Tesco Bank Balance Transfer Credit Card review 2020

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Transfer your existing card debt and enjoy a rate of 0% for 22 months – buying you a healthy amount of time to focus on reducing the balance.

You say: ★★★★★We say: ★★★★★

Representative example: When you spend £1,200 at a purchase rate of 19.944% (variable) p.a., your representative rate is 19.9% APR (variable).

22 months

0% interest on balance transfers

19.9%

Representative APR

12 months

0% interest on money transfers

£0

Account fee

Details

IssuerTesco Bank
NetworkMastercard
Annual/monthly fees£0
Balance transfers0% for 22 months reverting to 21.814%
Balance transfer fee2.98% for 22 months reverting to 3.99%
Purchases19.944%
Purchases interest-free periodUp to 56 days
Money transfers0% for 12 months reverting to 21.814%
Cash advances24.942%
Min credit limit£100
Max credit limitSubject to status
Additional cards available1
Incentive1 point 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.

Expert review

Chris Lilly

Review by


Chris Lilly is a publisher at finder.com. He's a specialist in credit-based products including business and personal loans, mortgages and credit cards, and is passionate about helping UK consumers make informed decisions about their borrowing. In his spare time Chris likes forcing his kids to exercise more.

Expert review

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 22-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 2.98% for 22 months reverting to 3.99% to consider, which will be particularly painful for those looking to transfer larger sums. If you don’t need 22 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 22 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 and cons

Pros

  • Customers report excellent customer service when dealing with Tesco Bank
  • Almost two years of 0% interest to focus on reducing existing card debt
  • A year of 0% interest on funds you transfer out from the card
  • Earn Clubcard points on day-to-day spending
  • No annual fee

Cons

  • Applicants with low credit scores are unlikely to be eligible
  • Don't forget that balance transfer fee! If cutting the interest on existing card debt is your main reason for considering this card, check out no-fee deals first
  • Relatively high money transfer fee
  • You may be offered an opening credit limit as low as £100

How does it compare?

Tesco Bank's card

Data indicated here is updated daily
Name Product Balance transfers Balance transfer fee Purchases Annual/monthly fees Rep. APR Incentive Link
Tesco Bank Balance Transfer Card
0% for 22 months reverting to 21.814%
2.98% for 22 months reverting to 3.99%
19.944%
£0
19.9% (variable)
1 point 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.
Representative example: When you spend £1,200 at a purchase rate of 19.944% (variable) p.a., your representative rate is 19.9% APR (variable).
More Info
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Other popular balance transfer deals

Table: sorted by length of 0% balance transfer offer, promoted deals first
Data indicated here is updated daily
Name Product Balance transfers Balance transfer fee Purchases Annual/monthly fees Rep. APR Incentive Link
M&S Bank Transfer Plus Mastercard
0% for 28 months reverting to 19.9%
2.85% (min. £5)
0% for 6 months reverting to 19.9%
£0
19.9% (variable)
Earn 1 point for every £1 spent at Marks and Spencer's and 1 point for every £5 spent elsewhere. 100 points = £1 reward voucher. Points will be converted into reward vouchers 4 times a year.
Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable) p.a., your representative rate is 19.9% APR (variable).
Check eligibility
More Info
HSBC Balance Transfer Credit Card
0% for 25 months reverting to 21.9%
1.5% (min. £5)
0% for 3 months reverting to 21.9%
£0
21.9% (variable)
Discounts and exclusive offers for dining experiences, leisure activities and shopping available through HSBC Home and Away.
Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a., your representative rate is 21.9% APR (variable).
Check eligibility
More Info
M&S Bank Shopping Plus Mastercard
0% for 20 months reverting to 19.9%
2.9% (min. £5)
0% for 20 months reverting to 19.9%
£0
19.9% (variable)
Earn 1 point for every £1 spent at Marks and Spencer's and 1 point for every £5 spent elsewhere. 100 points = £1 reward voucher. Points will be converted into reward vouchers 4 times a year.
Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable) p.a., your representative rate is 19.9% APR (variable).
Check eligibility
More Info
The Royal Bank Balance Transfer Credit Card (eligibility criteria apply)
0% for 18 months reverting to 19.9%
0.49%
Transfers must be made within 3 months of account opening
0% for 3 months reverting to 19.9% p.a. (variable)
£0
19.9% (variable)
Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable), your representative rate is 19.9% APR (variable).
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More Info
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Approval for any credit card will depend on your status. The APR shown represents 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.

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 22 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 is able to offer you this deal, the offer 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 that 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" (withdrawing cash at an ATM, getting cashback at the till, spending at a casino, buying currency, etc.) 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 24.94%, which is 25% more than the standard purchases 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 (£180.83), it'll cost you around £4.97.

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 two 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 12 months. The fee for a money transfer is 3.99%.

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4 Comments

  1. Default Gravatar
    Mike
    March 24, 2019

    Can you tell me which credit cards permit a monthly payment in full by direct debit? Do Tesco cards allow this?

    • Avatarfinder Customer Care
      Chris
      March 28, 2019

      Hi Mike,

      Thanks for your question about Tesco credit cards. You can indeed arrange to pay your bill in-full or in-part each month by direct debit.

      You’re actually not the first person to ask, so we’ve published a full list of the cards currently available in the UK with the direct debit repayment options for each.
      https://www.finder.com/uk/pay-your-credit-card-bill-by-direct-debit

      Cheers,
      Chris

  2. Default Gravatar
    Maureen
    August 23, 2018

    Will I be accepted for a balance transfer of £5000 with Tesco?

    • Avatarfinder Customer Care
      Jhez
      September 1, 2018

      Hello Maureen,

      Thank you for your comment.

      The approved credit limit is determined by Tesco and may vary subject to your individual circumstances. With Tesco, you’re allowed to transfer up to 95% of your available credit limit.

      Therefore, we can’t say that you’ll be accepted for a balance transfer of £5000 since this will depend on your approved credit limit.

      Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.

      Regards,
      Jhezelyn

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