New to credit cards

emmah56

Hi, so I am new to credit cards.

I took out the 0% tesco credit card to pay for a bulk of things that all needed paying at the same time i.e. dentist bills, car insurance and tax etc. What I want to know is how they work out my monthly minimum repayments? Now that all my stuff has been paid for i have worked out how much i can afford to repay monthly. But if i set up a direct debit to pay this each month will i have to pay minimum monthly repayments on top??

Its more complicated than its worth lol

please help

YorkshireBoy

The minimum payment calculation is shown in your T&Cs, in your summary box, on their website, and on the reverse of each and every statement.


It's interest plus 1% of the balance, or £25...whichever is the greater.


What this means during your 0% intro period is that it'll be £25 a month until your balance exceeds £2,500...after which it'll be 1% plus interest.


I'm not sure Tesco do a fixed amount (known as 'static') DD, possibly just minimum or full? You can pay extra by SO or FP, but sometimes this will reduce/cancel the amount the DD was to take.

redpete

Best to set up a DD for the minimum payment each month (you can instruct Tesco to do this for you). Each month's statement will tell you what the next month's minimum payment (and therefore the DD) will be. You can then pay any surplus by online payments from your bank account.

20aday

YorkshireBoy wrote: »

The minimum payment calculation is shown in your T&Cs, in your summary box, on their website, and on the reverse of each and every statement.


It's interest plus 1% of the balance, or £25...whichever is the greater.


What this means during your 0% intro period is that it'll be £25 a month until your balance exceeds £2,500...after which it'll be 1% plus interest.


I'm not sure Tesco do a fixed amount (known as 'static') DD, possibly just minimum or full? You can pay extra by SO or FP, but sometimes this will reduce/cancel the amount the DD was to take.

I'm a member of Tesco Bank and just logged in to have a look at the Direct Debit options.

They do indeed offer a "static" DD option along with the "minimum" and "full balance" direct debits.

20aday

emmah56 wrote: »

Hi, so I am new to credit cards.

I took out the 0% tesco credit card to pay for a bulk of things that all needed paying at the same time i.e. dentist bills, car insurance and tax etc. What I want to know is how they work out my monthly minimum repayments? Now that all my stuff has been paid for i have worked out how much i can afford to repay monthly. But if i set up a direct debit to pay this each month will i have to pay minimum monthly repayments on top??

Its more complicated than its worth lol

please help

I've got a 0% Tesco Credit Card too; mine is set up for the "minimum" payment (which you must pay to avoid losing your 0% deal) and always make further payments from my bank to reduce the balance.

As YorkshireBoy mentioned, the minimum is always £25.00 (depending on your balance.)