Tesco Credit Card

srfudge

TESCO credit card offering 3 months interest free on 'non Teso' purchases and 12 months interest free on 'Tesco' purchasing is a false offer!
Any payment you make to the account will be taken from the 'Tesco' purchases first leaving any 'non Tesco' purchases outstanding. For example, if you purchase £100 of 'non Tesco' items and £100 of 'Tesco' items any payment made clears the 'Tesco' purchases only. After three months you will then be charged interst on the 'non Tesco' purchases. The only way not to be charged interest is clearing the balance every month, and therefore you are not getting any months interest free.
Tesco's response to this is, 'its in the small print, so we can do what we like!'

Bokkens

You will find this applies to all credit cards it is called "the allocation of payments" and is why Martin suggests keeping BT and Purchases offers on seperate cards unless you are financially capable.
You can make use of the offer but you would have to pay it off before the end of the 0% period to avoid the interest as you have pointed out..

CannyJock

Sounds like the card is best if only used for Tesco purchases to get the 12 months - or do what I did and apply for a HSBC 0% purchase card that gives you 12 months 0% on all purchases.

simongregson

All credit cards apart from Nationwide, who apply payments to the highest interest bearing balance first.

Fabstock_2

I have just found out this scam this morning. I first saw interest added in December, when I asked about it, I was told that they would reverse the charge but it was never explained properly. I saw interest charges on my February statement also and after speaking to a manager, I was told that it is a correct charge so tuff luck. When I asked how do I avoid interest charges, I was told that I can either pay off my balance in full or only use the card for Tesco purchases only. I refused to pay the interest so I was told that I can write a letter to their Customer Response Team but basically they would say the same thing. I plan to take this further though because it is a HUGE ripoff, maybe I will contact Watchdog on the BBC.

speedbird1973

Why the vitriol.. everyone bar Nationwide does it.. It's not hidden in the T&C either.. there's a big clear section with bullet points saying "ALLOCATION of PAYMENTS"

refuse to pay the interest and you'll end up defaulting and find it hard to get credit for the next 6 years! You'll also have to deal with debt collectors and potentially get a charge put on your home!

Is it worth it? bearing in mind you're in the wrong!