Tesco Bank credit cards - rates, benefits and more

Considering getting a new credit card? Perhaps you’re planning a large purchase, like a new car or a kitchen appliance. A credit card can help you spread the cost, as well as being useful for everyday spending.

There are a large number of credit cards available in the UK, so choosing the right one can be a little daunting. We’re here to help with a guide to Tesco Bank credit cards, which are a popular choice among regular Tesco shoppers.

Below, we’ll cover all the essentials you need to know about Tesco Bank credit cards. This includes features, interest rates and fees, along with eligibility requirements and how to apply.

We’ll also find out how Tesco Bank credit cards work abroad, which could be useful if you’ve got a holiday planned.

If you’re looking for a cheaper way to spend outside the UK, make sure to check out the Wise debit card. While it’s not a credit card, it’s a convenient international debit card designed for travellers looking to save money while spending abroad.

What credit cards does Tesco Bank offer?

Tesco Bank has a few different credit cards available. Each is designed for a different purpose, such as balance transfers or everyday spending.

Here’s the full list of options at-a-glance:¹

Credit card	APR (variable)	0% interest period	Rewards
Tesco Bank Balance Transfer Credit Card	24.9%	29 months for balance transfers 9 months for money transfers	Clubcard points
Tesco Bank Low Fee Balance Transfer Card	24.9%	15 months for balance transfers 9 months for money transfers	Clubcard points
Tesco Bank Low APR Credit Card	10.9%	N/A	Clubcard points
Tesco Bank Foundation Credit Card	29.9%	N/A	Clubcard points

Tesco Bank Balance Transfer Credit Card²

This is a card designed for transferring balances from other credit cards, with a 0% interest period for 29 months. There’s a transfer fee of 3.49% and you must make your transfers within 90 days of opening the account.

The card also offers the following features:

• 0% interest on money transfers for 9 months, with a 3.99% fee
• Collect Clubcard points when you spend.

The representative APR for purchases is 24.9% (variable).

Tesco Bank Low Fee Balance Transfer Card¹

Another option for balance transfers, this card offers a slightly shorter 0% interest period at 15 months. However, it has a lower transfer fee at just 0.99%.

It also offers:

• 0% interest on money transfers for 9 months, with a 3.99% fee
• Collect Clubcard points when you spend.

The representative APR for purchases is 24.9% (variable).

Tesco Bank Low APR Credit Card¹

If you’re looking to spread the cost of a purchase, this could be the credit card for you. The Tesco Bank Low APR Credit Card has an APR representative of 10.9% (variable). This is much lower than many credit cards on the market, although it doesn’t have an interest-free period on purchases.

You can’t make balance transfers or money transfers with this card. But you can earn Clubcard points on nearly all purchases.

Tesco Bank Foundation Credit Card³

Lastly, there’s the Tesco Bank Foundation Credit Card. This is designed for everyday spending, especially for people who need to build their credit score.

Starting credit limits are on the low side, at between £250 to £1,500. And the APR representative on spending is on the high side at 29.9% (variable). But if you’re looking for a card to help you build your credit rating and are having trouble getting accepted elsewhere, this could be a decent option.

It also offers the chance to earn Clubcard points on nearly all spending.

Tesco Bank credit card fees

Now we come to the important question - how much will it cost you to have and use a Tesco Bank Credit Card? Let’s run through a few of the main fees and charges you need to know about.

Annual/monthly fees

The great news is that none of Tesco Bank’s credit cards have an annual or monthly fee. So, you won’t pay a penny to get one.

Fees for using Tesco Bank credit cards⁴

All credit cards have some fees, and Tesco Bank’s cards are no exception. Here are the charges you need to keep an eye out for:

Transaction	Fee
Balance transfer	0.99% to 3.49% depending on card¹
Money transfer	3.99%
Cash withdrawal fee	3.99%, min. of £3
Cash transaction fee	3.99%
Late payment fee	£12
Exceeding credit limit	£12

Can I use Tesco Bank credit cards abroad?

