Tesco Low APR Credit Card review | 9.9% | Finder UK

Tesco Bank Low APR Credit Card review

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If short-lived 0% deals aren't your thing and you're more interested in a low, ongoing (albeit variable) rate, this card's hard to beat.

You say: ★★★★★We say: ★★★★★

Representative example: When you spend £1,200 at a purchase rate of 9.942% (variable) p.a., your representative rate is 9.9% APR (variable).

9.9%

Representative APR

£0

Account fee

Up to 56 days

Interest-free each billing period

£100

Minimum credit limit

Details

IssuerTesco Bank
NetworkMastercard
Annual/monthly fees£0
Balance transfers10.362%
Balance transfer fee4%
Purchases9.942%
Purchases interest-free periodUp to 56 days
Money transfers10.362%
Cash advances24.942%
Min credit limit£100
Max credit limitSubject to status
Additional cards available1
Incentive1 point per £4 spent (£4 minimum) in Tesco and 1 point per £8 spent (£8 minimum) outside Tesco, must have available credit to earn points. Card can also be used as a Clubcard to collect standard points at 1 point per £1 spent on shopping and 1 point per £2 spent on fuel. Points are converted to Tesco vouchers which can be used towards shopping or exchanged for Partner Rewards.

Expert review

Chris Lilly

Review by


Chris Lilly is a publisher at finder.com. He's a specialist in credit-based products including business and personal loans, mortgages and credit cards, and is passionate about helping UK consumers make informed decisions about their borrowing. In his spare time Chris likes forcing his kids to exercise more.

Expert review

If you’re looking to keep things simple with a straightforward, cheap credit card and you collect Clubcard points, the Clubcard Credit Card with Low APR is a very strong contender.

Because the rates are low indefinitely, you don’t need to set any calendar reminders for expiring introductory deals. Just bear in mind that the rate is variable (meaning that Tesco Bank will periodically change it at their discretion) and, crucially, can be tailored to the individual applicant.

If you want to save interest on significant existing credit card debt, or if you’re looking to spread the cost of a large upcoming expenditure, there are better options (at least in the shorter-term) available from both Tesco Bank and other card issuers. There are numerous 0% interest offers available, which are great while the interest-free period lasts, but usually best ditched after that point.

As with all Tesco Bank credit cards, you’ll be able to earn additional Tesco Clubcard reward points on your day-to-day spending, and you’ll earn these at a higher rate when you shop at Tesco.

The Tesco Bank Low APR Card is issued on the Mastercard network so it's accepted at nearly 53 million merchants across more than 210 countries and territories.

Pros and cons

Pros

  • A low ongoing interest rate (variable)
  • Earn Clubcard points on day-to-day spending
  • No annual fee

Cons

  • Applicants with low credit scores are unlikely to be eligible
  • Relatively high balance transfer fee
  • Relatively high money transfer fee
  • You may be offered an opening credit limit as low as £100

How does it compare with other low rate deals?

