Tesco Bank Balance Transfer Credit Card review 2024
- Representative example:
- When you spend £1,200 at a purchase rate of 24.9% (variable) p.a., your representative rate is 24.9% APR (variable).
- 0% interest on balance transfers
- 27 months
- 0% interest on money transfers
- 9 months
- Account fee
- £0
Our verdict
Transfer your existing card debt and enjoy a rate of 0% for 27 months – buying you a healthy amount of time to focus on reducing the balance.
If you're paying an arm and a leg in interest on credit card debt, this deal lets you transfer it across to Tesco Bank, to enjoy an impressive 27-month 0% period – the card issuer's longest in fact. By cutting out the interest payments, you could get debt-free sooner and more cheaply.
There is a transfer fee of 3.49% for 27 months reverting to 3.99% to consider, which will be particularly painful for those looking to transfer larger sums. If you don't need 27 months to clear your debt, then it would be worth looking at no-fee balance transfer deals first.
As is the case with most balance transfer deals, when the 0% period's through, any outstanding debt will start to incur interest at a fairly punishing rate. Because of that you should focus on clearing the debt before that point. Divide your balance by 27 to see what you'll need to repay each month, and try not to use the card for any further spending (despite the fact that you'd earn Clubcard points for doing so).
Pros
- Customers report excellent customer service when dealing with Tesco Bank
- Over two years of 0% interest to focus on reducing existing card debt
- Earn Clubcard points on day-to-day spending
- No annual fee
Cons
- Applicants with low credit scores are unlikely to be eligible
- Relatively high balance transfer fee
- Relatively high money transfer fee
- You may be offered an opening credit limit as low as £100
Details
Product overview
| Issuer | Tesco Bank |
| Network | Mastercard |
| Representative APR | 24.9% |
| Annual/monthly fees | £0 |
| Balance transfers | 0% for 22 months reverting to 24.9% |
| Balance transfer fee | 3.49% for 27 months reverting to 3.99% |
| Purchases | 24.9% |
| Purchases interest-free period | Up to 56 days |
| Money transfers | 0% for 9 months reverting to 29.9% |
| Cash advances | 29.947% |
| Minimum credit limit | £100 |
| Maximum credit limit | Subject to status |
| Additional cards available | 1 |
| Incentive | 5 points per £4 spent (£4 minimum) in Tesco and 1 point per £8 spent (£8 minimum) outside Tesco. Must have available credit to earn points. Points are converted to Tesco vouchers or can be exchanged for Partner rewards to receive money off a variety of restaurants, entertainment or Avios points. |
| Potential costs | 4.0 ★★★★★ |
| Doing its job | 4.0 ★★★★★ |
| Extras | 1.5 ★★★★★ |
| Overall Finder score | 4.0 ★★★★★ |
Fees and charges
| Minimum monthly payment | 1% or £25 (whichever is greater) or the total of any interest, default fees and charges plus 1% of the outstanding balance plus any arrears; or any amount owed over credit limit plus over limit fees; or double the total interest and defualt fees plus £5 and any arrears. |
| Annual/monthly fees | £0 |
| Balance transfer fee | 3.49% for 27 months reverting to 3.99% |
| Money transfer fee | 3.99% |
| Foreign usage charge (EU) | 2.75% |
| Foreign usage charge (rest of world) | 2.75% |
| Cash advance fee | 3.99% (min. £3) |
| Late payment fee | £12 |
| Replacement card fee | £0 |
| Duplicate statement fee | £0 |
| Exceeding limit fee | £0 |
| Additional card fee | £0 |
| Dormancy fee | £0 |
Application requirements
| Minimum Age | 18 |
| Minimum income | £5,000 |
| Residency | UK residents |
| Availability | Available to new customers |
The Tesco Bank Balance Transfer Card is issued on the Mastercard network so it's accepted at more than 50 million merchant locations across more than 210 countries and territories.
How does it compare?
Tesco Bank's card
Other popular balance transfer deals
Approval for any credit card depends on your status. The representative APRs shown represent the interest rate offered to most successful applicants. Depending on your personal circumstances, the APR you're offered may be higher, or you may not be offered credit at all. Fees and rates are subject to change without notice. It's always wise to check the terms of any deal before you borrow. Most of the data in Finder's comparison tables is provided by Moneyfacts.
