Credit Card Fee's Question

haribo85

Hi All,

I am looking into the MSE best 0% Credit Card guide, and like the look of the Tesco one, [STRIKE]link below[/STRIKE] (can't post link).

So this card has:
0% on purchases for 16 months.
0% on balance transfers for 9 months.

What I don't quite understand is the 2.9% fee from account opening. Is this a fee on the total spend you put on the card in a one year period?

For example:
If I purchased £100 worth of goods in year 1, paid this off in full, would I be charged £2.90 in fee's for using the card? When would this fee be applied?

I hope someone can set me straight,

Many thanks.

InsideInsurance

The 2.9% fee is on balance transfers. So if you transferred £1,000 to the card from another credit card you hold they would charge you a £29 fee which they add to the balance (ie the balance would be £1,029)

There is no fee for purchases to you

haribo85

Hi,

Thanks for your reply, that makes sense.

So, I guess, regardless of whether you make one balance transfer, or lots of little ones, you will still pay the same fee in the end anyway?

Also, I don't suppose anyone knows what the credit limit on the Tesco Card is?

Thanks

[Deleted User]

The credit limit is whatever they decide to give you. There's no standard.

You're mostly right re the fee being the same whether the BTs are a single one or lots of small ones - with the exception that there will be a min fee (without checking), I imagine with will be something like 2.9% with a £3 minimum.

Which means that if you BT'd £50 (unlikely though that may be), you would pay £3, which is effectively a 6% fee.

haribo85

OK, I just kept seeing them talking about a credit limit of £1200, so didn't know whether this was the max they would lend on it or just a random number.

Now trying to weight up the pro's and con's of their two products:

1. 0% on purchases for 16 months and 0% on balance transfer for 9 months (2.9% fee).

2. 0% on balance transfers for 22 months (2.9% fee) and 0% on purchases for 6 months.


Do you have any idea of how repayments work? The second card, if I had a £1000 limit, made £500 of purchases and £500 balance transfer, and I repaid £500 off of it by month 6, is this off purchases or the balance transfer?

Gromitt

The £1200 limit is a standard used by card issuers to illustrate interest and monthly payments. Its purely so you can compare cards. Its nothing to do with the maximum or the amount they'll lend you. The idea is that if they all used different amounts in their examples, it would be far more difficult to compare them.

[Deleted User]

haribo85 wrote: »

Do you have any idea of how repayments work? The second card, if I had a £1000 limit, made £500 of purchases and £500 balance transfer, and I repaid £500 off of it by month 6, is this off purchases or the balance transfer?

Payments will come off the higher rate balance. But if both are at 0% with different end dates, you need to specifically check how these would be treated. There is no set guideline that it needs to come off the promo that finishes earlier, for example.

haribo85

Hi,

Sorry for bringing up a slightly old thread, but I am now in a position to apply for this card.

I have another question - if I were to go for the 24 months 0% on balance transfers for 22 months, how many balance transfer can you make?

This line sort of confuses me - "After the first six months, unless you pay off any balance transfers in full, interest will be charged on your purchases as soon as they are made."

sistafromanothermista

haribo85 wrote: »

Hi,

Sorry for bringing up a slightly old thread, but I am now in a position to apply for this card.

I have another question - if I were to go for the 24 months 0% on balance transfers for 22 months, how many balance transfer can you make?

This line sort of confuses me - "After the first six months, unless you pay off any balance transfers in full, interest will be charged on your purchases as soon as they are made."

You will have APR's for different things.
0% on BT but xx on Purchases.
The general idea is you don't spend on BT cards because you will pay interest if you do.

You can do as many BT as you want but bear in mind only upto around 95% of the total available credit. Also each BT will accrue the BT fee so you need to factor this in.

InsideInsurance

haribo85 wrote: »

if I were to go for the 24 months 0% on balance transfers for 22 months, how many balance transfer can you make?

Normally it is an unlimited count but evidently you have your credit limit on the card plus some cards only give you the interest free period for transfers made within the first X months, any transfers made after that date would have normal rates applied.

haribo85

Thanks for your replies.

What does still confuse me though, on the MSE Credit Card page, under restrictions - it states:

"Any restrictions? Must transfer at account opening"

Does this mean I must transfer any balances on opening from other Credit Cards to the Tesco one, and I cannot add anymore after this point?

I may want to make multiple transfers to the card, so if this is the case then I need to know.

Thanks