The Best Tesco Bank Credit Cards

Tesco Credit Cards

For over two decades you have been able to apply for a credit card alongside your weekly groceries. Tesco Bank started as a joint venture with Royal Bank of Scotland in 1997, before becoming a wholly owned subsidiary in 2008. In that time, it has become a regular feature on the best buy tables, known not only for its Clubcard rewards scheme but also for offering some of the most competitive interest-free periods around.

The bank’s portfolio is extensive when it comes to offers regarding purchases, balance transfers and money transfers. And while the focus is largely on those with good or excellent credit, Tesco bank also has an option for those with poor credit who are looking to improve their credit score.

What does Tesco do well?

What Tesco does well is interest-free introductory periods. If you are perusing the best buy tables at the weekend, or searching through the comparison sites, the likelihood is you will see Tesco Bank in the mix for cards with the longest introductory offers on purchases, balance transfers or money transfers. Whatever the longest interest-free period is on the market at the time, Tesco will almost always be within a few months of it.

The bank also offers ‘all round’ cards, which include multiple interest-free introductory offers. For example, you can have a Tesco credit card which offers you 0% on purchases and 0% on balance transfers. The length of the introductory periods will match (which is a plus), but will be shorter than the cards which specialise in just one or the other.

If you know the Tesco brand then you will know about its Clubcard loyalty scheme. You may already be a member, and therefore can use your Tesco card to earn yourself even more points, or you may be new to the scheme altogether. Either way, your Tesco credit card can act as your Clubcard.

When spending with your Tesco credit card you can earn a higher yield of points for spending in store, or a lower yield when spending elsewhere. Clubcard points are then turned into vouchers every three months which can be used on your shopping or on fuel. Or you have the option to ‘boost’ the value of the voucher by using it with Clubcard Reward Partners which include the likes of Pizza Express, Cineworld Cinemas and Legoland. The latter can be a great option, since it stretches your points much further.

What you get in a Tesco credit card is access to a popular and wide-reaching reward points scheme, as well as interest-free introductory offers galore. And let’s not forget, Tesco also caters to those with a less than perfect credit score. Its credit builder credit card offers borrowers the ability to improve their credit score through responsible borrowing, while also offering access to the Clubcard points scheme in line with its core Tesco card offering.

Check out our new credit card repayment calculator

Where does Tesco fall down?

While you may be interested in the interest-free offers, always check the small print. The bank does include balance transfer and money transfer fees on some of its credit cards and while the balance transfer fee is in line with the market average, the money transfer fee is slightly higher. Added to that you are likely to come across a foreign transaction fee in the mix as well.

One other area Tesco credit cards fall down is the reward scheme. While the Clubcard scheme may be well known, that doesn’t necessarily mean that you will be getting the most value for your money by using your Tesco card to earn points. You have to spend a reasonable amount in order to earn yourself a decent number of points, and the rewards points yield is very much skewed towards spending in-store or online with Tesco. The option to drastically boost your points value helps, but only if you’re a fan of the brands that partner with Tesco.

What will you find in Tesco’s card portfolio?

If you are looking for interest-free offers then Tesco’s portfolio is a good place to look. It has something for everyone with 0% purchases, 0% balance transfers, 0% money transfers and dual offer cards. There are even options available now for fee-free balance transfers and money transfers, so it’s worth having a look through and see which combination would suit your borrowing needs best.

If you are looking for a big rewards yield or cashback, Tesco is less likely to stump up the goods. It does have its Clubcard scheme, but as I mentioned, this is fairly limited in terms of how many points you can earn for how much you spend. If you are a very big Tesco shopper and frequent Tesco’s partners – and therefore can take advantage of the points boost – then the story may be different for you.

Similarly, if it is travel benefits or insurance options you are after, Tesco has chosen to keep it simple and focus on its introductory offers and Clubcard points instead.

How to apply for a Tesco card

You can apply online through the Tesco Bank website, and you will receive a response in under 10 minutes.

The bank requires that you have a minimum annual income of £5,000, are 18 years of age and are a UK resident. You will not be eligible if you already hold a Tesco Bank credit card or have applied for one in the last month.

Tesco Bank asks that you have a good credit score, unless you are applying for its credit builder credit card, which is designed for applications with a poor credit history.

More ways to compare credit cards

Top credit card picks by category

Top credit card picks by issuer

The Motley Fool receives compensation from some advertisers who provide products and services that may be covered by our editorial team. It’s one way we make money. But know that our editorial integrity and transparency matters most and our ratings aren’t influenced by compensation. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. The Motley Fool has recommended shares in Lloyds, Tesco and Barclays.