Credit Cards

A credit card lets you spend money up front, with the agreement that you’ll pay it back later along with some interest. How much money you can spend depends on the limit set by the provider and the type of card you have.

Credit cards let you borrow money, on the basis that you pay off any interest, called the Annual Percentage Rate (APR). Things like your credit history can have a big effect on how much interest you’re expected to pay.

While you don’t have to pay back the balance in full every month, you will be expected to make a minimum payment, which will be set by your provider based on things like how much money you’ve borrowed.

Choosing the best credit card for you means looking at what you want it for most. Different types of cards offer different features.

Do you want to pay off debts?
A balance transfer card can be used as a way to consolidate debts and simplify paying them back.

Do you want to improve your low credit score?
Credit building credit cards, also called foundation cards, let you borrow smaller amounts of money whilst helping you build a credit score.

Do you want to buy something expensive?
If you have a one off or big purchase in mind, a 0% purchase card could give you an interest free period to help you spread the cost.

Do you want to get rewarded for your purchases?
Some credit cards offer rewards on your spending. These are typically suited to people who will use their card often and pay off the balance in full each month.

Do you want a card to go travelling with?
There are some credit cards that are specially designed to reward travellers.

Browse our full range of credit cards

The main types of credit cards are:

Purchase credit cards
These are a way to spread the cost of a big purchase, whether it’s new furniture or a dream holiday. You will be expected to pay back at least a minimum amount each month until your balance is paid off. It may have an interest free period at the start, letting you spread the cost of your expensive purchases.

Find out more about our purchase credit cards

Balance transfer credit cards
There are some credit cards that let you transfer your balance from other cards and pay no interest on your balance for a set amount of time. This can be useful for consolidating debts. There may be a one off balance transfer fee to offset the interest free period.

Find out more about our balance transfer credit cards

All round credit cards
Some credit cards are designed for more than one purpose – they let you make balance transfers, spend money and also transfer money. They may charge different fees for the different ways you plan to use them. For example, you may have to a pay a balance transfer fee as well as a money transfer one.

Find out more about our all round credit cards

Foundation or credit building credit cards
Credit builder or foundation credit cards are an option for people who are looking to improve their low credit score or lack of credit history. Credit limits usually start low on this type of credit card, but can grow over time as you make your payments and your credit score improves.

Find out more about our foundation credit cards

Rewards credit cards
Reward cards could be a good option for people who are planning to use their cards for everyday spending. They let you earn points through a reward scheme, and you can then use the points for a variety of goods or services.

Cashback credit cards
Letting you earn an amount of cashback on the money you spend, cashback credit cards could be useful for people who want to use their cards for everyday spending. It's important to factor in any interest charges as these will offset any cashback earned.

Travel credit cards
There are some credit cards that are aimed at people who travel often. They tend to let you make purchases overseas without having to pay foreign transaction fees, like some standard credit cards do. They also help you make sure you’re able to take advantage of better exchange rates.

Credit cards can be useful for spreading the cost of big purchases, consolidating debts or building up your credit score. They can also offer extra benefits, like rewards or cashback.

That said, it's important to only spend on a credit card if you will be able to afford the repayments. If you don’t pay off your full balance each month, you will be charged interest on what you owe (once any interest free periods have ended).

If you're not able to keep to a payment schedule, your credit score could be lowered rather than improved. It’s also important to choose the right credit card for your needs – the benefits need to match up to how you plan to use your card. It can also be bad for your credit score to apply for a card and be turned down.

You can find out how likely you are to be approved for a credit card without affecting your score by using our credit card eligibility checker.

APR is short for Annual Percentage Rate. It tells you the cost of borrowing, as a percentage of the amount you owe, over a year.

You can use the APR to work out how much a credit card, loan or mortgage, or other forms of credit will cost. The APR includes the interest rate charged, along with any fees.

Most credit cards have a variable APR, and all it means is that the Annual Percentage Rate for a credit card may change over time. If the APR on your card is going to change, you’ll be notified in advance.

