Tesco Credit card

dannyp123

I was reading that tesco credit card gives 0% on purchases for 16 months.
What exactly does this mean? Does it mean you dont have to pay anything for 16 months on purchases or you pay the minimum?? Please elaborate.

pcguy

It means there is no interest to pay for the period (e.g 16 months). You still have to make the minimum payment each month otherwise you will lose the 0% rate. You must pay off the outstanding balance at the end of the 0% period otherwise they will start charging you interest.

• Make at LEAST the minimum repayments
  
  Ensure you set up a direct debit for at least the minimum repayments as soon as you are accepted. Even though you're paying 0%, you still need to make repayments. If you miss one, you will lose your 0% deal, so the rate will jump and you'll get a £12 charge.
• Clear the card within the 0% period
  
  Go even one month beyond the promotional period and the rate rockets, so calculate the amount needed to clear the balance by then. For example, borrow £600 on a year’s 0% card, divide the spend by the number of months (£600 / 12) to get the monthly repayment - in this case £50 - and set up a direct debit to do that.
• Diarise the end dates
  
  It's vital you make a note of the 0% end dates (or use the Tart Alert) to make sure you pay off the debt in time, or be ready to switch to a new Best Balance Transfer
  deal. If you forget to switch when the deal ends, the interest cost will swiftly outweigh the card's benefit.

More info: http://www.moneysavingexpert.com/credit-cards/best-0-credit-cards