Tesco Bank ups 0% balance transfer offer to 34 months

Supermarket bank has increased the 0% balance transfer period on its Clubcard credit card


credit card, macro

What's changed?
Tesco Bank has increased its interest-free period on balance transfers on its Clubcard Balance Transfer credit card to 34 months. So you have nearly three years to pay off any debt you transfer onto the card without paying any interest.

The card has a balance transfer fee of 2.9%. So if you're transferring £2,000, you'll pay a fee of £58, if you're transferring £1,000 you'll pay £29 and so on.

If you don't pay off your balance transfer in full by the end of the 0% period, you'll pay interest charges of at least 18.9% APR.

What else does it offer?
The Clubcard Balance Transfer credit card also offers an interest-free period of three months on purchases. However, this is really low and reflects the fact the card is designed for balance transfers.

If you do spend on it though you will earn Clubcard points: five points for every £4 you spend at Tesco and Tesco fuel stations, and one point for every £4 you spend elsewhere.

But if you're serious about getting your credit card debt paid off it's probably best to avoid spending on this card.

How does it compare?
The move has put Tesco Bank up towards the top of the best buy table, but there are still better deals out there.

Credit card

0% period on balance transfers

Balance transfer fee

Cost of transferring £2,000 balance

Representative APR

Barclaycard 35-Month Platinum Visa

35 months




Barclaycard 34-Month Platinum Visa

34 months




Halifax 34-Month Balance Transfer MasterCard

34 months




Tesco Bank Clubcard 34-Month Balance Transfer Credit Card

34 months




Lloyds Bank Platinum 34-Month Balance Transfer MasterCard

34 months




Bank of Scotland Platinum 34-Month Balance Transfer MasterCard

34 months




HSBC Credit Card*

34 months




*HSBC current account customers only

As you can see, you can enjoy 35 months free from interest with the Barclaycard 35-Month Platinum, and with a lower balance transfer fee (2.49%) to boot. Indeed, you can get a 34 month deal with a lower balance transfer fee with the likes of the Barclaycard 34-Month or the Halifax 34-Month card too.

However, as you can't move debt between two cards from the same provider, the Tesco card may be handy if you already have debt on a Barclaycard or Halifax card.

If you think you could pay off your debt in less time, then you could take advantage of a low-fee balance transfer card and pay a smaller balance transfer fee. However, be sure you can pay off your debt in that time period otherwise you'll just end up either trying to switch to another card or paying interest.

These top cards tend to be reserved for borrowers with the best credit rating. If yours isn't great, it's best not to further damage it by applying for lots of cards if you're being rejected.

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