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Tesco Foundation Credit Card review 2020
Last updated:
Helping you to improve and rebuild your credit rating while earning you Tesco Clubcard points on day-to-day spending.
You say: ★★★★★We say: ★★★★★
Representative example: When you spend £1,200 at a purchase rate of 27.542% (variable) p.a., your representative rate is 27.5% APR (variable).
27.5%
Representative APR
£0
Account fee
Earn 1 point
per £8 spent
Up to 56 days
Interest-free each billing period
Details
| Issuer | Tesco Bank |
|---|---|
| Network | Mastercard |
| Annual/monthly fees | £0 |
| Balance transfers | 27.542% |
| Balance transfer fee | 3.99% |
| Purchases | 27.542% |
| Purchases interest-free period | Up to 56 days |
| Money transfers | 39.941% |
| Cash advances | 39.941% |
| Min credit limit | £100 |
| Max credit limit | Subject to status |
| Additional cards available | 1 |
| Incentive | Collect 1 Tesco Clubcard point per £4 spent (£4 minimum) in Tesco and 1 Clubcard point per £8 spent (£8 minimum) outside Tesco in each purchase transaction. Must have available credit to collect Clubcard points. Clubcard points are turned into Clubcard vouchers every 3 months or sooner using Faster Vouchers. Clubcard vouchers can be used in Tesco or with Clubcard Reward Partners to get even more value on dining out, hotel stays and travel. |
Expert review
Review by
Chris Lilly
chris.lilly@finder.comChris 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’ve got poor credit and are hoping to improve it, the Tesco Foundation Card is one of just a handful of “credit building” cards on the market that lets you collect rewards while helping you to improve your credit score.
Technically any credit card, used correctly, can help improve your credit score, but this card offers a number of tools to help you protect and improve your it – like text/email alerts and visibility of your credit report and score – along with advice on some of the key factors affecting it.
Expect to start small with a low, manageable credit limit, but with the promise of regular optional credit limit increases if you manage your account well.
While perks are usually few and far between with this type of card, you’ll be able to collect Tesco Clubcard points on all your day-to-day spending – 1 point per £8 spent (and you’ll collect these at a higher rate when you shop at Tesco – 1 point per £4 spent).
Pros and cons
Pros
- Applicants with low credit scores may be eligible.
- Customers report excellent customer service when dealing with Tesco Bank.
- Earn points on day-to-day spending.
- No annual fee.
Cons
- Relatively high balance transfer fee.
- Relatively high money transfer fee.
- You may be offered an opening credit limit as low as £100.
How does this card compare with other similar cards on the market?
Table: sorted by representative APR, promoted deals first
Repayment options
When it comes to repayments, you can make manual repayments online or over the phone (0345 300 4278), or alternatively set up a direct debit. A direct debit is a great idea because it protects you from forgetting to make a repayment and either damaging your credit score, getting hit with a penalty fee 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 for the Tesco Bank Foundation Clubcard Credit Card Mastercard
If you’ve compared cards and want to apply, 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.