Thinking about the tesco credit card for a single purchase

m2787

Hello all.

I am currently looking into applying for the tesco 19 months 0% credit card to purchase an engagement ring. Forgive me if this is a silly question but does the 0% rate apply as soon as you are awarded the card or does it come into effect once you have made a purchase? Also the interest after this free period is roughly 19%. Is this percentage that of the amount you have borrowed?

I appreciate these questions may have obvious answers but I have until now kept away from using one.

Thank you in advance.

tom222

0% will be in place from start date until the 19 months is up, providing you make at least the minimum payment every month.

As long as you pay the whole thing off before the 0% term is up, you will pay no interest.

Ebe_Scrooge

tomcarlin wrote: »

... providing you make at least the minimum payment every month.

A very good point made by Tom, and worth highlighting. Most 0% offers will cease immediately if you miss a payment, and you'll revert to the standard APR.

Set up a Direct Debit to pay at least the minimum amount every month. Set it to pay 2 or 3 days before the "payment due by" date. Particularly in the first month, check very carefully that the DD has gone through successfully. If it hasn't, then this gives you time to make a manual payment and sort out the DD ready for next month.

CLAPTON

m2787 wrote: »

Hello all.

I am currently looking into applying for the tesco 19 months 0% credit card to purchase an engagement ring. Forgive me if this is a silly question but does the 0% rate apply as soon as you are awarded the card or does it come into effect once you have made a purchase? Also the interest after this free period is roughly 19%. Is this percentage that of the amount you have borrowed?

I appreciate these questions may have obvious answers but I have until now kept away from using one.

Thank you in advance.

to add

after the 19 month period, you pay interest on the balance at that time (if any)
so e.g. if you had 500 still to pay after 19 months then your month interest would be 500 x 19%/12 = £7.92 per month

m2787

Thank you all so much for much replying .

Definitely helped me out

m2787

actually forgot to ask if someone could explain the minimum payment aspect of the Tesco card. is it literally just 1% of the amount I borrow?

CLAPTON

m2787 wrote: »

actually forgot to ask if someone could explain the minimum payment aspect of the Tesco card. is it literally just 1% of the amount I borrow?

no, it is 1% of the monthly balance for the 19 months

if you only pay that then you will still have a large balance at the end of 19 months

m2787

so say for example I owe £1000 at the end of the month the minimum would be £10?

I intend paying a lot more than that, was just getting the concept in my head.

thebritishbloke

m2787 wrote: »

so say for example I owe £1000 at the end of the month the minimum would be £10?

I intend paying a lot more than that, was just getting the concept in my head.

Yes.

As has already been said, but I just feel the need to reiterate, set up a direct debit for the minimum payment. When you want to pay more every month, you can login and pay online, or set up a standing order to pay X amount per month etc.

Ebe_Scrooge

Of course, the real MSE way to do it is :

1. Work out how much you'd need to pay each month to clear it by the end of the 0% rate.
2. Pay the minimum each month, + £1 ( looks good on your credit history ).
3. Pay the balance of that month's payment into a separate account that pays interest.
4. Just before the 0% period is up, use your savings to pay it off in full.

OK, the interest you earn on your savings account is not going to amount to much in the current climate, but it may pay for a takeaway and a bottle of wine, and you've lost nowt

CLAPTON

Ebe_Scrooge wrote: »

Of course, the real MSE way to do it is :

1. Work out how much you'd need to pay each month to clear it by the end of the 0% rate.
2. Pay the minimum each month, + £1 ( looks good on your credit history ).
3. Pay the balance of that month's payment into a separate account that pays interest.
4. Just before the 0% period is up, use your savings to pay it off in full.

OK, the interest you earn on your savings account is not going to amount to much in the current climate, but it may pay for a takeaway and a bottle of wine, and you've lost nowt

very approximately that would be per 1,000

1,000 x 1.5% (interest rate) x 19/12 = £23.74 max ... yes a take away

and why not have a takeaway for nothing ?