2500 Clubcard points on the £150 Tesco Premium Credit Card – worth it?

(EDIT, January 2016:  this article is now out of date as the sign-up bonus of 2,500 Clubcard points has ended)

We don’t really discuss credit cards on Shopper Points and leave this to our sister site Head for Points.  However every now and then is an offer on loyalty credit cards with generous sign up bonuses of Clubcard or Nectar points and it’s worth taking a look at those offers.

Back in June Tesco launched their Tesco Premium Credit Card.

The representative APR is 56.5% variable, including the fee, assuming a £1200 credit limit.

As you were looking at a £150 annual fee for a list of benefits which was not overwhelming, we were not very excited by it.

Tesco Premium credit card

Until now. Currently Tesco Bank is offering 2,500 Clubcard points for signing up (you need to make one purchase).

As the annual fee is £150, you are paying £150 to receive 2,500 Clubcard points.  Even exchanged at 3 x face value for one of the better Clubcard Boost deals, however, the points aren’t worth more than £75.  

This means you need to take a look at the other card benefits to see if there is any point in getting one:

You get 1 Clubcard point for every £1 you spend on the card in Tesco or at Tesco Direct

This is in addition to your regular Clubcard points. In comparison the free Tesco Clubcard credit card gives you only 1 point for every £4 you spend in Tesco.  If you spent a lot of money in Tesco, the value of these extra points would add up.

You get a 5,000 point bonus if you spend £5,000 with Tesco during your card year

This sounds like a lot of money to spend in a supermarket. However if you’ve got a large family and/or are a driver and buy your fuel at Tesco petrol stations, you can hit the target.

Adding in the base earning rate of 1 point per £1 spent in Tesco, you would earn 8,750 more Clubcard points per year using the Premium credit card instead of the free Tesco credit card if you spent £5,000 in Tesco.

You get comprehensive travel insurance for you and your family

The premium credit card comes with a travel insurance covering immediate family. If you are currently paying for travel insurance then this would have some value, although you should check the small print carefully regarding things like winter sports, maximum length of trip and pre-existing conditions.

 

1% enhanced exchange rate when you buy travel money in a Tesco store using your card

There are better credit cards out there with 0% foreign exchange fees when spending abroad.  I’m not sure you need to travel with a huge amount of foreign currency in your suitcase these days.

1 Clubcard point for every £4 you spend on the card outside Tesco

This is quite good but remember that Tesco rounds down every transaction to the nearest £4.  A £7.99 transaction only earns 1 point and a £3.99 transaction earns nothing.

Conclusion

Receiving 2,500 Clubcard points definitely makes this offer more attractive. However not everyone will get the most out of this offer.

If you know that you will definitely spend £5,000 per year in Tesco, this can be a decent deal even after paying the annual fee

If you need travel insurance, this will add to the benefits of this credit card

Even then, I’m not sure if the card is worth keeping for more than a year.  From the second year, you will still be paying the £150 annual fee but you won’t be getting another 2,500 Clubcard points as a sign-up bonus.

The application page for the Tesco Premium Credit Card is here.

Disclaimer: Head for Points and Shopper Points are journalistic websites. Nothing here should be construed as financial advice, and it is your own responsibility to ensure that any product is right for your circumstances. Recommendations are based primarily on the ability to earn miles and points and do not consider interest rates, service levels or any impact on your credit history. By recommending credit cards on this site, I am – technically – acting as a credit broker. Robert Burgess, trading as Head for Points, is regulated and authorised by the Financial Conduct Authority to ac

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Do you earn Clubcard or Nectar points from your credit card?.  If not, you're missing out. We review the best options in this article.

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Comments

  1. What about referral bonus and/or cashback for the free tesco card?

  2. Just received today, an offer from Tesco to switch my old current account to Tesco Bank between 1st October and 30th November 2016, using the Current Account Switch Service, and they’ll give me 2,500 bonus Clubcard points. I opened a current account with Tesco 4 months ago to get the 3% interest on £3000, but didn’t transfer my existing current account.

    • Yes its a good deal just transfer an account not in use as there doesn’t seem to be a requirement of a certain amount of direct debits or alike

  3. Silly deal full of gimmicks – Tesco lost the plot – stay away.

  4. If the spend was more like £3000 in Tesco then perhaps it would be more achievable but now they have cut off the gift card promotion I can’t see myself spending anything close to 5k on in there