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, whichever is higher.

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: The calculation ensures you always pay at least £5 or 2.5% of your balance, whichever is greater.

3. Importance of Minimum Payment Calculation

Details: Knowing your minimum payment helps with budgeting and avoiding late fees. However, paying only the minimum will increase interest costs and time to repay.

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: Why is there a £5 minimum?
A: This ensures meaningful payments even on very small balances.

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 may lower your score.

Q3: How is interest calculated?
A: Interest is calculated daily on your balance and added monthly. The minimum payment may not cover all interest charges.

Q4: Should I pay more than the minimum?
A: Yes, paying more reduces interest costs and helps pay off debt faster.

Q5: Are there other fees included in minimum payment?
A: If you have late fees or other charges, these may be added to your minimum payment amount.