09 Mar 2018

A question about : How to stop Purchase Interest Charge

Hi
Bit of background - I took out a Tesco cc a few months ago. It had a 3 months interest free offer, however I stupidly didn't pay the balance in time, so incurred an interest charge on the statement after that one. I phoned them and they refunded it, and I paid the statement in full.

This month I have another interest charge purchase interest charge.

I know, because hubby drew cash mistakenly on a previous cc, that to end it we had to stop using the card so that it got to a zero balance or it would never have ended. Is it the same for this sort of interest, or if I clear this month's statement in full will it stop?

Am asking here beacuse it took me ages to get through to Tesco helpline last month and they told me it wouldn't happen this month Also I've read conflicting things about the need to achieve zero balance on purchase interest as opposed to cash withdrawal interest.

Best answers:

  • In normal circumstances you have to have a zero balance for two consecutive months to stop residual interest, therefore pay in full this month as well and the following month should be interest free.
    However, when under a 0% introductory offer it is imperative you pay on time because if you don't it is more than likely that the 0% offer will be immediately cancelled and you will resume paying the normal APR. Did that happen to you ?
    You'd need to explain the purchases/balances
    in more detail to be able to determine whether you've lost your offer or not wnd whether you will continue to pay more interest.
  • Thanks Exel, I had suspected as much. Fortunately we do have another card we can use. We'll just lose out on a few Clubcard points for a while!
    Right, time to tell hubby he needs to reorganise his wallet so he uses the right card (given his previous for mistaking his credit card for debit card.)
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