In today’s fast-paced world, credit cards offer more than just a line of credit—they provide benefits and rewards that enhance everyday shopping and traveling experiences. One card that stands out in the UK market is the Tesco Clubcard Plus Credit Card. Packed with appealing features, it combines Tesco’s loyalty program with excellent financial perks, making it a strong choice for those who regularly shop at Tesco and beyond.
This article explores the ins and outs of the Tesco Clubcard Plus Credit Card. From its annual fees and credit limits to its remarkable advantages and disadvantages, we’ll cover everything you need to know to decide if this card fits your financial needs.
Key information about the credit card
How does the annual fee work?
The Tesco Clubcard Plus Credit Card does come with an associated fee, though it’s worth noting that it is tied to your existing Clubcard Plus subscription. Tesco Clubcard Plus subscribers pay £7.99 per month for the subscription, and this is integrated into the card’s Annual Percentage Rate (APR) calculation.
How is the credit limit determined?
The credit limit on the Tesco Clubcard Plus Credit Card is determined based on individual circumstances. Tesco evaluates factors such as your income, credit history, and overall financial health to establish a suitable credit limit. For those who meet the basic criteria—such as a minimum income of £5,000 per year and a strong credit history—the card could offer a starting credit limit of £1,200.
Advantages of the credit Card
- 0% interest on purchases: One of the standout perks of this card is the 0% interest period on purchases for up to 24 months. Depending on your financial circumstances, you may be offered 16 or 20 months instead, but it remains a useful feature for managing larger expenses.
- No foreign exchange fees: For frequent travelers, the lack of foreign exchange fees is a considerable advantage. You can use this card abroad without worrying about the typical 2.75% surcharge on international transactions.
- Earn Tesco Clubcard Points Everywhere: Not only will you earn points at Tesco, but you can also accumulate Clubcard points on nearly all purchases, making it easy to build up rewards quickly. These points can be redeemed for discounts on future Tesco purchases or special offers.
- Balance transfer option: You can transfer balances from other credit cards, up to 95% of your available credit limit, which can help consolidate debt and reduce interest payments.
- Tesco Clubcard integration: The card is designed to maximize Tesco Clubcard benefits, so your loyalty points accrue faster, making it perfect for regular Tesco shoppers.
Standout advantage
Perhaps the most notable advantage of the Tesco Clubcard Plus Credit Card is the 0% interest on purchases for up to 24 months. This extended period can significantly alleviate the burden of large purchases, allowing you to spread payments over time without incurring any interest charges. This feature is particularly appealing for those planning to make major purchases or simply looking for financial flexibility.
Disadvantages
- High APR: The representative APR of 37.7% is relatively high compared to other credit cards. This includes the £7.99 monthly subscription fee, which could make the card expensive if you don’t take full advantage of the interest-free periods.
- Subscription dependency: To benefit from the credit card, you must maintain a Tesco Clubcard Plus subscription. Cancelling the subscription will result in foreign transaction fees, which can add up if you frequently travel or shop internationally.
- Limited balance transfer window: The card requires that any balance transfers be activated within 60 days of opening the account. After that, you won’t be able to transfer a balance.
A standout disadvantage
One of the most significant drawbacks of the Tesco Clubcard Plus Credit Card is its dependency on the Clubcard Plus subscription. While the subscription offers valuable perks, such as additional Clubcard points and no foreign exchange fees, you are locked into this monthly payment to maintain these benefits.
Who can apply for this card?
The eligibility criteria for the Tesco Clubcard Plus Credit Card are quite straightforward. To qualify, you must be a UK resident or hold a British Forces Post Office address. Applicants must be at least 18 years old and have an annual income of £5,000 or more. Additionally, a good credit history is essential, meaning those with a poor credit score or previous financial difficulties may not be approved for this card.
You’ll also need to confirm that you have no more than one Tesco Bank Credit Card and that you haven’t applied for a Tesco Bank Credit Card in the last 30 days. These requirements are designed to ensure that applicants are in a stable financial position before being granted credit.
How to apply for the Tesco Clubcard Plus Credit Card
For the website
The first option for applying is through the Tesco Bank website. To start, make sure you’re logged into your Clubcard Plus account, as you need to be a subscriber to be eligible. From there, you’ll be asked to provide personal details, including your home address, income information, and bank account details.
Tesco Bank will also ask for information regarding any other credit cards you may want to transfer balances from. Once you’ve filled out the necessary information, you can submit your application. Tesco typically provides a decision quickly, either instantly or within a few working days, depending on your circumstances.
Through the app
Another convenient way to apply is through the Tesco Bank app. Much like the website process, the app will guide you through providing the required information, such as your address, income details, and existing credit card balances.
The advantage of using the app is that you can manage your application from anywhere, tracking its status and receiving updates in real-time. Additionally, the app allows you to activate your card and manage your Tesco Clubcard points more effectively once your card is approved.
At the branch
Though less common, you can apply for the Tesco Clubcard Plus Credit Card in-store at select Tesco branches. The in-store application process typically involves speaking with a Tesco representative, who will help you through the steps and gather your necessary information.
