You can now have a year to pay off your debts with no interest and no fee to pay.
Tesco Bank has increased the 0% period on its Clubcard credit card with No Balance Transfer Fee from 10 months to a year.
The change means it now offers a year to pay off your debts from other credit cards completely free of charge.
Let’s take a more detailed look at what the card offers and how it compares to the other low-fee balance transfer cards out there right now.
Clubcard with no balance transfer fee
As well as a year with no interest to pay on your debts, the Clubcard credit card with No Balance Transfer Fee also offers a 12-month 0% period on purchases. You can earn one Clubcard point for every £4 you spend on the card. However, this card is better used as a debt-busting tool.
If you want a decent 0% period on spending, plus the chance to earn Clubcard points too, take a look at the Clubcard credit card for Purchases, as this offers 19 months free of interest.
If you don’t pay off your debt in the 12-month period, you’ll start being charged interest with an APR of at least 18.9%.
How this Tesco card compares
The Clubcard credit card with No Balance Transfer Fee is by far the longest 0% balance transfer card available at the moment that doesn’t charge a fee.
However, as the table below shows, you can get a far longer 0% period if you’re willing to pay for it.
|
Credit card |
0% period |
Balance transfer fee |
Fee paid on £2,000 transfer |
Representative APR after 0% period ends |
|---|---|---|---|---|
|
12 months |
None |
£0 |
18.9% |
|
|
15 months |
0.55% |
£11 |
15.9% |
|
|
15 months |
0.65% |
£13 |
17.9% |
|
|
17 months |
0.9% |
£18 |
18.9% |
|
|
Halifax 28-Month Low Balance Transfer Fee MasterCard |
28 months |
1.5% |
£30 |
18.9% |
|
Bank of Scotland Platinum 28-Month Low Balance Transfer Fee MasterCard |
28 months |
1.5% |
£30 |
18.9% |
|
Lloyds Bank Platinum 28-Month Low Balance Transfer Fee MasterCard |
28 months |
1.5% |
£30 |
18.9% |
*Nationwide current account customers only
If you need even longer, there are cards offering up to 34 months with no interest to pay, although the balance transfer fees are greater. Read more on these in The best 0% balance transfer credit cards.
Before you decide which card to go for, it’s best to decide how long you realistically need to pay off your debt. There’s no point going for a card with a shorter period so that you save on the fee, only to then find you don’t have long enough to wipe out your debt.
All of the cards mentioned so far are only available to people with very good credit ratings. If yours is good but not brilliant, for example you’ve had some minor debt problems in the past, and you don’t have more than two other credit commitments (for example a mortgage or a loan), you could apply for the Barclaycard Platinum 20-Month balance transfer card.
This offers a 20-month interest-free period on balance transfers in return for a 2.9% fee.
Play your cards right
Whichever card you choose, you must pay at least the minimum repayment each month or you’ll lose your 0% deal and get a black mark on your credit report.
Try to pay off your debts during the 0% period if at all possible. There’s no guarantee you’ll be able to switch to another one if you don’t.
More on borrowing and debt:
The best 0% balance transfer credit cards
Barclaycard launches longest ever interest-free balance transfer credit card