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Tesco tops table with 13-month 0% on purchases

New credit card deal is longest on the market

Tesco Bank Clubcard credit card

Tesco Bank offers a top 0%-on-purchases credit card deal

Tesco Clubcard credit card has launched a new 0%-on-purchases deal of 13 months for new customers, taking it to the top of the Which? Best Rate credit card table.

After the 13-month period runs out, purchases will attract a standard interest rate of 16.9%, so it’s vital to pay off the bill in full at the end of the deal, or to transfer it to a 0% balance transfer card.

The Clubcard credit card also offers an introductory rate of 0% on balance transfers for nine months (with a 2.9% fee), although this can easily be beaten by periods of up to 16 months available elsewhere. 

  • Read Which? Best Rate credit card reviews for the best balance transfer deals.

Excellent zero-interest option to spread the cost of big purchases

Which? credit card expert Martyn Saville commented: ‘The 0%-on-purchases deal is market-leading and could be a brilliant way to spread the cost of a large purchase over 13 months. Even if you’ve already got the cash in the bank to pay for your big purchase today, it might be worth putting it on the Tesco credit card and paying off the balance in full toward the end of the 13-month promotional period.

‘So long as you make the minimum payment each month, you’ll pay no interest on the purchase, you’ll earn Clubcard points, you’ll enjoy section 75 cover on your purchase and your savings can stay where they are for a bit longer, earning interest in a Best Rate savings account.’

Tesco Clubcard points

The Tesco Clubcard credit card also awards Clubcard points on all purchases at a rate of one point for every £4 spent on the credit card. However, knocked off your shopping this equates to a cashback rate of just 0.25%, boosted to 1% if you spend your points on promotional days out.

If rewards are your main motivation for taking out a new card, you’d earn much higher rewards with other high-street names such as House of Fraser, BHS or online retailer Play.com.

Tesco travel insurance

Tesco Clubcard credit card holders get a 10% discount on Tesco Travel Insurance. However, a worldwide annual policy from Tesco would still cost £63 with the 10% discount, compared with under £40 with a Which? Best Buy travel insurance policy. Tesco’s travel insurance cover doesn’t meet Which? Best Buy criteria either, so is best avoided.

Which? Best Rate credit cards

If you need advice to help you choose the best credit card for your needs, read the free Which? guide to choosing a credit card.

Once you know the best type of card for you, check out Which? Best Rate credit cards to find the most competitive deal available today, whether it’s a cashback card, a card offering 0% on purchases or the longest 0% deal on balance transfers.

And check out Which? Recommended Providers to find out which credit companies offer the best customer service without hitting you in the pocket.

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