My favourite card for 0% on purchases

This market-leading credit card offers 12 months' interest-free credit on new purchases - with an extra bonus feature that is truly the icing on the cake for John Fitzsimons...

Credit cards, as a rule, don’t do it for me. I didn’t bother with one until I reached the age of 25, and have not used it very much since.

However, as soon as Tesco came out with its Clubcard Credit Card, I immediately decided to apply for it. Here’s why I think this card is absolutely perfect for me – and may well be for you too.

How Tesco has helped me to pay for my honeymoon

With the Clubcard Credit Card, you pay 0% interest on all purchases for a full 12 months from when the account is opened - double the interest-free period previously on offer.

That makes this card a market-leading card for 0% on purchases.

So if you have big purchases planned, and want to spread the payments without increasing the cost, this is a top card to use.

I got married last year, with all that entails moneywise. But this card helped make that fortnight in the Caribbean a reality, as I have happily spread my payments for the church, cake and wedding DJ extraordinaire, knowing my debt is interest-free.

Watch out though: there is also a 0% interest on balance transfers for six months on this card, which sounds tempting... but if you’re planning to use the card to make new purchases, I’d steer clear of this so-called ‘benefit’. This is due to negative order of payment – watch this video to find out more.

Similarly, there’s a ‘buy now, pay later’ facility, which allows card holders to make purchases from Tesco Direct on a range of selected items over £250, interest free, for six months. But again, you should avoid taking advantage of this, as you will be charged interest on this debt after six months, but won’t be able to pay it off until you’ve cleared the rest of your entire balance.

And please bear in mind that, once those 12 months are up, it is massively important to pay off your full balance, or you’ll be hit with a 16.9% interest rate.

I fill my fridge with Tesco

Another reason why I like this card is because I do most of my food shopping in Tesco.

And like most Tesco worshippers, I collect my clubcard points in much the same way that I used to collect football stickers as a child – devotedly. At the moment, I get two clubcard point for every £1 I spend in-store.

But with this new card, I’ll get five clubcard points for every £4 I spend in the store, with a single clubcard point for every £4 I spend elsewhere.

As our monthly Tesco shopping bill typically comes in at more than £200, that’s an extra 50 clubcard points a month, in addition to any shopping I do elsewhere – which is not to be sniffed at.

The alternative

Of course, there are other cards which may suit you better, particularly if you have existing credit card debt.

As you might expect, Sainsbury's is Tesco's biggest rival in this market as well. Sainsbury's is also offering 0% on purchases for 12 months, with its card, the Sainsbury's Finance Nectar Card Credit Card Mastercard. Just bear in mind, to qualify for this card, you must already have a Nectar card and have had it swiped in the last six months.

If you have existing credit card debt, however, you may prefer this card because it also offers 0% on balance transfers for 12 months. So you can transfer your existing debt onto this card, and you won't pay any interest for 12 months. You also won't get caught out by negative order of payment, because the 0% balance transfer period and the 0% purchases period are exactly the same.

• Watch our video on the Sainsbury's Finance Nectar CardMastercard

So if you're a regular Sainsbury's shopper, have existing credit card debt or if the merest sight of the Tesco logo brings you out in hives, then the Clubcard Credit Card is not for you. But if you’re planning to make some large purchases in the next year or your shopping habits are a contributing factor to Tesco’s massive profits, then the Tesco Clubcard Credit Card merits serious consideration.

After all, every little helps....

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