Tesco Bank has upped the 0% promotional time period on its Clubcard Credit Card for purchases from 18 months to a market-leading 19 months. In doing so, Tesco Bank displaces Santander at the top of the 0% purchases best buy table.
What the new Clubcard Credit Card (CCC) means for you
1. A 3 month 0% period on balance transfers with a fee of 2.9% of the debt being transferred. This card is aimed at new customers seeking to spread the cost of expensive new purchases.
2. A period of 19 months where you pay no interest on any purchases made with the card.
3. The bonus of earning Clubcard points when you spend with the new CCC – you earn 5 Clubcard points for every £4 spent in a branch of Tescoís; 1 point for every £4 spent in other establishments.
4. If you donít pay off the debt accumulated by your spending before the end of the 19 month 0% period, the representative APR of 18.9%, comes into effect.
5. In order to qualify for the card you will need a good credit rating, be aged 18 or over, based in the UK and you must not currently hold a Tesco Bank Credit Card.
Hold your cards close to your chest
The benefits of a 0% purchase card are notorious amongst those with short term debt seeking a comfortable way of eradicating their debt. However, when jumping on the Tesco CCC scheme, you should ensure that you have a plan in place which will enable you to pay off purchases made in the 19 month promotional period. The ominous 18.9% APR that is activated following 19 months will strangle your finances, especially if youíre young and new to the working & savings world.
Moreover, you should ensure you make the minimum repayment during the promotional period, otherwise your credit rating will be severely affected and you will receive a black mark on your credit report.