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0% APR Credit Card Minimum Payment

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0% APR Credit Card Minimum Payment

Hi there,

 

Looking at getting a 0% APR credit card, but a bit confused by how the minimum payments work?

 

In the T's and C's it says:

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.

 

So say if I borrowed £500, could someone explain how the minimum payment works for this and what the default fees are?

 

Cheers,

 

Josh

1 REPLY 1
Your Community Expert
Your Community Expert

Re: 0% APR Credit Card Minimum Payment

@jbuxton On an account where there is no interest, your minimum payment would be 1% of the statement balance. This means that any sum below £2500 would have a minimum payment of £25.

 

A default fee is the name given to late payment or over limit charges of £12 and would only be applied in the event of non-payment or exceeding your credit limit – Joe