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
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.
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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.
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- Tesco Clubcard offer: should you take advantage?
- The top credit cards for paying off your debt
- Why making credit card overpayments will actually cost you!