Tesco Credit Card

rcjm

I have had my tesco c/c for a few years now. As I only work part-time I have a pretty low limit - under £1000. However since I took out this card, I use it for all my purchases, including paying monthly rent, to get the clubcard points.
As the month goes on and as my balance increases, I make payments to the credit card, at least 4 each month, in order to release the amount of credit available on it.
I have noticed my available credit sometimes 'sticking', despite making payments to the card, it can sometimes take up to 7 days for my available credit to increase.
When I have enquired about it, I have been advised that this is because I have made a large payment to the account, and it takes longer to clear. I have subsequently noticed that any payments I make to the card, over say £400, take longer to clear than smaller payments for under £300.
Last week I noticed this happening and yesterday I noticed online that my available balance was 0. When I phoned them to ask why, I was advised that as I had overpaid my card in the last month they had put a hold on the account. That if I regularly overpay then this will happen and the card may be withdrawn.
She said I had paid more than £1000 to the credit card in the last 4 weeks, which is true, but I had spent way more than £1000 in same period and at no point had I put my account in credit above my limit. My spending and subsequent payments to this card this month was no different to my spending over the course of the last few years.
She said my credit limit is there for a reason and that I can't treat it like a current account.
Just wondering if anyone else encountered this?:(

milky1991

I'm certainly no expert but it sounds like their annoyed cos they aren't making any interest off you.
I would vote with my feet apply for another credit card with a 0% on purchases and tell Tesco to shove their card where the sun don't shine

I have a virgin one card that I have worked out if I pay 66p extra every day including the fixed minimum payment the balance will be clear when the 0% runs out so I pay 66p every day online.

Mind you I never spend on it.

eskbanker

rcjm wrote: »

She said I had paid more than £1000 to the credit card in the last 4 weeks, which is true, but I had spent way more than £1000 in same period and at no point had I put my account in credit above my limit

Not sure if you're saying what I think you're saying but you're not meant to put it into credit at all, i.e. the limit for being in credit should be regarded as being £0 rather than £1,000! Did the scheduling and/or clearance of your payments mean that you went into a positive balance significantly or more than once, as this may be in breach of the product Ts & Cs (it is with most cards) and explain why they've taken the action they have....

rcjm

eskbanker wrote: »

Not sure if you're saying what I think you're saying but you're not meant to put it into credit at all, i.e. the limit for being in credit should be regarded as being £0 rather than £1,000! Did the scheduling and/or clearance of your payments mean that you went into a positive balance significantly or more than once, as this may be in breach of the product Ts & Cs (it is with most cards) and explain why they've taken the action they have....

As far as I know I didn't go into a positive balance. If, say I spent approx £450, so my balance is now £450, I would make a payment for say £300. Then maybe a week later, but before that has cleared, I have spent another £400, so I make another payment of £200. That's what I've been doing for last few years. With such a low balance on this card, I would be at my limit within 2/3weeks if I didn't pay it this way. The only reason I use this card is to rack up the clubcard points. There's no 0% on this card.

john1002

I think you have been lucky in that tesco are giving you the chance to change your ways, because if you don't then you risk loosing the facility, your only solution if you want to rack up those points would be to try and get them to increase your limit to one that would allow you to spend what you do but without injecting money into the account untill the required payment date.

HTH

John

joroshe

Tesco Bank have a policy that if you pay in over 110% of your credit limit within a billing cycle then funds will be placed on hold-for fraud purposes

ashy78

I applied for a tesco card earlier.

I was offered £600 limit at 23.9% but it said they needed to do further checks?.

What is the likely hood of the card dropping?.

Other than cifas/national hunter, work checks what else is involved?.

vns

ashy78 wrote: »

I applied for a tesco card earlier.

I was offered £600 limit at 23.9% but it said they needed to do further checks?.

What is the likely hood of the card dropping?.

Other than cifas/national hunter, work checks what else is involved?.

I had the same thing, even though I had a good credit rating - I wouldn't worry too much, just give it a week or so, then if you still don't hear anything give them a call.

Please also check your inbox - I've sent you something slightly off topic.

VNS

The_Boss

vns wrote: »

I had the same thing, even though I had a good credit rating

You don't know how Tesco Bank scored your application though so a "good credit rating" means little.

pacontracting

It's because you are making multiple payments onto the card during the month. It costs Tesco money to process these payments and I suspect their systems are not geared up to process so many payments into the card.

They basically want you to wait for your statement and make one payment to clear it. If the limit is too low, then ask to get it increased.

The_Boss

pacontracting wrote: »

It's because you are making multiple payments onto the card during the month. It costs Tesco money to process these payments and I suspect their systems are not geared up to process so many payments into the card.

They basically want you to wait for your statement and make one payment to clear it. If the limit is too low, then ask to get it increased.

Really? Seems a little bizarre to me.