Tesco Foundation Credit Card review 2024
- Representative example:
- When you spend £1,200 at a purchase rate of 29.9% (variable) p.a., your representative rate is 29.9% APR (variable).
- Minimum credit limit
- £100
- Interest-free each billing period
- Up to 56 days
- Account fee
- £0
Our verdict
Helping you to improve and rebuild your credit rating while earning you Tesco Clubcard points on day-to-day spending.
This card stands out among credit-builder cards because they rarely offer much in the way of perks, but this one lets you earn Clubcard points on day-to-day spending (at Tesco and elsewhere). This is one of the reasons we've chosen it as our top pick for bad credit. With this card, you can also track your credit score through Tesco Bank CreditView, which is a helpful addition.
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 as well as 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 – 1.25 points per £1 spent).
Pros
-
Offers a rewards scheme
-
Access to your credit report and score
-
Handy text and email alerts
Cons
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Could tempt users into spending just to chase points
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CCJs are a no-no for Tesco Bank
Details
Product Overview
| Issuer | Tesco Bank |
| Network | Mastercard |
| Representative APR | 29.9% |
| Annual/monthly fees | £0 |
| Balance transfers | 29.947% |
| Balance transfer fee | 3.99% |
| Purchases | 29.9% |
| Purchases interest-free period | Up to 56 days |
| Money transfers | 39.941% |
| Cash advances | 39.941% |
| Minimum credit limit | £100 |
| Maximum credit limit | Subject to status |
| Additional cards available | 1 |
| Incentive | 5 points per £4 spent (£4 minimum) in Tesco and 1 point per £8 spent (£8 minimum) outside Tesco. Must have available credit to earn points. Points are converted to Tesco vouchers or can be exchanged for Partner rewards to receive money off a variety of restaurants, entertainment or Avios points. |
| Additional Rewards Info | Free Tesco Bank CreditView giving 3 years' unlimited access to credit score and report via TransUnion, credit alerts and CreditView report updated every 28 days to monitor changes. |
| Potential costs | 3.8 ★★★★★ |
| Doing its job | 4.4 ★★★★★ |
| Extras | 4.0 ★★★★★ |
| Overall Finder Score | 3.9 ★★★★★ |
Fees and charges
| Minimum monthly payment | 1% or £25 (whichever is greater) or the total of any interest, default fees and charges plus 1% of the outstanding balance plus any arrears. |
| Annual/monthly fees | £0 |
| Balance transfer fee | 3.99% |
| Money transfer fee | 3.99% |
| Foreign usage charge (EU) | 2.75% |
| Foreign usage charge (rest of world) | 2.75% |
| Cash advance fee | 3.99% (min. £3) |
| Late payment fee | £12 |
| Replacement card fee | £0 |
| Duplicate statement fee | £0 |
| Exceeding limit fee | £0 |
| Additional card fee | £0 |
| Dormancy fee | £0 |
Application Requirements
| Minimum Age | 18 |
| Minimum income | £5,000 |
| Residency | UK residents |
| Availability | Available to new customers |
The Tesco Bank Foundation Card is issued on the Mastercard network, so it's accepted at more than 50 million merchant locations across more than 210 countries and territories.
How does it compare?
Tesco Bank's card
Other popular credit builders
Approval for any credit card depends on your status. The representative APRs shown represent 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. Most of the data in Finder's comparison tables is provided by Moneyfacts.
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 damaging your credit score – making it harder and more expensive to borrow money in the future – and getting hit with a penalty fee (£12) 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 Foundation 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
Finder credit card scores
Our experts score credit builder credit cards to determine their value against similar products on the market. We look at a number of important factors, like interest rates, credit limits, features to help you track your credit, 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.
