In this article we look at the Tesco Foundation credit card, which is a credit builder card for those with no or poor credit history.
You are likely to be accepted for it if you haven't had a CCJ in the past 18 months and haven't had an account closed in the past year due to missed payments, as well as meeting the other eligibility criteria.
Key facts about the Tesco Foundation credit card
- Best for: Those looking to improve their credit rating while also enjoying rewards on their spending.
-
Introductory offer: No introductory offers.
-
Representative APR: 29.9% variable.
-
Fees: No annual fee.
-
Perks: Collect 5 Tesco Clubcard points for every £4 spent at Tesco and 1 point for every £8 spent elsewhere. Receive a free monthly credit report through Tesco Bank CreditView.
Pros of the Tesco Foundation credit card
- It is one of only a few credit-builder credit cards that also offers benefits, in this case the ability to earn Tesco Clubcard points on almost all of your day-to-day spending.
- If accepted, you will be offered a credit limit of between £250 and £1,500
- The account is set up to help you manage it effectively, with payment reminders and a well-structured mobile app.
- It offers 56 days interest free on purchases if you pay off the balance in full each month.
Cons of the Tesco Foundation credit card
- There is a hefty 39.94% APR on cash withdrawals, cash transactions and money transfers.
- 3.99% balance transfer, money transfer or cash advance fee
How to manage your payments on the Tesco Foundation credit card
Cardholders can manage their account through the Tesco Bank mobile banking app.
How to apply for the Tesco Foundation credit card
Use the online eligibility checker to see if you are likely to be accepted.
