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.
How to find out which credit card is best for you
You can use Money to the Masses partner Creditec* to quickly build a list of the credit cards that match up with your needs. By simply adding in a few basic details, you will get a tailored collection of the best credit cards for you. You can use your Creditec results to check how likely you are to be accepted for a certain card, which cards available to you offer the best rewards or find out what option will leave you with the lowest fees to pay. Creditec is able to check your eligibility without running a full credit check, which means your credit score will not be affected. Click this link to start your comparison*.
Alternatives to the Tesco Foundation credit card
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