New Tesco credit card has lowest balance transfer fee
Tesco is now also topping the low balance transfer credit card fee table after launching a new card.
Tesco has launched the Clubcard with Low Balance Transfer Fee, which offers a market-leading 0.9% balance transfer fee and no interest to pay on both balance transfers and purchases for 12 months.
This card replaces Tesco’s Clubcard with No Balance Transfer Fee card, which was withdrawn after only a few weeks. It offered the same mix of balance transfer and purchase period, but with no balance transfer fee to pay.
This is how the new Low Balance Transfer Fee card compares to the other leading cards with small balance transfer fees.
|
Credit card |
0% balance transfer period |
Balance transfer fee |
Cost of transferring £2,000 debt |
Representative APR when 0% period ends |
|
12 months |
0.9% |
£18 |
16.9% |
|
|
15 months |
1% |
£20 |
17.9% |
|
|
15 months |
1% |
£20 |
17.9% |
|
|
13 months |
1% |
£20 |
17.9% |
|
|
13 months |
1% |
£20 |
18.9% |
|
|
13 months |
1% |
£20 |
18.9% |
The Tesco card doesn’t offer the top combination of 0% period and fee on balance transfers. That honour is currently shared by the Halifax All In One Online card and the Lloyds TSB Platinum 15-Month Balance Transfer card at 15 months apiece.
But if you’ve already got debts on a card from Halifax or Lloyds TSB, the Tesco card is definitely a good option for paying them off.
If you think you'll need longer to pay off your debts, take a look at the The best 0% balance transfer credit cards which features cards with 0% periods lasting up to 27 months.
Clubcard points on spending
However, an added attraction of the Tesco card is the ability to earn Clubcard points on your everyday spending. If you use it to pay for your Tesco shopping or fill up at a Tesco petrol station, you’ll earn five points for every £4 you spend. You’ll also earn one point for every £4 you spend elsewhere.
If you’re tempted to spend on the card, just be very careful and try to repay your balance in full each month (if it helps, think of it as a debit card rather than a credit card). It would be a shame to pay off your past credit card debts after a year, only to find you have racked up a new set.
You must make the minimum repayment on the card each month or your 0% period could be withdrawn.
All of the cards featured in this article are only available to people with good credit ratings. If yours could do with some improving, have a read of How to build an excellent credit history.
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