Repayment options
You can make manual repayments through Tesco Bank's app by logging in to your online banking or over the phone (0345 300 4278). Alternatively, you may wish to set up a direct debit.
A direct debit protects you from forgetting to make a repayment and losing your promotional interest rate as a result (as well as damaging your credit score and incurring the late payment fee of £12). You could use a fixed-amount direct debit to ensure you've cleared your debt before the 0% period expires – simply divide your outstanding balance by 27 to see what you'll need to pay each month (this assumes you don't use the card for additional spending).
You can arrange a direct debit for repayments when you apply for the credit card. The table below shows the options available.
Choose from the following direct debit options for your monthly repayments:
| Minimum amount | Fixed amount | Fixed percentage | Full amount |
|---|---|---|---|
How to apply
If you've compared cards and settled on the Tesco Bank Balance Transfer Card, completing the secure online application form takes about 15 minutes. Before you apply, check that you meet the eligibility requirements and have the information and documents you'll need to make the process as straightforward as possible. You can request a balance transfer as part of your application.
Frequently asked questions
What credit limit will I get with the Tesco Bank Balance Transfer Card?
If Tesco Bank offers you this deal, it will specify a personalised credit limit based on Tesco Bank's assessment of your situation. The minimum limit offered on this card is £100, and Tesco Bank does not specify a maximum. Once you've had the card for a while and shown Tesco Bank you're reliable, you may wish to apply for a credit limit increase.
Can I withdraw cash using the Tesco Bank Balance Transfer Card?
Although it's possible, withdrawing cash from a credit card account is generally not a good idea, as "cash-like transactions" (such as withdrawing cash at an ATM, getting cashback at the till, spending at a casino or buying currency) often incur steep fees and/or higher rates of interest.
The cash advance fee on the Tesco Bank Balance Transfer Card is 3.99% (min. £3). For example, if you withdraw £50, you'll incur a fee of £3.00. Withdraw £250 and you'll incur a rather painful fee of £9.98.
The interest rate on this part of your balance will be 29.95%, which is 20% more than the standard purchase rate (chargeable from the day of the transaction – the card's usual "up to 56 days interest-free" grace period won't apply).
What should I do with my old credit card after transferring the balance to the Tesco Bank Balance Transfer Card?
Transferring a balance doesn't automatically close your old account. In most cases, you'll want to close the old account(s) straightaway, especially if they have an annual/monthly fee or if you might be tempted to use them in the future. There is an argument that you should keep the old account open to help your credit score. That's because doing so keeps your "credit utilisation ratio" lower (that's a measure of how much credit you're using compared to what's available to you) and helps the average age of your credit accounts. However, unless you're just about to apply for a new mortgage, it's probably fair to say that most people would prefer to have no more bank accounts open than was truly necessary.
How much does it cost to use the Tesco Bank Balance Transfer Card abroad?
Non-sterling transactions are subject to a 2.75% charge. For example, if you spend 200 euros (£171.26), it'll cost you around £4.71 in fees.
What is the minimum payment on the Tesco Bank Balance Transfer Card?
Each month, you must pay at least 1% of your balance at that point or £25.00 – whichever of the 2 figures is greater. So if you had, say, £2,450.00 outstanding, you'd pay £25.00, and if you had £10,000.00 outstanding, you'd pay £100.00.
Paying only the minimum required amount each month is generally not advisable as it makes it much harder to get debt-free before that introductory 0% period expires.
Can I transfer money from the Tesco Bank Balance Transfer Card to a bank account?
Yes. That's what's known as a "money transfer" (rather than a "balance transfer") in credit card jargon. You can arrange this from your online banking or using Tesco Bank's app. New customers will pay no interest on this part of their card's outstanding balance for up to 9 months. The fee for a money transfer is 3.99%.
Finder credit card scores
Our experts score balance transfer cards to determine their value against similar products on the market. We look at a number of important factors, like the length of the balance transfer offer, the balance transfer fee, any restrictions to making a transfer, plus the potential costs involved with running the card both in the short and longer term.
You can read more about our scoring criteria on our credit card methodology page.
