The best credit cards in a competitive market

Tesco clearly intends to compete with the best when it comes to credit cards and it has just extended its 0% on purchases offer to 13 months.  This is the longest introductory 0% purchase offer currently available.   It also offers 0% on balance transfers for nine months for a fee of 2.9% of the amount transferred.  When you do start to pay interest the rate charged is 16.9%. 

You also earn one Clubcard point for every £4 spent on the card – anywhere in the world.  Tesco points out that if a customer spends £75 per week over 10 weeks in a non-Tesco store using their Tesco Clubcard Credit Card, they would collect up to 187 Clubcard points. If they were to spend the equivalent on groceries over 10 weeks in a Tesco store, they would receive up to 1,500 points with the double points initiative and in addition, up to 187 points for using their Tesco Clubcard Credit Card.  The total of 1687 points equates to £16.87 in Clubcard vouchers.

‘This is an attractive proposition from Tesco and is yet another example of the positive deals we have been seeing in the credit card market recently,’ commented Kevin Mountford, head of banking at Moneysupermarket.com.  ‘It’s encouraging to see providers competing for business with competitive products.’ 

However, if it is a 0% balance transfer you are looking for there are better deals around.   Both NatWest/RBS’s Platinum card and Yorkshire/Clydesdale Bank’s Gold Mastercard offer 16 months interest free for a transfer fee of 2.9% and 3% respectively of the amount transferred.

Those who shop at Sainsbsury’s might prefer the offer of 12 months interest free on both purchases and balance transfers.  Barclaycard Platinum and Virgin also offer the same deal but with higher interest charges when you eventually start to pay interest.