Tesco launches fee-free 12-month 0% balance transfer card
Tesco has launched a balance transfer credit card with no interest for a year and no transfer fee to pay.
Tesco has launched a new Clubcard Credit Card, offering 12 months of 0% interest on balance transfers, but without charging a transfer fee.
Because the new card doesn't charge interest on balance transfers it's worth a look if you need a bit of help paying off existing credit card debt. And it's completely unique - no other card offering an interest-free period doesn't charge a transfer fee!
What's more, you won't pay interest on purchases for a year either!
There is also the added bonus for Tesco shoppers of collecting Clubcard points when using it. When shopping in Tesco or on Tesco petrol you’ll receive five points for every £4 you spend and you'll get one point for every £4 spent elsewhere.
How does it compare?
If you don't have a huge amount of existing credit card debt that you need help to clear then a card like the new Tesco Clubcard Credit Card gives you a decent amount of time to pay it off, without having to pay a transfer fee.
You can get longer 0% period though, for only a small fee, as the table below details
|
Balance transfer card |
Balance transfer fee |
0% period on balance transfers |
0% period on new purchases |
Fee paid on £2,000 balance transfer |
|
1.00% |
15 months |
15 months |
£20.00 |
|
|
1.00% |
15 months |
3 months |
£20.00 |
|
|
1.00% |
13 months |
6 months |
£20.00 |
|
|
Royal Bank of Scotland Platinum Low Balance Transfer Fee Credit Card |
1.00% |
13 months |
6 months |
£20.00 |
|
1.28% (for June) |
16 months |
3 months |
£25.60 |
Cards with a low fee typically have a much smaller 0% period.
But if you need a lot longer than even the 16 months offered by the Barclaycard above, there are other options around. The market-leader, for example, from Barclaycard has a 27-month 0% period, but a fee of 2.98%.
Our comparison tables show the full picture but here I’ve listed the top five cards with the longest 0% periods.
|
Card |
0% period |
Balance transfer fee |
Fee paid on £2,000 transfer |
Representative APR after 0% period ends |
|
27 months |
2.98% (for June) |
£59.60 |
18.9% |
|
|
26 months |
2.65% |
£53 |
18.9% |
|
|
26 months |
2.65% |
£53 |
18.9% |
|
|
26 months |
2.99% |
£59.80 |
17.9% |
|
|
25 months |
2.04% (for June) |
£40.80 |
18.9% |
How to use a balance transfer card
When you take out one of these cards, the main aim should be to clear the debt in the 0% period. If you don't then you'll have to start paying interest when the 0% period ends. At this point it may be possible to transfer the debt onto a new card but there is no guarantee you’ll be accepted.
These cards have a higher standard interest rate than most credit cards and therefore interest payments can negate any savings you’ve made in the 0% period.
Missing a payment is also dangerous as it can cut the 0% period short, result in a fine or even leave a permanent mark on your credit score.
More on credit cards:
The best 0% balance transfer credit cards
Barclaycard cuts credit card fees in June sale
10 astonishing lies about credit ratings
The best low-fee balance transfer credit cards
How to build an excellent credit history
The best non-Barclaycard balance transfer credit cards
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Comments
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Cool name 'The Bank Manager' - thanks very much for this information, just what I wanted.
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Hi Loner, The T's & C's suggest that for; Credit limits, the minimum is £250 and it's income based, but you must be on a minimum of £5,000pa Balance Transfers, a 0% handling fee applies during the first 12 months from account opening. To me, these read that for the former, you can get a suitable means tested limit based upon earnings and other declared debt, and for the latter, your 12 months are fixed from the date the account is opened (say June 2013), but during that period, you can transfer other debts in and pay 0% on them, until the initial 12 month timeframe expires (say June 2014).
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Hi, This sounds like a great deal with no fee. I have an idea how 0% balance transfers but have a couple of queries. First, with the Tesco card described here, have they released it just so you can only get a minimal credit limit, or will that still be based on personal circumstances, earnings etc? Second, generally, and with this card, when you transfer a balance on to one of these cards, can you only do a transfer when you take the card out, or can you transfer more balances in the future to the same card? I bow to your greater knowledge. Thanks, Loner
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15 June 2013