You can use your Tesco Bank credit card while on holiday or travelling in other countries, but a word of caution. None of Tesco’s credit cards are specially designed for travel, so using them overseas can be expensive.

For starters, you’ll be charged a foreign exchange fee of 2.75% on any payments made in foreign currencies. If you use your card to withdraw cash at an ATM, a fee of 3.99% will apply - with the foreign exchange fee on top.⁴

There’s also the exchange rate to consider. When you spend in another currency, a conversion will need to be done. Tesco Bank uses Mastercard credit cards, so is likely to use the Mastercard exchange rate for currency conversions. This isn’t one of the worst rates around, but it can possibly be beaten - especially for some currencies.

However, there’s no getting around those fees. This could make a Tesco Bank credit card one of the costliest ways to spend while abroad.

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If the fees for using a credit card abroad are off-putting, consider an alternative solution for spending overseas.

The Wise debit card, while not a credit card, is the perfect low-cost solution for travellers, holidaymakers and expats. It’s the perfect travel companion, as it’s contactless, works worldwide and is compatible with mobile wallets. Best of all, it has no foreign transaction fees.

You can use your Wise debit card for spending and cash withdrawals in a whopping 40+ currencies, in 150+ countries. This means that there’s no need for separate cards for multi-destination trips - you can do it all with just the one card.

Here are all the advantages at-a-glance:

• You can open a Wise account online
• Get a Wise debit card for a one-time cost of just £7
• No monthly fees
• No foreign transaction fees
• Automatically converts currency at mid-market exchange rates, only adding a small conversion fee
• Withdraw up to £200 a month (max. 2 withdrawals) for free (Wise will not charge you for these withdrawals, but some additional charges may occur from independent ATM networks). Fee of 1.75% + 0.50 for withdrawals over this limit.

You can manage your card and account in the handy Wise app, wherever you are in the world. This includes options to freeze your card if you lose it.

Sign up with Wise today 💰

How to apply for Tesco Bank Credit Cards

If one of Tesco Bank’s credit cards sounds like it’ll be a good fit for you, you’ll need to know how to apply. But before you do, it’s a smart idea to check the eligibility requirements.

Like other credit card providers, Tesco Bank has a handy tool for checking your eligibility before you apply. This can let you know whether or not you’re likely to be accepted or not. Crucially, this can prevent your credit score from taking a hit if you apply for the card and are rejected.

Eligibility requirements

Tesco Bank credit cards are available for UK residents aged 18 or over.¹

And as with most credit cards, you’re more likely to be accepted if you have a good credit score and a strong credit history.

What will I need?

To apply for a credit card, you’ll usually need to provide the following:

• Proof of identity - such as a passport or driving licence
• Your name, date of birth and address - you’ll usually need to provide at least three years of addresses, if you’ve moved within the last few years
• Your contact details
• Details of your income and employment.

How to apply - step-by-step

You should find it relatively quick and easy to apply for a Tesco Bank credit card online.

Here’s what to do:

1. Go to the Tesco Bank website
2. Read the details for your preferred credit card, including the fees, APR, terms and conditions
3. Click ‘Learn more and apply’
4. Click the ‘Check my eligibility’ button and complete the eligibility checker tool
5. If you’re likely to be accepted, you can apply online.
6. Follow the on-screen instructions, providing your details and uploading ID documents when requested.
7. Check all your details and submit the application.
8. Your application will either be accepted, declined or referred - this means that the provider needs more information from you in order to process the application.
9. If successful, you should receive your new credit card within a few weeks.

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And that’s it - your essential guide to Tesco Bank credit cards, including all of the different options available. We’ve looked at fees, interest rates, features and how the cards work abroad.

So, you should now have all the info you need to decide if a Tesco Bank card is right for you - and get your application in.

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Sources used:

1. Tesco Bank - Credit cards
2. Tesco Bank - Balance Transfer Credit Card
3. Tesco Bank - Foundation Credit Card
4. Tesco Bank - Interest rates and fees for our Credit Cards

Sources last checked on date: 17-June-2024