Table: sorted by representative APR, promoted deals first
Data updated daily
Name Product Purchases Balance transfers Annual/monthly fees Rep. APR Incentive Link
TSB Advance Credit Card Mastercard
0% for 3 months reverting to 7.95%
0% for 3 months
(0% fee)
£0
7.9% (variable)
Representative example: When you spend £1,200 at a purchase rate of 7.95% (variable) p.a., your representative rate is 7.9% APR (variable).
More Info
The Co-operative Bank 3 Year Fixed Rate Credit Card
8.9%
8.9%
(0% fee)
£0
8.9% (variable)
Representative example: When you spend £1,200 at a purchase rate of 8.9% (variable) p.a., your representative rate is 8.9% APR (variable).
More Info
MBNA Long Term Low Interest Credit Card
4.9% for 48 months reverting to 8.9%
4.9% for 48 months
(0.5% fee)
£0
8.9% (variable)
Representative example: When you spend £1,200 at a purchase rate of 8.9% (variable) p.a., your representative rate is 8.9% APR (variable).
More Info
Ulster Bank Credit Card Mastercard
9.9%
6.9%
(0% fee)
£0
9.9% (variable)
Representative example: When you spend £1,200 at a purchase rate of 9.9% (variable) p.a., your representative rate is 9.9% APR (variable).
More Info
The Royal Bank Credit Card
9.9%
6.9%
(0% fee)
£0
9.9% (variable)
Representative example: When you spend £1,200 at a purchase rate of 9.9% (variable) p.a., your representative rate is 9.9% APR (variable).
More Info
The NatWest Credit Card
9.9%
6.9%
(0% fee)
£0
9.9% (variable)
Representative example: When you spend £1,200 at a purchase rate of 9.9% (variable) p.a., your representative rate is 9.9% APR (variable).
More Info
Tesco Bank Low APR Card
9.942%
10.362%
(4% fee)
£0
9.9% (variable)
1 point per £4 spent (£4 minimum) in Tesco and 1 point per £8 spent (£8 minimum) outside Tesco, must have available credit to earn points. Card can also be used as a Clubcard to collect standard points at 1 point per £1 spent on shopping and 1 point per £2 spent on fuel. Points are converted to Tesco vouchers which can be used towards shopping or exchanged for Partner Rewards.
Representative example: When you spend £1,200 at a purchase rate of 9.942% (variable) p.a., your representative rate is 9.9% APR (variable).
More Info
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Approval for any credit card will depend on your status. The APR shown represents the interest rate offered to most successful applicants. Depending on your personal circumstances the APR you're offered may be higher, or you may not be offered credit at all. Fees and rates are subject to change without notice. It's always wise to check the terms of any deal before you borrow.

Repayment options

You can make manual repayments through Tesco Bank's app, by logging in to your online banking or over the phone (0345 300 4278). Alternatively you may wish to set up a direct debit.

A direct debit protects you from forgetting to make a repayment and either damaging your credit score, getting hit with a penalty fee (£12) or losing any promotional rates as a result.

You can arrange a direct debit for repayments when you apply for the credit card. The table below shows the options available.

Choose from the following direct debit options for your monthly repayments:

Minimum amount Fixed amount Fixed percentage Full amount

How to apply

If you've compared cards and settled on the Tesco Bank Low APR Card, completing the secure online application form takes about 15 minutes. Before you apply, check that you meet the eligibility requirements and have the information and documents you'll need to make the process as straightforward as possible.

Frequently asked questions

What credit limit will I get with the Tesco Bank Low APR Card?

If Tesco Bank is able to offer you this deal, the offer will specify a personalised credit limit based on Tesco Bank's assessment of your situation. The minimum limit offered on this card is £100 and Tesco Bank does not specify a maximum. Once you've had the card for a while and shown Tesco Bank that you're reliable, you may wish to apply for a credit limit increase.

Can I withdraw cash using the Tesco Bank Low APR Card?

Although it's possible, withdrawing cash from a credit card account is generally not a good idea, as "cash-like transactions" (withdrawing cash at an ATM, getting cashback at the till, spending at a casino, buying currency, etc.) often incur steep fees and/or higher rates of interest.

The cash advance fee on the Tesco Bank Low APR Card is 3.99% (min. £3). For example, if you withdraw £50, you'll incur a fee of £3.00. Withdraw £250, and you'll incur a rather painful fee of £9.98.

The interest rate on this part of your balance will be 24.94%, which is 152% more than the standard purchases rate (chargeable from the day of the transaction – the card's usual "up to 56 days interest-free" grace period won't apply).

How much does it cost to use the Tesco Bank Low APR Card abroad?

Non-sterling transactions are subject to a 2.75% charge. For example, if you spend 200 euros (£172.52), it'll cost you around £4.74.

What is the minimum payment on the Tesco Bank Low APR Card?

Each month you must pay at least 1% of your balance at that point or £25.00 – whichever of the two figures is greater. So if you had, say, £2,450.00 outstanding, you'd pay £25.00, and if you had £10,000.00 outstanding, you'd pay £100.00.

Paying only the minimum required amount each month is generally not advisable as it tends to be a very expensive way to borrow money which can lead to persistent debt.

Finder credit card ratings

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Our experts score low rate credit cards to determine their value against similar products on the market. We look at a number of important factors, like exactly how low the low rate is, any perks/benefits, plus the potential costs involved with running the card both in the short and longer term.

You can read more about our scoring criteria on our credit card methodology page.

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