The Tesco Personal Finance Clubcard credit card has extended its 0% interest deal on purchases from six to 12 months. It is only available to new customers though and starts when the new credit card account is opened.

At 2%, the Tesco credit card already boasts one of the most competitive balance transfer rates. It also offers 0% interest for six months on the balance transfer.

Commentators have noted that competitors have had to be equally generous, with Virgin credit card responding to Tesco’s inroad with 0% on balance transfers for 16 months.

Although Virgin is unable to beat Tesco’s offer of five Clubcard points for every £4 spent in their superstore.

Although a relative newcomer to the sector, Tesco Personal Finance is now ranked as the U.K.’s eighth largest credit card provider. Tesco has already announced its intention to operate banking facilities within its stores and hopes to offer customers current accounts later on in the year.

Guest Article by Neil Camp