Credit Card Interest

Oct98

I have transferred a balance to a Tesco Credit card with 0% interest. However I have just received my first statement and they have charged interest on the Balance Transfer fee, treating it as a 'purchase'.
I have never experienced this before and wondered if they are allowed to do this. If I don't pay in full and they treat my payments as paying off the transfer amount before the transfer fee I will incur interest every month until the amount is paid in full.

Aquamania

Oct98 wrote: »

I have transferred a balance to a Tesco Credit card with 0% interest. However I have just received my first statement and they have charged interest on the Balance Transfer fee, treating it as a 'purchase'.
I have never experienced this before and wondered if they are allowed to do this. If I don't pay in full and they treat my payments as paying off the transfer amount before the transfer fee I will incur interest every month until the amount is paid in full.

What do the terms say with regards to the BT admin fee?

I'm pretty sure any credit card today pays off the highest interest charges first (after any default charges).

I suggest you call the card provider and ask

forgotmyname

Charged interest or just charged for the balance transfer which is normal.

Can be anything but usually upto 3% of the transfer amount.

How long have they been charging?

grumbler

Yes, they are allowed.

Just pay the amount exceeding the BT fee plus the interest and the interest will stop.

zerog

Is this a new thing? I wasn't charged any interest by Tesco on my BT fee last Jan.

mjm3346

They used to do it in the old days when the payments would be applied to the 0% balance first but they will not make much out of it now repayments are applied to the highest interest items first.

Rosco32

I took a Tesco card out in July 2013 and did a BT, wasn't and haven't been charged any interest on this.