Naughty Tesco 0% balance transfer offer

ginlin

I use my existing Tesco Clubcard Credit Card for the vast majority of our monthly spending, but last month got a leaflet about a 0% balance transfer for 12 months.

So, as an offer on another card was finishing, I took up the offer and transferred £1300 to it.

I always pay off my monthly spending, and was thus gutted when I received this months statement with interest on this months purchases and nothing on the balance transfer!

So, after endless calls to Tesco Bank, I was told it was in the terms, that certainly don't appear on the literature that if you take up the offer you pay interest on your purchases....so basically was told, the only way to avoid charges is to not spend on it!

Disgusting!

withabix

I think all BTs to existing cards work like that don't they?

rb10

Not paying interest on purchases is a concession that is offered when you pay off your balance in full.

If you don't pay the balance off in full, then you lose the concession, and will be charged interest from the date of the purchase.

aleph_0

Whilst I don't like the way Balance Transfers work, the terms are perfectly clear:
http://www.tescobank.com/assets/sections/credit-cards/pdf/tesco-bank-cc-bt-summary-box.pdf

"Interest Free Period: Maximum 51 days for purchases if you pay your balance in full and on time, and have paid the previous month’s balance in full and on time."

The balance transfer amount, whilst it does have a 0% rate, is still part of the account balance, so unless it is paid of in full as well, the interest free period doesn't apply. This is the same for all the banks.

This is why it's usually a good idea not to do day-to-day spending on an account being used for a 0% balance transfer.

Eonel

This is a pitfall of 0% balance transfers and how it would work with every other credit card provider.

Never mix purchases and 0% balance transfer on one card.

opinions4u

Never mix spending and balance transfers unless you have to.

ginlin

Oh dear!

My apologies to Tesco then, as I hadn't realised this was the case