Tesco Bank 12 Month All Round Credit Card

By: Peter Stephens | Updated: 22nd October, 2019.

Great for: 0% on purchases and balance transfers, no balance-transfer fee
4.5 stars question mark

The Tesco Bank 12 Month All Round Credit Card succeeds by being just what the name says: a good all-round option. You can find longer 0% interest periods elsewhere, but 12 months of 0% on purchases, balance transfers, and money transfers is a nice combination. No balance transfer fee adds to the appeal, as does the ability to earn Clubcard points.

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CREDIT RATING req:

  • Poor/No credit
  • Fair/Average
  • Good/Excellent

HIGHLIGHTS

  • 0% interest for 12 months on purchases
  • 0% interest for 12 months on balance transfers and money transfers made in the first 90 days
  • No annual fee
  • No balance transfer fee (3.94% money transfer fee)
  • 1 Tesco Clubcard point for every £1 spent at Tesco and for every £8 spent elsewhere

REPRESENTATIVE EXAMPLE

Representative rate 19.9% APR (variable)
Purchase rate 19.9% p.a. (variable)
Based on borrowing £1,200

what we like

  • 0% interest for 12 months on purchases
  • 0% interest for 12 months on balance transfers and money transfers made in the first 90 days
  • No annual fee
  • ANNUAL FEE:

    £0
  • REPRESENTATIVE APR:

    19.9%
  • INTRO OFFER:

    0% interest for 12 months on purchases, balance transfers and money transfers

KEY SCORES:

  • 4/5 Perks
  • 3/5Fees
  • 4/5APR

HIGHLIGHTS

  • 0% interest for 12 months on purchases
  • 0% interest for 12 months on balance transfers and money transfers made in the first 90 days
  • No annual fee
  • No balance transfer fee (3.94% money transfer fee)
  • 1 Tesco Clubcard point for every £1 spent at Tesco and for every £8 spent elsewhere

REPRESENTATIVE EXAMPLE

Representative rate 19.9% APR (variable)
Purchase rate 19.9% p.a. (variable)
Based on borrowing £1,200

OUR BOTTOM LINE

The Tesco Bank 12 Month All Round Credit Card succeeds by being just what the name says: a good all-round option. You can find longer 0% interest periods elsewhere, but 12 months of 0% on purchases, balance transfers, and money transfers is a nice combination. No balance transfer fee adds to the appeal, as does the ability to earn Clubcard points.

Credit Rating Requirement: Good/Excellent

What I like about the Tesco Bank 12 Month All Round Credit Card

  • 0% on purchases – The card has an introductory 12-month period during which 0% interest is charged on new purchases. This could be particularly useful for consumers who have a large upcoming purchase, and may provide them with a worthwhile alternative to paying interest on other forms of debt such has a personal loan. It could reduce the amount of interest they pay, which may improve their financial position in the long run.
  • Balance transfer/money transfer – Since it is marketed as an ‘all round’ credit card, this card also has a 12-month balance transfer and money transfer offer. In the case of a balance transfer, a 0% interest rate is charged during the period on existing debts that are transferred onto the card. This could reduce the amount of interest paid on existing debt, while enabling a consumer to repay their debt at a faster pace. Likewise, a 0% interest rate is charged on money transfers for a 12-month period. A money transfer is where cash is paid directly into your bank account from the credit card issuer. This could make the card a realistic alternative to a personal loan.
  • Interest savings – For example, a new customer with a £2,500 debt at an interest rate of 18.9% with repayments of £200 per month could save £278 through a balance transfer. There is no balance transfer fee. A money transfer for the same amount and the same repayment schedule could save you £45 when compared to a personal loan that has a 9.9% interest rate. This includes a 3.94% money transfer fee. 
  • No annual fee – With no annual fee, the card may be of interest to a wide range of consumers. For example, the card may appeal to consumers who want to use it regularly as an everyday card, or equally for someone who wants to take advantage of its 0% introductory rate on new purchases.
  • Rewards – Unlike some of its competitors, the Tesco Bank 12 Month All Round Credit Card offers a rewards scheme. For every £4 spent at Tesco on the card, 1 Clubcard point is collected. For every £8 spent elsewhere, 1 point is collected. With a varied range of restaurants, hotels, magazines and other products available through Clubcard partners, it may be possible to triple your Clubcard points in order to further enhance your rewards.