After applying, your application will either be accepted, referred, or declined. If you meet all the requirements, you’ll be accepted and, after accepting the terms and conditions, will receive your credit card within a few weeks.

If your application is referred, you’ll be placed into a referral queue, and we’ll usually get in touch with you to ask for more information. We’ll also let you know if your application is declined. Read more on these credit application outcomes in greater detail.

You’ll receive your card 5-7 days after your application is accepted, along with your terms and conditions, a copy of your credit agreement and your welcome booklet.

There are several ways for you to pay your credit card bill:

Most of our charges and fees relate to when you move money between accounts, withdraw cash, or pay for things abroad. You may also be charged if you go over your credit limit or miss a payment. You can check your interest rate on your monthly statements.

To see the complete list, read our page on charges, fees, and interest.

Under Section 75 of the Consumer Credit Act you could get extra protection if something goes wrong on single purchases that cost between £100 and £30,000. So if something you've paid for turns up broken or faulty, or if it doesn't arrive at all, you may be able to get your money back through a Section 75 claim.

Read more about your consumer rights on our page on the top credit card features.

Yes, you can manage your credit card with Online Banking or on our Mobile Banking App.

Yes, your Tesco Bank Credit Card will work overseas.

With each transaction in a foreign currency you’ll be charged a foreign exchange fee of 2.75% of the cost of your purchase.

Get more information in our guide to using your credit and debit cards abroad.

Tesco Bank CreditView is a free, exclusive service to help our Foundation Credit Card customers to stay fully up to speed with changes in their credit rating and financial history, provided by TransUnion.

For three years from account opening Foundation Credit Card customers who register with Tesco Bank CreditView will have:

As part of the sign-up process you will be required to pass TransUnion's identity validation checks before accessing your Tesco Bank CreditView account.

It's worth knowing that only the primary credit card holder will have access to Tesco Bank CreditView.

A Tesco Bank Credit Card is also a Clubcard, so when you spend on it in Tesco you’ll collect your normal Clubcard points (1 point for every £1 spent) plus an extra 1 point for every £4 you spend.

When you buy Tesco fuel (excluding Esso) you’ll collect your normal Clubcard points at an enhanced rate of 1 point for every £1 spent (usually 1 point for every £2 spent with a Clubcard alone) and you’ll get 1 extra point for every £4 spent.

When you spend outside Tesco you’ll collect 1 point for every £8 you spend.

Points are calculated on single transactions and you must have available credit. Points collection rates are subject to change. Remember there are some things you won’t collect points on.

The Tesco Clubcard Scheme is administered by Tesco Stores Limited, Tesco House, Shire Park, Kestrel Way, Welwyn Garden City, AL7 1GA who are responsible for fulfilling Clubcard points.

You can only collect points on purchases, so cash withdrawals, cash transactions, balance or money transfers, gambling transactions, buying travel money and regular payments like standing orders and Direct Debits don’t count.

There are also some products at Tesco you can’t collect points on, see the Clubcard website for details.

Every 3 months your Clubcard points are turned into Clubcard vouchers. Or you can choose to get them quicker with Faster Vouchers.

Your vouchers can be used to spend at Tesco, in store or on fuel (excluding Esso), or they can be exchanged to get up to 3x the value of your vouchers with Tesco Reward Partners.

The calculator works out how many Clubcard points you could collect if you had a Tesco Bank Credit Card and used it to pay for items in and out of Tesco.

Based on the amounts you enter into the calculator, we work out the number of Clubcard points you could collect and give an idea of the amount in Clubcard vouchers.

Remember though, your points will be worked out on each individual transaction that you make and not on your total monthly spend. So, this means the calculator only gives an indication and the actual points you receive could vary.

Don't forget that you'll need to spend a minimum amount to begin collecting Clubcard points.

When you open a credit card account with us you’ll be automatically enrolled into the Clubcard scheme if you’re not already a member, and Tesco Bank will share information with Tesco Stores for the operation of your Clubcard account.

Clubcard accounts are managed separately by Tesco Stores, and you should visit the Tesco Stores privacy notice for further information about how Tesco Stores uses your information.

We make a few assumptions when we're doing our sums: