Money Transfer Interest Rate

  • ClaireRose22's Avatar
    Fresh Eyes

    I’m aiming to pay off my all my credit cards by the end of the year, and so I’m trying to understand the different interest rates and prioritise them etc.

    For my Tesco Bank account, in the summary box on my statements I’m being charged 2.207% under ‘Money Transfers’ - what is this please? I made a balance transfer to this card months ago from a previous debt - but I’ve not done any transfers or purchases since then. I understand I’m going to be charged an interest (as my interest free period expired months ago) but why is this a money transfer interest?

    It’s so frustrating when you’re paying £80 minimum payment, and then get charged £40 interest. Feels like I’m fighting a losing battle.

    I’ve tried getting another 0% balance transfer card but not being accepted anywhere at the moment!

    Please help!
  • 5 Replies

  • ChristopherP's Avatar
    Your Community Expert
    @ClaireRose22 Hey there, thanks for getting in touch!

    This would suggest that a Money Transfer has been processed on the account at some stage.

    We will need to check over your account for this, so please send us a private message.

    If you need to ask a question about a Tesco Bank product, you can make a post in Help & Support here

    Also, feel free to Introduce Yourself!
  • Saffron1's Avatar
    Fresh Eyes
    It’s really frustrating - 0% transfers are a great way to pay off debt without the interest creeping in. Tesco have pulled mine, although I have a large amount of available credit. I do the regular shuffle across cards to avoid the interest and keep paying off, but I can’t do that now and I am incurring interest on 2 cards. I rang Tesco Bamk but apparently nobody on the entire building can override the system - 0% offers are randomly offered. Like you, I find that the offers on new cards aren’t forthcoming. It seems like a catch 22 position. I’m using 0% to help me pay the debt off but they won’t offer it to help me continue doing it and avoid further debt.