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Tesco Pricing Policy

The APR and interest rates we offer are determined by an analysis of your application details along with your credit and repayment history (as verified by independent credit reference agencies).

This analysis may mean that you don't receive the advertised representative APR as detailed in the Summary Box below. Over half of our customers do receive our advertised representative APR. If you don't receive the representative APR, the maximum APR you will receive is 21.9%.

All accepted customers will receive the introductory offer of 0% for 9 months on balance transfers and 0% for 15 months on purchases.

Summary Box

The information contained in this table summarises key product features and is not intended to replace any terms and conditions.

APR representative 16.9%APR (variable)
Rates from 16.9%APR to 21.9%APR depending on individual circumstances
Interest RatesIntroductory RateMonthly RateAnnual Rate Effective
Purchases 0% for 15 months from account opening 1.313% to 1.667% 16.945% p.a. to 21.944% p.a.
Cash Advances n/a 1.873% 24.942% p.a.
Balance Transfers 0% for 9 months from account opening 1.408% to 1.825% 18.268% p.a. to 24.238% p.a.
Money Transfers n/a 1.313% to 1.667% 16.945% p.a. to 21.944% p.a.
Buy Now Pay Later purchase transactions 0% for 6 months from date of transaction 1.313% to 1.667% 16.945% p.a. to 21.944% p.a.
Interest Free Period
  • Maximum 51 days for purchases if you pay your balance in full and on time, and have paid the previous month's balance in full and on time.
  • There is no interest free period on cash advances or money transfers.
  • Interest free period on balance transfers only applies during the introductory period.
Interest Charging Information

You will not pay interest on new purchases if you pay your balance in full and on time. Otherwise, the period over which interest is charged is as follows:

ServiceFromUntil
Purchases From date debited to your account Until repaid in full¹
Cash advances From date debited to your account Until repaid in full¹
Balance Transfers From date debited to your account Until repaid in full¹
Money transfers From date debited to your account Until repaid in full¹

If the account is not fully cleared, interest will be charged on the average daily balance until full payment is made and credited to your account. Therefore, the longer you take to make a payment, the more interest will be charged.

¹ If you pay the balance in full, any interest charge for the period from the previous statement to the date of full repayment will be debited the following month.
Allocation of Payments

When you pay us we use it to pay off:

  • First those items which attract the highest interest rates.
  • This will normally be in the order of interest and fees followed by transaction type of cash advances, standard rate balance transfers, purchases and money transfers, special offer rates.
  • If there is more than one item at the same rate we pay off the item at the rate that ends first.
  • If your account is in arrears, we will pay off the arrears on your account (starting with the oldest) before we put it towards the amount due from your most recent statement.
  • If you have Buy now Pay Later special offer items, we will pay these off after we have paid off everything else on your account.
Minimum Repayment

Your minimum payment will be the greater of:

 

  • the total of all interest and default fees charged on your statement plus 1% of the new balance shown on your statement (excluding 'Tesco Buy Now Pay Later' special offers) plus any arrears carried over from your previous statement; or
  • £25 plus any existing arrears carried over from your previous statement; or
  • the amount you owe over your credit limit which includes any over limit fees.

 

If you only make the minimum payment it till take longer and cost more to pay off.
Credit Limit
Minimum credit limit £250
Maximum credit limit Subject to status
Fees

No annual fees.
Charges
Cash advances 3.0% handling fee, minimum of £3.00
Balance transfers 2.9% handling fee during the first 9 months from account opening
Foreign exchange 2.75% exchange fee (including purchases of foreign currency and Travellers Cheques)
If we return a promotional cheque unpaid £12.00
Default Charges
Over-limit fee £12.00
Late Payment fee £12.00
Cheque (payable to us) or Direct Debit cannot be paid £12.00

If you have any queries on the above, or require any further information, simply call 0845 300 4278 and one of our advisors will be pleased to help you.

To find out more about how interest and fees are applied to your account please read the General Conditions [PDF, 41KB], SECCI [PDF, 45KB] and Important Information about Tesco Clubcard Credit Card [PDF, 77KB].

Tesco Bank subscribes to the Lending Code. We recommend you read A guide to the Lending Code for Customers. Full details of the code are available from the Lending Code Standards Board website.

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