Consumers can give themselves an extra year to pay off credit card debt, free of charge, thanks to a new deal from Tesco Bank.
The new Low Fee Clubcard Credit Card includes a 12-month 0% deal on balance transfers, with no fee attached.
This is the longest fee-free deal on the market by some distance, making it the ideal choice for consumers with small credit card debts (or any which can be cleared within the 12-month window).
Which? Comparison Table: Best 0% balance transfer deals – compare the best deals on the market
How does this Tesco credit card compare?
Balance transfer fees
Tesco Bank was already the market leader for fee-free 0% balance transfer credit cards before the announcement of this new deal, having launched a similar 10-month deal last month.
The next longest fee-free balance transfer deal is the five-month deal offered with the Danske Visa/MasterCard.
If your debt is likely to take longer than a year to clear, then you’re best off choosing a card with a longer 0% deal, as the APR on the Tesco card shoots up to 18.9% after 12 months.
You’ll have to pay a one-off transfer fee if you want a longer deal, but these often pale in comparison to the interest charges you’ll face on debt that isn’t cleared within a 0% balance transfer period.
There are credit cards that offer 0% balance transfer deals for up to 34 months, but these typically charge around 3% of the sum transferred. However, there are plenty of cards with shorter deals that charge less.
This card also charges 0% interest on purchases made within the first 12 months.
Applicants will receive Clubcard loyalty points on all of their credit card spending, at a rate of five Clubcard points for every £4 spent in Tesco stores and one point for every £4 you spend elsewhere.
This is an identical rewards scheme to the one offered with Tesco Bank’s 32-month Balance Transfer Credit Card and one that could prove especially fruitful for regular Tesco shoppers.
Which? Comparison Table: Best credit cards for retail rewards – all available deals compared