The supermarket giant is now offering 22 months interest free and a lower balance transfer fee. But how does it check out against the competition?
Tesco has revamped its Clubcard credit card for balance transfers so it charges no interest on balance transfers for 22 months. It’s also slashed its balance transfer fee from 3.95% to 2.9%.
This change puts its joint top of the best buy tables (if you ignore HSBC’s 23-month Visa card, which is only open to existing customers) with Barclaycard’s 22-month Platinum card.
Both cards now have the same balance transfer period and the same balance transfer fee of 2.9% of the balance you’re transferring. However, they differ in a couple of other significant ways.
The Tesco card offers Clubcard points on your spending (providing you have credit available). You get one Clubcard point for every £4 you spend anywhere and five points for every £4 you spend at Tesco or on Tesco Fuel.
For many people, you probably shouldn't focus too much on the Clubcard points. That's because if you're going to transfer a large pile of debt from other credit cards, it's best to keep your other spending as low as possible.
But if you're very confident that you can repay the debt over 22 months, and you're a Tesco shopper, the Clubcard points are attractive. The card also comes with a six-month interest-free period on purchases but don't be tempted to overspend. Try to pay your spending off in full each month.
If you're not a Tesco shopper, the discounted balance transfer fee could swing it for you. Let's have a look at how the fees compare to the other market-leading cards at the moment.
How the fees compare
Below are the fees charged by the balance transfer cards offering the longest 0% periods, and the fee you’ll face on a £2,000 balance transfer
|
Card |
0% period |
Balance transfer fee |
Fee paid on transfer of £2,000 |
|
HSBC Visa* |
23 months |
3.3% |
£66 |
| Barclaycard 22-month Platinum balance transfer card | 22 months | 2.9% | £58 |
| Tesco Clubcard credit card | 22 months | 2.9% | £58 |
|
22 months |
3.2% |
£64 |
|
|
22 months |
3.2% |
£64 |
|
|
22 months |
3.5% |
£70 |
|
| Barclaycard 21-month Platinum balance transfer card | 21 months | 2.6% | £52 |
*Only available to existing current account holders
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