Why trust me

I have been writing for The Motley Fool since 2013, and have experienced the booms and busts of the UK economy for a number of decades both as an investor and a consumer. I have held various senior management positions during my career, while also setting up my own manufacturing company in 1996. It was subsequently sold in 2007. I have a keen interest in consumer finance, as well as in the stock market.

What could be improved

  • 0% period – The introductory 0% interest rate period on new purchases is significantly shorter than that of some of the card’s rivals. For example, it is possible to obtain a 26-month 0% introductory period on new purchases elsewhere. Likewise, the balance transfer and money transfer periods are shorter than the 29 months that can be obtained from other credit cards at the time of writing (though note that the longest balance transfer periods almost always come with a balance transfer fee). Therefore, consumers who are seeking to maximise their interest savings may want to consider other credit cards that offer more generous terms.
  • Fees – The 3.94% money transfer fee is relatively high given the fairly modest length of the 0% interest rate period offered. It may be possible to achieve a longer period elsewhere for a similar fee, or alternatively obtain a card that has a 12-month money transfer period during which 0% interest is charged without a fee being applicable.
  • Foreign exchange fee – The 2.75% non-sterling transaction fee charged by the card is typical for a non-travel credit card. This fee can make spending when abroad much more expensive in the long run than when using a card that has no foreign exchange fee. As such, it may be worth considering having a travel card as a second credit card.

How does it stack up?

Due to its focus on being an all-rounder, the Tesco Bank 12 Month All Round Credit Card lacks appeal when compared to more focused credit cards. In other words, it does not offer the best opportunities from a purchases perspective or from a balance transfer or money transfer standpoint. It is possible to find other cards that offer lower transfer fees and/or longer 0% interest periods.

However, the card has a broader appeal than many of its rivals. This could make it worthwhile for consumers who, for example, want to undertake a balance transfer and benefit from an introductory 0% interest rate on new purchases without having two separate cards to achieve these goals.

The card’s rewards are relatively appealing and help to increase its appeal in what are competitive niches. Its rewards make the card a more realistic everyday card that can help consumers maximise the benefits they receive when spending in a range of retailers.

Credit score

The card requires applicants to have a good credit history. It is available to individuals who do not have more than one existing Tesco Bank credit card, and who have not applied for a Tesco Bank credit card over the last month.

The 12-month 0% interest rate period on purchases, balance transfers and money transfers is representative. The issuer is required to offer the advertised period to 51% of applicants, which means you may be offered a shorter interest-free period. Likewise, the interest rate offered to you following the 12-month introductory period may differ from the representative rate.

How to apply

Applying online is relatively straightforward and can be done in a matter of minutes. Information such as your previous addresses, employment details and details of any debt you want to transfer to the card will be needed when applying. Applicants must be aged 18 or above and have an annual income of at least £5,000.

Is the Tesco Bank 12 Month All Round Credit Card right for you?

The card is an appealing all-rounder. Inevitably, this means that its features are not individually as attractive when compared to those of specialist purchases, balance transfer or money transfer cards. For example, if you are looking for a card that offers a longer 0% interest period on new purchases, it is possible to obtain one elsewhere.

However, if you are seeking a credit card that has a variety of features that, when combined, offer an appealing overall package, then the Tesco Bank 12 month All Round Credit Card could be a good match.

The card has a rewards programme, which helps to further differentiate the card from its rivals. As such, it could be a worthwhile everyday credit card for consumers who are looking to reduce interest costs on existing debts, obtain an introductory 0% interest rate on new purchases, and collect rewards without having multiple cards.

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