tesco credit card

janey70

hi just a bit fed up i applied for a tesco credit card as seen offer of no intrest for 15 months and still had £60 pound to pay off my sainsburys one which ive had for a year so got my tesco card transfered my balance over all good thought would save me some money and more time to pay this bit off , i was wrong i got my first statment from tesco and only owe £62 and my min payment is £25 ? so rang them asking why it was so high for such a small amount ,they investigated and rang me back saying new rules from jan min payment is £25 or above depending what you owe ! might of just stuck with my old one and paid interest .any one got any ideas of maybe getting another card that is worth getting ?

david39

I don't know if minimum payments are standardised across all credit cards but I know that MBNA have the same £25 minimum payment.

Make sure that you meet the £25 minimum payment on time or you will lose the 0% facility

Just look on it that by the time you get another card sorted out you probably will have reduced the total debt to £12 anyway so, inadvertently, you may have done yourself a favour.

Whichever card you get next, make sure you read and understand the Terms & Conditions first.

janey70

yeah will deffo make sure i read the small print from now on . what is MBNA sorry bit slow on this / ?

Stephen_Leak

My Tesco credit card may be for a different version of the same product, but I currently owe £140.11 and my minimum payment is £10.00. I've just checked my last statement.

From that statement ...

Minimum Repayment = the greater of the previous statement total of all interest and default fees charged on your statement plus £10.00, or 2% of the Payments to your account (excluding Tesco 'Buy Now Pay Later' special offers) or the amount you owe over your credit limit plus any adjustments which includes any over limit fees.

janey70

think it was brought out in january he said wish i never bothred now

chattychappy

£25 seems common these days, but a few years £5 or £10 was more common.

No doubt it reduces the processing costs of relatively small payments, but I have another theory about this. I think it is to do with these simplistic scare stories about how long it takes to pay off a debt if you only pay the minimum. Simplistic in my view because few people make a huge purchase (or BT) and then spend decades paying only the minimums without any further transactions.

Raising the "minimum minimum" impacts the number of years it takes to pay off a balance quite significantly. Excluding interest, if your minimum is normally 2%, then £25 will cut in at £1250 - so there will 4 years 2 months to run. If the minimum is £10, then it would take 8 years.

Tixy

New credit card rules came into place in February. And the minimum amount of minimum repayments has changed.

Most providers have kept old cards on whatever agreements they had in place before then although MBNA cards are the exception in that they have changes the T&Cs on their old accounts to comply with the new rules.

Janey if you have transferred to an interest free account and you were previously paying in interest then you should still save money overall. The minimum payment being higher just means the debt will be paid off quicker as well as cheaper.

janey70

what i did with my last one was pay more than the least amount and nearer the end date paid off a lot more especially at times when i had a lot to pay out dont use them regular only if i need something bad that i just couldnt afford at the time . been looking at the m and s card any opinions ?

Tixy

I can't see its worth transferring a balance of £60 again. Transferring to M&S will add a further £5 to your balance for their balance transfer fee.

Can you really not afford to pay £25 a month to this debt for the next 2months?

SnowTiger

janey70 wrote: »

hi just a bit fed up i applied for a tesco credit card as seen offer of no intrest for 15 months and still had £60 pound to pay off my sainsburys one which ive had for a year so got my tesco card transfered my balance over all good thought would save me some money and more time to pay this bit off , i was wrong i got my first statment from tesco and only owe £62 and my min payment is £25 ?

It's mentioned in the summary box on their website, a copy of which you presumably got with your card: http://www.tescobank.com/personal/finance/creditcards/clubcc/summary-box.html:

Your minimum payment will be...

£25 plus any existing arrears carried over from your previous statement

I'm a little surprised someone who struggles to pay off a credit card balance of £60 managed to get a Tesco CC. :rotfl:

janey70

i can afford to pay it but wanted a lesser payment option seemed like a good deal but has not turned out like that but like people have said will be paid off next month .