0% APR Credit Card Minimum Payment

  • jbuxton's Avatar
    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

  • Verified Answer

    Anonymous's Avatar
    Verified Answer
    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