Credit Card COVID-19 payment break

What you need to know before applying for a payment holiday and what happens next

Payment break applications

You can apply for a payment break until 31 January 2021. Additional criteria applies to customers on existing payment breaks.

    What is a payment break?

    If you have a Tesco Bank Credit Card and have been affected by COVID-19, you can request to pause your next three monthly payments.

      Can I choose the length of my payment break?

      We only offer payment breaks for a duration of three months, but you can still make payments towards your credit card during this time. You can do this in Online Banking or our Mobile App.

        When will my payment break start and what happens next?

        We’ll aim to start this from the statement period in which you submit your application form and the two payments that follow.

        Once you’ve submitted your application, we’ll take care of everything to put your payments on hold, including pausing your Direct Debit if you have one.

        However, if you pay by Direct Debit and your payment is due in the next three days or it has recently been returned unpaid, this payment will still be taken. If you’re unable to make this month’s payment, it may be too late for us to stop your Direct Debit - so you should contact your bank to request that they stop it before it’s taken.

        You can find the payment date of your Direct Debit on your statement.

          What if I’ve already missed a payment?

          If you submit your application form just after you've missed a payment and before you've had your new statement, we'll count the missed payment as the first in your payment break. So, any Late Payment or Returned Item fees incurred will be refunded to you.

          If you've missed more than one monthly payment already, please get in touch now on 0345 671 0677 so we can discuss how best to support you.

            Will I still be charged interest?

            During your COVID-19 payment break interest will continue to be charged on your credit card account balance meaning your overall balance will increase.

            As a result, your minimum payment could be higher when your payment break ends. If it then takes you longer to repay your balance, you could pay more overall for your borrowing.

            Here are some examples of how a payment break might impact your credit card repayments:

              Credit card payment break

              Example 1: Outstanding balance £1800 at 19.9% per annum

              Example 2: Outstanding balance of £1800 at 26.9% per annum

              Minimum payment before payment break



                    Minimum payment during payment break



                          New minimum payment when payment break ends



                                Increase in minimum payment when payment break ends



                                      The examples above are used for illustrative purposes only. Your minimum repayment amounts will depend on your individual circumstances and the minimum repayment terms for the specific credit card you hold.

                                      The examples assume you have no additional spending on your credit card during the payment break and that the total outstanding balance is interest bearing throughout (this means the rate of interest being charged is greater than 0%).

                                        Will I be charged any fees during this time?

                                        Whilst you'll still be charged interest on your account balance throughout your payment break, you will not be charged Late Payment, Over Limit or Returned Item fees.

                                          Will a payment break impact my credit file?

                                          No, your COVID-19 payment break will not be reported as a missed payment to credit reference agencies. But bear in mind, though your credit file will not be directly impacted, lenders may look at other information – such as bank statements – when assessing credit applications.

                                          You may receive letters from us notifying you of outstanding payments, for legal reasons we’re unable to stop these. Rest assured there is nothing you need to do about any ‘missed payments’ related specifically to your COVID-19 payment break.

                                            Can I use continue to use my card?

                                            When you're on a payment break, your credit card account can be used as normal.

                                              Can I make payments during this time?

                                              If you’re able to make any payments towards your credit card during the payment break, no matter how small, it’s worth doing so. It means you’ll pay less interest. You can make payments in Online Banking or our Mobile App.

                                                What about my 0% interest period?

                                                Taking a payment break will not change the terms of any 0% interest offer you currently have.

                                                Due to the high number of requests we’re getting, it may take us some time to process your payment break. This could mean you see that your 0% interest rate has been removed. Don’t worry, this is just temporary – we’ll reapply your 0% interest offer once your payment break is set up. If any interest charges have been applied, we’ll remove them.

                                                  What happens after my break?

                                                  When your COVID-19 payment break is over, your account will go back to your previous payment method. If you have a Direct Debit set up, we’ll restart this for you.

                                                  If you cancelled your Direct Debit, we can’t restart it automatically. You need to set this up yourself before your next statement date. If you don’t do this in time, you may need to make a manual payment. It’s easy to set up and make changes to your Direct Debit securely using Online Banking or our Mobile Banking App.

                                                  Remember, when your payments resume, your minimum monthly repayment amount could be higher than before the break.

                                                  If when your payment break comes to an end you still can’t make your payments, we’re here to help. Visit our page on Further support for our Credit Card customers.

                                                    Is a payment break right for me?

                                                    If you can, take a moment to consider whether a payment holiday is the best option for you. Especially if you're not yet sure how COVID-19 (coronavirus) will impact your finances, or if you're able to keep paying your credit card for now.

                                                    Taking a payment break could mean it will take you longer to repay your balance so you may pay more overall for your borrowing.

                                                      Other things you might find helpful

                                                      Setting up Online Banking

                                                      Learn how to get set-up and about our features

                                                      Setting up on our Mobile App

                                                      Get started with our Mobile App and features we can offer

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                                                      Save money on your bills