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Tesco credit card gives a free year to pay off debts

New 12-month balance transfer deal with no fee

Tesco credit card being pulled out of wallet

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

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