Tesco Credit Cards (Foundation) | www.tescobank.com
A range of Tesco Bank credit cards are available through www.tescobank.com, but today we’ll mainly be focusing on their Foundation card. This is designed for those looking to rebuild their credit rating. This is a subprime offering, but they are relatively picky with who they take on that we’ll come back to. We have profiled the banking division of this leading retailer when we looked into their personal loans. Their loan was more popular than the options from any other banks. In retailing, they remain the market leading supermarket chain with a market share of 28%. The banking division has attracted 7.6 million customer accounts that is much greater than their main rival Sainsbury’s (1.7m).
The Tesco Foundation credit card was launched back in May 2014. This critically carries the cheapest subprime rate on the market at 27.5% APR (27.54%). In the summary box it states that depending on your circumstances you could pay up to 39.9% (39.94%). There has actually been an improvement on the current rate, since on a previous check this was 28.9%. They have also recently released new prime release called Premium. Foundation’s specs are stripped down, but newcomers do see 0% on purchases and transfers for the opening month. For spending they start off at £250 with there being no upper limit. The assumed limit in their example is £1200 and so most people should see reasonable funds loaded on.
It’ll take around 10 minutes to fill in the application form at www.tescobank.com with a quick decision then coming in 60 seconds. Those accepted are sent their cards within a few weeks. Radial and Strawberry are the 2 designs that can be chosen between. A login is provided and they have also released a mobile app to keep track that way. Text alerts can be set and regular shoppers can benefit from collecting Clubcard points. Customer support lines are impressively live 24/7. You can even reach them on Christmas Day should you wish to. This is a great offering in the subprime space, but you are much likely to be accepted with another specialised lender.
They state that you are more likely to be accepted if you haven’t received a CCJ in the past 18 months and haven’t had an account closed in the past year due to missed repayments. Other than this they only require customers to have an income of £5000+ per year. To give you a taster of their prime offerings (all MasterCards), they have many competitive 0% periods. Balance Transfer gets you 0% for 40 months on transfers (the fee is 2.69%) plus 3 months on purchases. There is also 40 months on money transfers at 3.94%. They do headline a Money Transfer card, but this is matched to BT and so they are the same.
Purchases has a 21 month period also with 3 months on transfers (2.9%). No Balance Transfer Fee is self explanatory with 21 a month period plus a single month for purchases. On the options noted the standard interest rate is 18.9%. Another choice is Low APR that will always be just 7.8% and purchases/transfers each see a 3 month period (0% fee). Finally, the newcomer of the pack is Premium. Standard on this is 19.9% that rises to 56.5% due to the annual charge of £150. A single month is provided on purchases/transfers. You can collect 5000 bonus Clubcard points worth up to £200 when spending around £100 a week. Points earn more and travel insurance is another bonus.