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EnergyTesco Clubcard credit card now offers 0% for 23 months
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Tesco has improved its Clubcard balance transfer credit card so that it now offers a cracking 23 months of 0% interest.The card comes with a competitive 2.9% balance transfer fee too.
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Let's take a look at how the new and improved Tesco card compares.
|
Card |
0% period |
Balance transfer fee |
Fee paid on £2,000 transfer |
Representative APR after 0% period ends |
|
24 months |
3.2% |
£64 |
17.9% |
|
|
23 months |
2.7% |
£54 |
18.9% |
|
|
23 months |
2.85% |
£57 |
16.9% |
|
|
23 months |
2.9% |
£58 |
16.9% |
|
|
23 months |
2.9% |
£58 |
17.9% |
|
|
23 months |
2.9% |
£58 |
17.9% |
|
|
23 months |
3% |
£60 |
18.9% |
|
|
21 months |
1.45% |
£29 |
17.9% |
|
|
21 months |
1.5% |
£30 |
17.9% |
|
|
21 months |
3% |
£60 |
16.9% |
So we can see that the Tesco card, while very competitive, is not quite market leading. Barclaycard's 24-month Platinum card remains the credit card offering the longest interest-free period, while its 23-month Platinum card and the MBNA Visa both offer the same 0% period but a lower balance transfer fee.
Of course, if you already have debt on a Barclaycard or MBNA card that you are looking to transfer, then the Tesco Clubcard credit card suddenly looks far more attractive, given you cannot move debt between cards from the same provider.
Who needs a balance transfer card?
As the name suggests, a balance transfer card allows you to move your existing balance from your old credit card onto a new one. This is a smart move if you're paying interest on the old card, as balance transfer cards offer lengthy interest-free periods.
That means you can pay off your debt in manageable chunks, safe in the knowledge that every penny you pay each month goes towards wiping out your debt.
However, to do so, you will need to pay a transfer fee. As the table above demonstrates, these can vary significantly, so make sure you know what you'll be paying in exchange for your 0% period.
The best 0% balance transfer cards tend to only be offered to those with an excellent credit record. You can check your own score thanks to a free trial with Experian via Lovemoney. And if you need to clean yours up a little, check out How to build an excellent credit history.
Finally, make sure you clear the balance before you get to the end of the 0% period. Otherwise you'll either have to start paying interest, or else move your debt over to a new 0% card, and pay another transfer fee for the privilege.
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