than one item at the same rate we pay off the oldest one first.

Make sure you check your own copy, there are a few variation of Tesco cards, not all of them available from their web site, so yours may actually be different.

tarkers1

Thanks for the replies. It looks like I can do this, though I will have to check my own T&Cs to be sure. Surprised this isn't a more popular thing to do, although I guess many people are maxed out on their CCs and may not have a bit of cash spare to roll over their debt.

thenudeone

chexum wrote: »

-If there is more than one item at the same rate we pay off the oldest one first.[/I]

Which means the one that started first, not necessarily the one that ends first. It's worth pointing out because it's very important and even customer service staff sometimes get it wrong.