1. What is Tesco Credit Card Minimum Payment?

The Tesco credit card minimum payment is the lowest amount you must pay each month to keep your account in good standing. It's calculated as the greater of 2.5% of your balance or £5.

2. How Does the Calculator Work?

The calculator uses the Tesco minimum payment formula:

Where:

• \( MP \) — Minimum payment (GBP)
• \( P \) — Principal balance (GBP)
• 2.5% — Percentage of balance required
• £5 — Minimum fixed amount

Explanation: You'll always pay at least £5 or 2.5% of your balance, whichever is higher.

3. Importance of Minimum Payment Calculation

Details: Understanding your minimum payment helps with budgeting, but paying only the minimum will result in paying more interest over time.

4. Using the Calculator

Tips: Enter your current credit card balance in GBP. The calculator will show your required minimum payment.

5. Frequently Asked Questions (FAQ)

Q1: Is there a maximum minimum payment?
A: No maximum, but it will always be at least £5 or 2.5% of your balance.

Q2: Does paying minimum affect my credit score?
A: Paying at least the minimum on time helps maintain good credit, but high balances relative to your limit can lower your score.

Q3: How is interest calculated on remaining balance?
A: Interest is calculated daily based on your APR and added to your next statement.

Q4: Can I pay more than the minimum?
A: Yes, paying more than the minimum reduces interest charges and pays off your balance faster.

Q5: What happens if I miss a minimum payment?
A: You may face late fees, increased APR, and negative marks on your credit report.