5000 Clubcard points (targetted) on the £150 Tesco Premium Credit Card – worth it?

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 emailing some Clubcard customers to offer them 5,000 Clubcard points for signing up.

To be clear, this offer is targeted.  If you did not receive it, you cannot take part.  However, a few readers emailed us about it so I thought it was worth taking a look in case you are one of them.

As the annual fee is £150, you are paying £150 to receive 5,000 Clubcard points.  Exchanged at 3 x face value for one of the better Clubcard Boost deals, the points are worth £150.  You’d get £150 of Uber or hotels.com credit for example.

On this basis, your costs are covered for the first year and you would still get the benefits of the card.

However, just because the card is ‘free’ (if you assume 5000 points are worth £150) you should still work out the value TO YOU of 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.

Remember, though, that the free Tesco Bank debit card gives the same 1 point per £1 spent in Tesco.  You can get this benefit without spending £150 on a credit card.

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.


Receiving 5,000 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 5,000 Clubcard points as a sign-up bonus.  You’d need to be spending over £5,000 per year in Tesco and using the travel insurance to get value after Year 1.

The application page for the Tesco Premium Credit Card is here but remember that you will not get the 5,000 bonus points for signing up unless you were specifically emailed by Tesco Bank.

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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  1. Does the Tesco debit card earn the extra 1 point per £ spent in Tesco if you pay with it via the Tesco Pay+ app?

  2. Is the yearly fee refunded pro rata if you cancel mid year?

  3. You could always buy giftcards for others stores in Tesco, (My regulars are John Lewis/Waitrose, Restaurant Choice, Costa/Starbucks, M&S, Next etc) to help hit the £5000 spend target – so long as you don’t need Section 75 protection for whatever you are buying from the other store.

  4. Just spoke to Tesco to ask for clarification on the 5000 Clubcard points.
    Question : Do you get 5000 points for the successful application (plus £150) after the first transaction AND in addition another 5000 points when you have spent £5000 in one year in Tescos ?
    Tescos tried to be helpful but to be honest unsure of their information.

  5. I assumed my children (23 and 26) would be covered by the insurance but it would appear not, can I change my mind about having the card now I have received it?