Tesco Bank’s new 0%-on-purchases deal is the longest of its kind on the market, but is it the right deal for you?
Tesco Bank’s latest credit card has pushed the longest 0% purchases deal on the market up to 19 months, ahead of the next longest deals offered by Santander of 18 months.
The card also lets you collect one Clubcard point for every £5 spent and can be used alongside the standard Tesco Clubcard to add a boost to its reward scheme.
Is this the right deal for me?
0% purchase deals offer the best option for borrowing interest-free, as long as you have the discipline to pay off the debt before the end of the interest-free period and the card reverts to its 18.9% APR.
These deals can work out well for making large one-off purchases or a number of smaller purchases and then setting up a direct debit, to repay the debt in equal monthly instalments over the remaining interest-free period.
The reward scheme that comes with the card really only offers some value for Tesco shoppers and should be used in combination with the Tesco Clubcard to maximise the amount of points you can get.
Which? Comparison Table – Best 0% on purchases credit cards – compare the best deals on the market
Credit card deals: The best of the best
#1 Best Cash back deals
Last week Santander’s 123 MasterCard emerged as the most popular cash back card via usage of our new Which? Comparison Credit Card tables.
This is a great all-round card offering a good cash back deal: 1% in most supermarkets, 2% in selected department stores, 3% in selected petrol stations and some train travel.
It also comes with an 18 month 0%-on-purchases deal – the second longest on the market – and the purchase APR has also recently been reduced to 12.7%. This card comes with a £24 annual fee.
Also the American Express Platinum Cashback Card and the Platinum Everyday Card are also worth a look if you’re after a good cash back deal – both offer 5% cash back for the first 3 months, capped at £125 and £100 cash back respectively.
Which? Comparison Table – Best cash back credit cards – compare the best deals on the market
#2 Best credit cards for use abroad
The Saga Platinum Visa, Halifax Clarity MasterCard, Nationwide BS Select Visa and Post Office Platinum MasterCard offer the best options, as they waive the foreign loading fee on transactions made abroad.
To make the most of these cards stick to making purchases on the card and set up a direct debit to clear the bill at the end of the month to avoid paying interest.
Make sure you opt to pay in the local currency rather than in sterling when abroad, so that you use the exchange rate offered by Visa or MasterCard and utilise the waived foreign loading fee.
Halifax’s Clarity MasterCard does not make a charge for withdrawing cash – though some cash machines may still charge you. The card will apply interest for cash withdrawals from the day of transaction at 12.9%.
Which? Comparison Table – Best credit cards to use abroad – compare the best deals on the market
#3 Best reward credit cards
There are plenty of good reward credit cards on the market, paying up to 3% on purchases made in store or elsewhere.
Which? Comparison Table – Best credit cards for retailer rewards – compare the best deals on the market
#4 Best 0% balance transfer deals
0% balance transfer deals give you a break from paying interest, but they aren’t entirely free from charges. Most cards charge a one-off transfer fee on balance transfers – typically between 1.5% and 3% of the debt you’re moving.
The longest deal on the market offered by Barclaycard is currently 33 months interest-free charging a transfer fee of 2.99%.
However the longest deal may not always be the best option for everyone. If you think you can pay off the balance over a shorter period of time there are some significantly cheaper deals, Sainsbury’s Nectar Low Balance Transfer Fee MasterCard currently offers a 12 month interest-free period with a 0.5% handling fee.
Which? Comparison Table – Best 0% balance transfer credit cards – compare the best deals on the market