First time CC query

richslade

I have just got a tesco 19 mnth 0% spending CC. I need to pay for some building work - i have the account details of the builder. If i pay for this from the CC online account will it be a 'money transfer' rather than a purchase and therefore be subject to interest?

Daft Q, but i've never had a CC before...:o

dj1471

Yes.

But not many cards actually allow this.

richslade

Oh right. So, basically, a purchase is anything i use either the card details online for, or via a card machine in a shop?

I realise these are incredibly stupid questions...

dj1471

Yes.

If your card allows you to transfer money to a bank account it will be a cash advance for which you'll have to pay fees plus interest. It's the same as using it to get cash from a cash machine.

richslade

Thanks dj1471.
Much obliged.

thebritishbloke

dj1471 wrote: »

Yes.

If your card allows you to transfer money to a bank account it will be a cash advance for which you'll have to pay fees plus interest. It's the same as using it to get cash from a cash machine.

Unless it's a card that offers money transfers (main people who offer this are MBNA, Virgin, BarclayCard). This usually incurs a 4% fee, and then it's 0% for X Months.

YorkshireBoy

richslade wrote: »

Oh right. So, basically, a purchase is anything i use either the card details online for, or via a card machine in a shop?

I realise these are incredibly stupid questions...

There is a workaround, if you can be bothered to jump through a few hoops.

Buy Sterling travellers cheques from Tesco Travel Money and pay them into your current account*, from where you can then draw funds to pay the builder.

There's a 1.25% fee, and the amount you can get will depend on your 'cash limit' (usually 50% of your credit limit).

Tesco Credit Cards
If you pay with your Tesco Credit Card, there's no cash advance fee (excluding Tesco Business Credit Card) or card handling fees. Buying foreign currency with a Tesco Clubcard Credit Card from Tesco Travel Money will count towards a customer's cash limit but will be treated as a purchase transaction and will still be charged interest at the purchase interest rate.


https://travelmoney.tescobank.com/tb/terms-and-conditions.aspx

* You should check your bank will allow this (some don't) before purchasing them!