Tesco Bank has sent tremors through the Balance Transfer Credit Card sector with the release of its Clubcard Credit Card which doesn’t charge a balance transfer fee. It offers a 10 month 0% promotional period in which a cardholder is not obligated to pay anything whatsoever on purchases and balance transfers.
What the new Clubcard Credit Card offers you
1. A 10 month 0% period on balance transfers with no fee paid on the debt transferred to the card from other credit cards.
ï This period is aimed at borrowers with a sizable amount of debt who are prepared to formulate a regimented, year-long plan concentrated on combatting their debt, but require a substantial period of time to facilitate their reparations
2. A period of 10 months where no interest is paid on purchases
3. The advantage, specific to Tesco, of obtaining clubcard points when you make purchases with the new card.
ï You will earn 5 clubcard points for every £4 spent in a Tesco’s branch
ï You will earn 5 clubcard points for every £4 spent on fuel in a Tescoís petrol station. This excludes Esso Fuel.
ï You will earn 1 clubcard point for every £4 you spend with the new card elsewhere.
4. You are at liberty to transfer debts from other credit cards to the new card for 10 months interest free, on the condition you make the minimum compulsory payments on time. However, following completion of the 10-month promotional period, the far more costly 18.9% APR will kick in, so it is advisable to not leave yourself with any outstanding debts and be diligent with minimum payments.
Take Care in your Repayments
The advantages of obtaining a 0% purchase card if you are a borrower struggling with short or long term debts are undoubtable. Providing a comfortable way of paying off debt through their 0% interest on promotional periods, Tescoís card seems like a no-brainer for ailing debtors. However, the number of savers who trigger the higher interest rate following the completion of their promotional period is staggering, and you ought to strive not to join that cluster of irresponsible borrowers.
Moreover, the failure to meet minimum repayments, monthly or bi-weekly, will also trigger the higher interest rate, leaving you stranded in quicksand. Not only will it trigger the higher rate, but your credit rating will be shot for a substantial period of time, and you will most likely receive a black mark on your credit report.
Although it is tempting to engage in ultimately reckless, giddy, financial pursuits upon realisation that you have no interest to pay on your outstanding debt; in reality, you will be setting yourself up for a painful fall, when your debt piles up, and the end result will never be beneficial to you.
It is strongly recommended that upon enrolment into the balance transfer card scheme, regardless of the conditions, that you set up a direct debt with Tesco Clubcard Credit Card, so you can guarantee payments are made on time, and in calculated fashion, so as to avoid the crippling 18.9% APR.
It is comforting to know that your card is thoroughly safeguarded in the case of misadventure.
You are guaranteed if someone commits fraud online with your card, so that you will not have to pay anything. Furthermore, the Tesco team will contact you immediately if any suspect transactions come up on their records.
If you happen to misplace your card or lose it oversees, or whilst indulging in recreational activity, Tesco will replace your card, and could even provide you with a cash advance if you are in financial need. Additionally, registering online provides your card with an added tier of security, due to the online registration of your card.
Any queries can be directed to Tescoís UK call centre, open 24 hours a day, which will aid you to the best of their ability. You will receive text alerts when youíre approaching your credit limit, reining you in when you need to be most.
With the numerous perks available, and the inherent convenience which comes with debt management via a balance transfer card, the new Tesco Clubcard Credit Card is a must for any individual seeking to responsibly and thriftily combat their debt.