Tesco now offer interest free purchases for a market leading 12 months with their Clubcard MasterCard credit card & give you the chance to earn Clubcard points whenever and wherever you shop.
Product Details
Tesco Bank - Tesco Clubcard Credit Card
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What's the deal?
The Tesco Clubcard MasterCard credit card now offers 0% on purchases for 12 months plus 0% on balance transfers for 6 months from account opening (a 2% handling fee applies to balances transferred within the first four months).
What's more, you can earn Clubcard points wherever and whenever you spend on the card so you get a little extra back too.
You'll earn 5 Clubcard points for every £4 you spend on the card in Tesco stores. However, you'll also accumulate 1 Clubcard point for every £4 you spend on the card elsewhere.
What makes it great?
The 12 month interest free purchase deal available with the Tesco Clubcard credit card is a marketing leading offer in itself. However, as an added bonus you also earn Tesco Clubcard points whenever you spend on the card.
You can choose to spend any Clubcard points you earn in-store, double their value by exchanging them for Rewards tokens (available on certain products) or swap them for Clubcard deals where you can quadruple their value.
You also have the option to trade in your Clubcard points for Airmiles, with £2.50 worth of Clubcard vouchers buying you 60 Airmiles.
Who would it suit?
The 12 month interest free purchase offer available with the Tesco Clubcard credit card makes it ideal for anyone who is looking to spread the cost of one (or several) big purchases over the course of a year without accumulating any additional interest.
However, it's also suited to those who want to get a little something back from their everyday credit card spending, whether they shop for groceries in Tesco or not.
What's the catch?
If you take advantage of the 0% offer on purchases you will need to ensure that you continue to make at least the minimum repayments throughout the 12 month interest free term - minimum repayments currently stand at at least 3% of the outstanding balance or £5 (whichever is less). If you fail to make at least the minimum repayment each month then it's likely that the 0% deal will be withdrawn.
Similarly, it's important to be aware that any balances you have remaining after the first 12 months have passed will start to accumulate interest at the standard rate (currently 16.9% APR variable).
You'll also need to be aware that cash withdrawals are not classed as purchases and will accumulate interest at a rate of 24.9% from the day the transaction is made.
Additionally, it's worth bearing in mind that you'll get the most out of this card if you either use it to make new purchases or to make balance transfers (not both) as otherwise you may get caught out by the negative order of payment applied to the card.
What's the alternative?
The First Direct Gold Visa is the only other credit card to offer interest free purchases for 12 months. However, it is only available to existing First Direct customers, making it an offering that isn't accessible to everyone.
Both the Marks & Spencer and MBNA Retail credit cards offer 0% purchases for 10 months, with the respective interest rates rising to 15.9% and 16.9% thereafter.
Additionally, quite a number of credit cards offer interest free purchases for 9 months. However, the Halifax and Bank of Scotland All in One MasterCard credit cards deserve a particular mention. Both cards offer 0% for 9 months on purchases and 0% for 9 months on balance transfers (subject to a 3% handling fee), leaving you free to take advantage of both interest free opportunities without getting caught out by the negative payment hierarchy.
We have done our very best to make sure that the information included in this Deal is accurate. However, sometimes offers can be withdrawn or changed at the last minute so please do check that you're able to redeem this Deal before parting with any money, or going out of your way to take advantage of the offer.
