Is Tesco’s balance transfer deal really terrific?
If you’re looking to transfer some or all of a balance on an existing card, Tesco Bank may be about to make you an offer you can’t refuse.
Not only has it improved upon the previous terms of its balance transfer credit card, they’ve extended the period at which a balance transfer remains interest-free. The fee is still 3.94%, but now they’ve added an extra five months to the period which it applies to, making it a grand total of 40 months.
You’ll have to hurry if you’re interested in taking up their offer though, because it’s only available for a short time, and is only available to customers who apply for it by April 28th this year. The 0% interest on balance transfers will apply to any balance transfer made inside of the initial 90 days of opening the account, and will remain in place for as long as customers make the stated minimum repayments. All payments have to be received in full, and on time.
The balance transfer market has been pretty competitive lately, with MBNA, Virgin, Halifax, and Tesco Bank all competing to top the league tables for the most attractive deal. Moneycomms’ verdict is that this is a great thing for people looking to save a bit of money on their outstanding credit card spend. There’s no sign of the balance transfer balloon bursting yet, either, as figures from the British Bankers’ Association showed that there were nearly 600,000 balance transfers in January alone, with a total of £1.35 billion. Moneycomms’ expert points out that this deal from Tesco takes them slightly above previous balance transfer leaders, Halifax, and that it’s entirely possible that Halifax or one of the other competitors will try to undercut Tesco in response.
Tesco Bank’s managing director, David McCreadie, says that this latest move is just another way which proves that Tesco are trying to help customers by providing them with the best choice of great value, easy to understand credit cards. With this, their longest ever 0% balance transfer offer on a credit card, they’re making their best deal ever available to customers, helping them manage their finances. As with all Tesco Bank credit cards, you’ll also earn Clubcard points on any new transactions made using the card, which is a great bonus.
While all this seems incredibly tempting, Moneycomms’ expert warns consumers not to get too enchanted by yet another chance to transfer an outstanding balance and buy yourself a bit more time to clear that debt. A zero percent interest deal on balance transfers is clearly a great thing, meaning you can keep on top of any debt and clear it quickly, but you have to remember that your lender is counting on you making additional spends on the card, or getting caught out and making a late payment, which will incur fees and potentially even kill off your great deal right away. Just because you’re getting more time to deal with the debt, it may not be the most economical or sensible way to deal with what you owe.