The supermarket giant now offers the cheapest 0% balance transfer card out there.
Tesco has launched two new 0% balance transfer credit cards. The Clubcard credit card for Balance Transfers has a 30-month interest-free introductory period while the Clubcard credit card with Low Balance Transfer Fee boasts the lowest balance transfer fee on the market right now.
Both offer good opportunities to get on top of your debt, particularly if you have debts on a Barclaycard.
Let’s take a look at what they offer.
Clubcard for Balance Transfers
The Clubcard credit card for Balance Transfers offers two and a half years with no interest to pay, in return for a 2.9% fee of the debt you transfer. So if, for example, you transfer £2,000 of debt you’ll pay £58.
The card has a representative APR (the annual combination of interest and other charges) of 18.9%. You can earn Clubcard points on any spending, although it’s sensible not to spend on a balance transfer card and just use to pay off your debt.
To qualify for the Clubcard for Balance Transfers, you’ll need a good credit history and a minimum income of £5,000.
This card has the second-longest 0% balance transfer period out there, behind Barclaycard.
Here’s how it compares to the rest of the cards offering lengthy 0% periods.
|
Credit card |
0% period on balance transfers |
Balance transfer fee |
Cost of transferring £2,000 balance |
Representative APR |
|
31 months |
2.99% |
£59.80 |
18.9% |
|
|
30 months |
2.89% |
£57.80 |
18.9% |
|
|
30 months |
2.90% |
£58 |
18.9% |
|
|
30 months |
3% |
£60 |
18.9% |
|
|
HSBC Credit Card* |
30 months |
3.3% |
£66 |
18.9% |
|
29 months |
2.89% |
£57.80 |
18.9% |
|
|
29 months |
2.99% |
£59.80 |
18.9% |
|
|
29 months |
3% |
£60 |
18.9% |
*HSBC current account customers only
Compare the 0% cards with the longest balance transfer periods
Clubcard with Low Balance Transfer Fee
[SPOTLIGHT]Meanwhile, the Clubcard credit card with Low Balance Transfer Fee offers 12 months with no interest to pay on your debts. In return, you’ll only have to pay a 0.65% fee, which is 0.05% less than its nearest competitor. So, for example, if you had £2,000 of debt to pay off it would cost you £13
The Clubcard with Low Balance Transfer Fee also offers a 12-month interest-free period on purchases, although again if you’re trying to pay off debts you’re better off not spending on it. You'll earn Clubcard points on any spending.
Again to qualify for this card, you’ll need a good credit history and a minimum income of £5,000.
Here’s how the Clubcard with Low Balance Transfer Fee squares up to the competition.
|
Credit card |
0% period on balance transfers |
Balance transfer fee |
Cost of transferring £2,000 balance |
Representative APR |
|
12 months |
0.65% |
£13 |
18.9% |
|
|
15 months |
0.7% |
£14 |
17.9% |
|
|
15 months |
0.7% |
£14 |
17.9% |
|
|
15 months |
0.8% |
£16 |
17.9% |
|
|
15 months |
0.8% |
£16 |
17.9% |
|
|
17 months |
0.9% |
£18 |
18.9% |
|
|
18 months |
1.49%* |
£29.80 |
17.8% |
|
|
24 months |
1.5% |
£30 |
18.9% |
|
|
24 months |
1.5% |
£30 |
17.9% |
|
|
24 months |
1.5% |
£30 |
17.9% |
*Transfer must be minimum of £2,500
As you can see, the Clubcard with Low Balance Transfer Fee is the market leader on fee, although for a great combination of 0% period and fee the Halifax 24-Month Low Balance Transfer Fee, Lloyds Platinum 24-Month MasterCard and Bank of Scotland Platinum 24-Month MasterCard are well worth a look.
It's important to make sure you can repay your debt within the 0% period, rather than just going for the card with the cheapest fee. Otherwise, you could end up paying interest when the 0% period ends.
You should make sure you make at least the minimum payment each month, otherwise you'll not only get a black mark on your credit report, but you'll lose your 0% period too.
If you're struggling with credit card or any other debts, there is free, confidential help out there. You can find out more information on this in Where to get free debt advice.
Compare 0% balance transfer credit cards