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Tesco launches fee-free 12-month 0% balance transfer card

Rebecca Rutt
by Lovemoney Staff Rebecca Rutt on 07 June 2013  |  Comments 3 comments

Tesco has launched a balance transfer credit card with no interest for a year and no transfer fee to pay.

Tesco launches fee-free 12-month 0% balance transfer card

Tesco has launched a new Clubcard Credit Card, offering 12 months of 0% interest on balance transfers, but without charging a transfer fee.

Because the new card doesn't charge interest on balance transfers it's worth a look if you need a bit of help paying off existing credit card debt. And it's completely unique - no other card offering an interest-free period doesn't charge a transfer fee!

What's more, you won't pay interest on purchases for a year either!

There is also the added bonus for Tesco shoppers of collecting Clubcard points when using it. When shopping in Tesco or on Tesco petrol you’ll receive five points for every £4 you spend and you'll get one point for every £4 spent elsewhere.

How does it compare?

If you don't have a huge amount of existing credit card debt that you need help to clear then a card like the new Tesco Clubcard Credit Card gives you a decent amount of time to pay it off, without having to pay a transfer fee.

You can get longer 0% period though, for only a small fee, as the table below details

Balance transfer card

Balance transfer fee

0% period on balance transfers

0% period on new purchases

Fee paid on £2,000 balance transfer

Halifax All In One Online MasterCard


15 months

15 months


Lloyds TSB Online Platinum


15 months

3 months


NatWest Platinum Low Balance Transfer Fee Credit Card


13 months

6 months


Royal Bank of Scotland Platinum Low Balance Transfer Fee Credit Card


13 months

6 months


Barclaycard Platinum Low Fee Balance Transfer Credit Card

1.28% (for June)

16 months

3 months


Cards with a low fee typically have a much smaller 0% period.

But if you need a lot longer than even the 16 months offered by the Barclaycard above, there are other options around. The market-leader, for example, from Barclaycard has a 27-month 0% period, but a fee of 2.98%.

Our comparison tables show the full picture but here I’ve listed the top five cards with the longest 0% periods.


0% period

Balance transfer fee

Fee paid on £2,000 transfer

Representative APR after 0% period ends

Barclaycard 27-Month Platinum Visa

27 months

2.98% (for June)



NatWest Platinum MasterCard

26 months




RBS Platinum MasterCard

26 months




Virgin Money MasterCard

26 months




Barclaycard 25-Month Platinum Visa

25 months

2.04% (for June)



How to use a balance transfer card

When you take out one of these cards, the main aim should be to clear the debt in the 0% period. If you don't then you'll have to start paying interest when the 0% period ends. At this point it may be possible to transfer the debt onto a new card but there is no guarantee you’ll be accepted.

These cards have a higher standard interest rate than most credit cards and therefore interest payments can negate any savings you’ve made in the 0% period.

Missing a payment is also dangerous as it can cut the 0% period short, result in a fine or even leave a permanent mark on your credit score.

More on credit cards:

The best 0% balance transfer credit cards

Barclaycard cuts credit card fees in June sale

10 astonishing lies about credit ratings

The best low-fee balance transfer credit cards

How to build an excellent credit history

The best non-Barclaycard balance transfer credit cards

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Comments (3)

  • The Bank Manager
    Love rating 79
    The Bank Manager said

    Hi Loner,

    The T's & C's suggest that for;

    Credit limits, the minimum is £250 and it's income based, but you must be on a minimum of £5,000pa

    Balance Transfers, a 0% handling fee applies during the first 12 months from account opening.

    To me, these read that for the former, you can get a suitable means tested limit based upon earnings and other declared debt, and for the latter, your 12 months are fixed from the date the account is opened (say June 2013), but during that period, you can transfer other debts in and pay 0% on them, until the initial 12 month timeframe expires (say June 2014).

    Report on 15 June 2013  |  Love thisLove  1 love
  • Loner
    Love rating 3
    Loner said

    Cool name 'The Bank Manager' - thanks very much for this information, just what I wanted.

    Report on 15 June 2013  |  Love thisLove  0 loves

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