Approval for any credit card will depend 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.
Tesco Bank Clubcard Balance Transfer and Purchases Credit Card review 2021
Designed for those wanting to spread the cost of a large expenditure and cut interest on existing card debt.
You say: ★★★★★We say: ★★★★★
Representative example: When you spend £1,200 at a purchase rate of 20.94% (variable) p.a., your representative rate is 20.9% APR (variable).
20 months
0% interest on balance transfers
20.9%
Representative APR
20 months
0% interest on purchases
£0
Account fee
Details
| Issuer | Tesco Bank |
|---|---|
| Network | Mastercard |
| Annual/monthly fees | £0 |
| Balance transfers | 0% for 20 months reverting to 20.94% |
| Balance transfer fee | 1.99% for 20 months reverting to 3.99% |
| Purchases | 0% for 20 months reverting to 20.94% |
| Purchases interest-free period | Up to 56 days |
| Money transfers | 29.947% |
| Cash advances | 29.947% |
| Min credit limit | £100 |
| Max credit limit | Subject to status |
| Additional cards available | 1 |
| Incentive | 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. Card can also be used as a Clubcard to collect standard points at 1 point per £1 spent on shopping and 1 point per £2 spent on fuel. Points are converted to Tesco vouchers which can be used towards shopping or exchanged for Partner Rewards. |
Review by
Chris Lilly
chris.lilly@finder.comChris 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
Tesco has a very comprehensive range of credit cards – so this one has been designed with quite a specific target audience in mind. It’s ideal for Tesco shoppers who want to stop paying interest on existing credit card debt but who might also benefit from 0% interest on upcoming purchases. Got that? Great!
If your goal is purely to clear existing card debt faster and more cheaply than you’re managing to currently, then you should start by checking out no balance transfer fee deals. This card comes with a 1.99% transfer fee, which could get painful on larger balances. No-fee deals tend not to have market-leading 0% periods but are the cheapest option if you believe you can clear your debt in the timeframe they offer. If you definitely want as long as you can possibly get at 0%, then you are going to have to pay a transfer fee, and may need to focus on pure balance transfer deals (rather than “matched” balance transfer and purchase deals).
Likewise, if you’re only looking for 0% interest on upcoming purchases, there are longer 0% periods available from Tesco or other providers.
But as balanced/matched deals go, this one’s a pretty solid bet – even earning you Clubcard points on purchases. Bear in mind that you can transfer up to 95% of your personalised credit limit, and as you might expect, transfers from other Tesco Bank cards are a no-no.
The Tesco Bank Clubcard Balance Transfer and Purchases Credit Card is issued on the Mastercard network so it's accepted at nearly 53 million merchants across more than 210 countries and territories.
Pros and cons
Pros
- Over a year of 0% interest to focus on reducing existing card debt
- Over a year to spread the cost of purchases
- Earn Clubcard points on day-to-day spending
- No annual fee
Cons
- Relatively high money transfer fee
- You may be offered an opening credit limit as low as £100
How does it compare with other matched 0% deals?
Table: sorted by length of 0% offer
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 either damaging your credit score, getting hit with a penalty fee (£12) or losing any promotional rates as a result. 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 20 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 Clubcard Balance Transfer and Purchases Credit 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.
Frequently asked questions
What credit limit will I get with the Tesco Bank Clubcard Balance Transfer and Purchases Credit 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 Clubcard Balance Transfer and Purchases Credit 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 Clubcard Balance Transfer and Purchases Credit 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 43% 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).
How much does it cost to use the Tesco Bank Clubcard Balance Transfer and Purchases Credit Card abroad?
Non-sterling transactions are subject to a 2.75% charge. For example, if you spend 200 euros (£169.26), it'll cost you around £4.65 in fees.
What is the minimum payment on the Tesco Bank Clubcard Balance Transfer and Purchases Credit 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.
Finder credit card ratings
★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
Our experts score matched/balanced credit cards to determine their value against similar products on the market. We look at a number of important factors, like the length of the introductory offer, balance transfer fees, any restrictions to the offer, 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.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.