Tesco 25mth transfer 16mth purchace

Phil_68

Hi all, I have just looked at getting a Tesco card to transfer the balance (£1500) from another card. The 25 month interest free deal is good enough for me. It also has a 3 month interest free on the purchases.

I want to pay off £100 per month.

However, I called to ask where my payments will come off, (transfer or balance) and it will come off the highest balance. This will obviously be the balance transfer, so if I spend on the card eg £200 in the first month, I will be paying interest from month 4 on the £200 for around 12 months (as long as I don't use it again)

Is this a common back door way of earning interest?

They have a 16 month interest free deal on a purchase card, so it would make sense to get 2 cards, 1 in my wife's name for the purchases, 1 in my name for the transfer.

Is my thinking right here??

Phil.

[Deleted User]

You were advised wrongly. It'll come off the shorter purchases term.

When you pay us we use it to pay off:
• First those items which attract the highest interest rates.
• This will normally be in the order of interest and fees followed by transaction type of cash advances, standard rate balance transfers, purchases and money transfers, special offer rates

• If there is more than one item at the same rate we pay off the item at the rate that ends first.

Phil_68

Thanks, but getting the 2 cards will give me 16 months on interest free for purchases and 25 month for transfer. Will do the transfer and cut up the card, use the purchases card for points and free buying

Phil.

flogging_molly

ZX is right. The only thing to be mindful of is carrying a balance for purchases after the three months. Interest is billed on these straight away because, having a BT you will not be paying off the full statement balance each month in addition it must be a card in your name for the BT to be permitted by Tescobank.

Payments work by being alocated to the offer which ends soonest. I have a friend who works there.