Tesco has launched a balance transfer credit card with no interest for a year and no transfer fee to pay.

Tesco has launched a new Clubcard Credit Card, offering 12 months of 0% interest on balance transfers, but without charging a transfer fee.

Because the new card doesn't charge interest on balance transfers it's worth a look if you need a bit of help paying off existing credit card debt. And it's completely unique - no other card offering an interest-free period doesn't charge a transfer fee!

What's more, you won't pay interest on purchases for a year either!

There is also the added bonus for Tesco shoppers of collecting Clubcard points when using it. When shopping in Tesco or on Tesco petrol you'll receive five points for every £4 you spend and you'll get one point for every £4 spent elsewhere.

How does it compare?
If you don't have a huge amount of existing credit card debt that you need help to clear then a card like the new Tesco Clubcard Credit Card gives you a decent amount of time to pay it off, without having to pay a transfer fee.

You can get longer 0% period though, for only a small fee, as the table below details

Balance transfer card

Balance transfer fee

0% period on balance transfers

0% period on new purchases

Fee paid on £2,000 balance transfer

Halifax All In One Online MasterCard

1.00%

15 months

15 months

£20.00

Lloyds TSB Online Platinum

1.00%

15 months

3 months

£20.00

NatWest Platinum Low Balance Transfer Fee Credit Card

1.00%

13 months

6 months

£20.00

Royal Bank of Scotland Platinum Low Balance Transfer Fee Credit Card

1.00%

13 months

6 months

£20.00

Barclaycard Platinum Low Fee Balance Transfer Credit Card

1.28% (for June)

16 months

3 months

£25.60


Cards with a low fee typically have a much smaller 0% period.

But if you need a lot longer than even the 16 months offered by the Barclaycard above, there are other options around. The market-leader, for example, from Barclaycard has a 27-month 0% period, but a fee of 2.98%.

Our comparison tables show the full picture but here I've listed the top five cards with the longest 0% periods.

Card

0% period

Balance transfer fee

Fee paid on £2,000 transfer

Representative APR after 0% period ends

Barclaycard 27-Month Platinum Visa

27 months

2.98% (for June)

£59.60

18.9%

NatWest Platinum MasterCard

26 months

2.65%

£53

18.9%

RBS Platinum MasterCard

26 months

2.65%

£53

18.9%

Virgin Money MasterCard

26 months

2.99%

£59.80

17.9%

Barclaycard 25-Month Platinum Visa

25 months

2.04% (for June)

£40.80

18.9%


Make money from your spending with a cashback credit card

How to use a balance transfer card
When you take out one of these cards, the main aim should be to clear the debt in the 0% period. If you don't then you'll have to start paying interest when the 0% period ends. At this point it may be possible to transfer the debt onto a new card but there is no guarantee you'll be accepted.

These cards have a higher standard interest rate than most credit cards and therefore interest payments can negate any savings you've made in the 0% period.

Missing a payment is also dangerous as it can cut the 0% period short, result in a fine or even leave a permanent mark on your credit score.

Save money on your travels: get a credit card with no foreign usage fees



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