Tesco Credit Card

Exabner

I have a Tesco credit card. It's limit is low. When it is used (by my wife or me) and it would take us over the 'awarded' credit limit, rather than refuse a payment it allows it and then charges me 12 pounds because I've gone over the limit. Pretty much every month. Is this right or even legal? They won't increase the limit until they've seen a millenium of data or some such guff. I pay it off every month.

Any thoughts (other than dumping the card or micro-managing expenses)?

Surely they should just refuse the payment?

grumbler

Surely?
This is legal and most credit cards work this way. So do agreed overdrafts. Very few CCs refuse payments, but don't guarantee this.

Either try getting a card with a higher limit or make 1-2 extra payments to the CC during the statement month.

Herbalus

Look at the terms and conditions. It is probably even on the summary sheet. It will say, in fancier language than this, that every time you go over your limit they will charge you £12, and probably every payment that is refused because it would take you over your limit is £12.

You need to be aware of how much your limit is and stick to it. Regularly exceeding your limit suggests that you cannot manage a credit card well and perhaps your finances are overstretched.

Remember, you have signed a contract with Tesco to have access to their money up to an agreed limit. Exceeding the limit has consequences. Either make payments to the card during the month (remember this can take time to show), or use your debit card when you are near the limit.

The_Boss

Micro-managing expenses? More like being a responsible lendee and monitoring your fnances respnsibly. Sorry if that's too much effort for you.

grumbler

The_Boss wrote: »

Micro-managing expenses?

Yes, micro-managing if the limit is smaller than your normal monthly spending.

Sorry if that's too much effort for you.

I do manage my finances much more closely than the majority of people, but even for me Aqua Reward with their £500 limit is PITA. Although I don't rely on this, but luckily, they do normally reject the transactions taking you over the limit.

YorkshireBoy

Herbalus wrote: »

Look at the terms and conditions. It is probably even on the summary sheet. It will say, in fancier language than this, that every time you go over your limit they will charge you £12, and probably every payment that is refused because it would take you over your limit is £12.

I've no personal experience of incurring these charges, but, unlike unauthorised O/Ds on current accounts, I believe you'll only incur one £12 overlimit fee per statement period on credit cards...no matter how many times you exceed the limit during that period.

OP, I think you only have two options here...

1. Go back to using your debit card...but be aware your bank will charge you if you spend/try to spend money you haven't got. Much the same as your credit card provider has been doing.

2. Use cash!

You'll note I haven't mentioned getting another card with a higher limit. That's because I don't think you'll get one if your CRA files show you've been exceeding your credit limit "pretty much every month".