Help please!

LiquidStool

Hi all,

Just tried to get help from Tesco credit card in regard to my minimum payment and they completely bamboozled me. My interest free finishes today and am looking to transfer to a new 12 month interest free with my bank, i could pay it off but really could do with keeping hold of my wedge.

All i could get out of them was that my statement wouldnt be made up until the 19th may which would show my minimum payment but by then i would have missed the opportunity to transfer my balance.

all i could find in relation to my minimum payment is this: "Minimum Repayment, the greater of all interest and default fees charged on your statement plus 1% of the new balance shown on your statement or £25 or the amount you owe over your credit limit which includes any over limit fees"

So, armed with this knowledge i still have no idea what they are talking about. Can somebody work this out?

my balance is £2715.81, i will not have made any further purchases, am not over my limit and have no fees.

I'm standing by if anyone needs further info, thanks.

[Deleted User]

£27.15 plus your interest. If it's still 0%, then just the £27.15. Otherwise your daily rate will be added on.

LiquidStool

Thanks ZX81, the problem is, and i don't know if i'm misunderstanding here, what is my "daily rate"? The 0% finished today

dixon-bainbridge

Have you read the terms & conditions?

LiquidStool

dixon-bainbridge wrote: »

Have you read the terms & conditions?

Um, i did when i first got the card a few years back, can't find them anywhere now...... :-(

[Deleted User]

LiquidStool wrote: »

Thanks ZX81, the problem is, and i don't know if i'm misunderstanding here, what is my "daily rate"? The 0% finished today

There is a more preceise formula that I can never remember but I'm sure someone will post, that accounts for the effect of compounding (ie interest on interest). But for any given day, you can assume that it's your balance times your APR/365 (ie to give you one day's interest).

So an APR of 20% on £1000 would be 1000 x 20/365, giving you a day's interest.

dixon-bainbridge

Ok, you could ring them and just ask them what your APR is now that the 0% has finished. Does the credit card account have online banking? If so, it might say it on there somewhere

Miss_Spendalot_2

LiquidStool wrote: »

I would have missed the opportunity to transfer my balance.

What is stopping you transferring you balance to another card ? If you just transfer the balance of £2715.81 then just pay off the remaining balance on the next statement date.
Not sure what your Apr is when the 0% offer ends but if it 16.9% and it has ended you will probably be looking at a minimum payment of around £38 ish If you wait until next statement date that is. Whatever you do though do not wait around for your next statement date to find another BT card..

dixon-bainbridge

LiquidStool wrote: »

All i could get out of them was that my statement wouldnt be made up until the 19th may which would show my minimum payment but by then i would have missed the opportunity to transfer my balance.

You can transfer your balance to a new card any time - just transfer your current balance and then pay off the extra interest when you get your statement through. The longer you wait the more interest you will pay.

angelina7

Im in total agreement with Miss spendalot and Dixon, just open a new 0% card and transfer the balance across. No need to even speak to Tescos about it as from experience they will try and stop you moving. When your Tescos statement comes through pay off anything outstanding and then make sure you call them to close the account, and again they will try to stop you closing but be persistant.

LiquidStool

Deleted_User wrote: »

There is a more preceise formula that I can never remember but I'm sure someone will post, that accounts for the effect of compounding (ie interest on interest). But for any given day, you can assume that it's your balance times your APR/365 (ie to give you one day's interest).

So an APR of 20% on £1000 would be 1000 x 20/365, giving you a day's interest.

well, i've just found out that the APR is 16.9% I used the formulae above and i'm obviously an idiot because my answer is an daily interest rate of 125.74% - i'm kinda hoping thats wrong??:rotfl: