Don't overlook the Tesco 0% Balance Transfer Fee Credit Card. The 20-month balance transfer period isn't on the super-long end, but it's still more than a year and a half. Better still, you won't pay a fee on your balance transfers. This is a better choice if you're just looking for balance transfers, as there's no 0% purchase period. However, you will collect Tesco Clubcard points when you shop with this card.Read full review >
|Representative rate||19.9% APR (variable)|
|Interest on purchases||19.9% p.a. (variable)|
|Assumed credit limit||£1,200|
The Tesco 0% Balance Transfer Fee Credit Card offers consumers the chance to reduce their interest payments on existing debt over a 20-month period. Its 0% transfer fee and 0% interest period could save individuals significant sums on existing debt, while no annual fee and Clubcard points further increase the appeal of the card.
Some may prefer to pay a small transfer fee in order to obtain a longer 0% interest period. However, in addition to the 20 months of 0% interest on balance transfers, this card also offers 0% interest on money transfers during the first 12 months. Therefore, it is likely to appeal to a range of consumers.
The 0% balance transfer fee is relatively attractive, with a number of competitors charging consumers for transferring existing debts from other cards. However, it is possible to obtain a longer 0% balance transfer period elsewhere for a modest transfer fee. This may be a better option for those people who feel they need longer than 20 months in order to pay down or repay their debt. This could save a larger amount of interest for an individual in such a scenario.
The Clubcard points are appealing, especially since a number of balance transfer cards don’t offer cashback or similar rewards. On the other hand, some competitors offer 0% interest on all purchases on the first year of being a cardholder in order to provide consumers with greater financial flexibility.
The 20-month balance transfer period may not be available to all applicants. Depending on an individual’s circumstances, a shorter balance-transfer period may be offered. Likewise, the advertised APR is representative, which means that at least 51% of applicants will be offered that rate. Those with middling credit may be offered a higher rate.
The card is available to new and existing Tesco credit card customers, provided they do not have more than one other credit card with the company. An annual income of at least £5,000 and a good credit history are required.
Applications can be made online, with the process taking less than 10 minutes. Basic details such as previous addresses over the last three years, salary and take-home pay, as well as other credit card information in order to undertake a balance transfer are also needed. The company’s contact centre is available 24 hours per day, 365 days per year if online is not an option for customers.
For an individual seeking to reduce the interest they pay on existing debt, the 20-month 0% interest period on balance transfers is appealing. The lack of a transfer fee helps to keep costs down even further versus competitors, and could save individuals significant sums in interest payments.
For some consumers, a longer 0% interest period on balance transfers may provide them with greater financial flexibility. Although a transfer fee may be payable for a longer 0% interest period, the benefit of having more time to pay off an existing balance without incurring interest charges may outweigh this. Clubcard points and the lack of an annual fee add to the card’s appeal versus competitors.
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