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The Tesco Bank Balance Transfer and Purchases Credit Card is a no-fee card that combines 21 months at 0% interest on both new purchases and balance transfers, with Clubcard points on eligible spending on top. The guaranteed 21-month period is a genuine differentiator in a market where many cards advertise "up to" figures that not everyone actually receives. The "guaranteed" period means that all accepted applicants receive the full promotional length (and not a shorter length for some people).

Always make sure you can afford repayments.

Representative example: Based on an assumed credit limit of £1,200 and borrowing of £1,200 at a purchase rate of 24.9% p.a. (variable) with no annual fee, the representative APR is 24.9% variable.

0% on purchases

New purchases are interest-free for 21 months from account opening, guaranteed for all accepted applicants. This gives cardholders a straightforward window to spread the cost of purchases without interest, provided at least the minimum monthly payment is made on time throughout.

If the balance is not fully cleared by the end of the 21 months, interest begins accruing on whatever remains at the standard purchase rate of 24.9% p.a. variable.

0% on balance transfers

Existing credit card or store card debt can be transferred to this card at 0% interest for 21 months, subject to a 2.95% transfer fee on the amount moved. Transfers must be completed within 90 days of account opening to qualify for the 0% rate, and up to 95% of the available credit limit can be transferred.

To illustrate the cost of the fee: on a £3,000 balance transfer, a 2.95% fee would amount to £88.50. Whether this is outweighed by interest saved depends on the rate currently being paid on the existing card.

Note: you cannot transfer balances from other Tesco Bank credit cards.

Clubcard points

The card earns additional Clubcard points on eligible spending, on top of the points already earned through standard Clubcard membership:

Points are calculated on single transactions and some exclusions apply, including tobacco, lottery, stamps, prescription medicines, Tesco gift cards and infant formula milk. Full details are at tescobank.com/credit-cards/rewards.

Clubcard points convert to vouchers at a rate of 100 points = £1, issued every three months once 150 points have been collected in a period. Vouchers can be used at Tesco in-store and online, or redeemed through Clubcard Boost with participating partners for up to 4x their face value.

One additional benefit worth noting: using this card as your Clubcard also unlocks Clubcard Prices in-store, meaning prices automatically fall when you tap to pay.

Things to consider

• The 24.9% standard APR is consistent with most other 0% promotional cards in the market but worth bearing in mind for anyone who might carry a balance beyond the promotional period.

• The Clubcard points earn rate on general out-of-store spending (1 point per £8) is modest. For those whose spending is mainly at Tesco, the in-store earn rate is more meaningful; for general everyday spending, a dedicated cashback card may return more over time.

• Applying for this card involves a hard credit search. Using Tesco Bank's eligibility checker beforehand shows your likelihood of acceptance without affecting your credit score.

Also from Tesco Bank: Everyday Low APR Credit Card

For those less interested in a promotional period and more focused on keeping the ongoing interest rate low, Tesco Bank also offers the Everyday Low APR Credit Card. This card carries a representative APR of 12.9% variable on purchases (significantly lower than the standard rate on most 0% promotional cards) and also earns Clubcard points on eligible spending. It has no annual fee. This may be worth considering for those who anticipate carrying a balance beyond any introductory period, as the lower ongoing rate could result in lower interest charges overall.

Representative example (Everyday Low APR): Based on an assumed credit limit of £1,200 and borrowing of £1,200 at a purchase rate of 12.9% p.a. (variable) with no annual fee, the representative APR is 12.9% variable.

Summary

Card details correct as of July 2026, sourced from tescobank.com. Terms, rates and features are subject to change. Always verify current details at tescobank.com before applying. This article is for general information only and does not constitute financial advice.

Without this purchases credit card, as part of basic Clubcard membership, shoppers already earn 1% on their Tesco shopping and 0.5% Tesco Fuel. You'd get these underlying rewards paying with any credit card, including other rewards cards.

Alternatives to the Tesco Balance Transfer & Purchases Credit Card

To better understand the value and suitability of the Tesco Balance Transfer & Purchases credit card, you need to understand some other available options.

Tesco Purchases Card vs The Nectar Card by American Express

The Nectar Credit Card by American Express rewards rate on general (out of store) spending is around 1%. This is on top of Nectar points you earn at Nectar partners as part of the loyalty programme. The Nectar Card's rewards card costs £30 per year, however (£0 in the first year). Rewards earned from spending £3,000 a year would cover the annual fee. American Express is not accepted everywhere.

Based on an assumed credit limit of £1,200 at a purchase rate of 29.1% p.a. (variable) and an annual fee of £30 (waived in the first year), the representative APR is 35.8% variable.

Tesco Purchases Card vs Platinum Cashback Everyday Card by American Express

The Platinum Cashback Everyday card from American Express is a cashback credit card with no annual fee. The ongoing cashback rate is 0.5% on spending up to £10,000 per year, rising to 1% on spending above that threshold. New cardholders who have not held a personal American Express card in the previous 24 months can earn 5% cashback for the first five months, on up to £2,500 of spending, capped at £125. A minimum annual spend of £3,000 is required to earn any cashback in a given year. Cashback is paid as a statement credit once a year.

Representative example: Based on an assumed credit limit of £1,200 at a purchase rate of 29.1% p.a. (variable) with no annual fee, the representative APR is 29.1% variable.

Tesco Purchases Card vs The Partnership Card

The John Lewis Partnership Credit Card is a no-annual-fee rewards card that earns Partnership points on spending, redeemable as John Lewis and Waitrose vouchers. The earn rate is 5 points per £4 at John Lewis and Waitrose, equivalent to a rewards rate of around 1.25% at those stores. Spending outside John Lewis and Waitrose earns 1 point per £10, following a reduction in the out-of-store rate in August 2025. Points convert to vouchers at 500 points = £5, issued automatically up to three times a year once the threshold is reached. Vouchers can be used at John Lewis and Waitrose only. A 2.75% foreign transaction fee applies, making the card less suited to overseas use.

Representative example: Based on an assumed credit limit of £1,200 at a purchase rate of 29.9% p.a. (variable) with no annual fee, the representative APR is 29.9% variable.