Is the free Tesco Clubcard credit card, with 0% on purchases and balance transfers, worth a look?

The free Tesco Clubcard Mastercard is obviously worth a look if you want to boost your Clubcard points.

The earning rate is not hugely generous, at just 1 Clubcard point per £8 spent.  This is calculated on a ‘per transaction’ basis which means that an £8.00 transaction gets you 1 point and a £16.00 purchase gets you 2 points. A £15.99 transaction gets you just 1 point.  It has an impact on your earnings if you put through lots of small transactions but on larger transactions it is not a major issue.

Tesco Mastercard

1 point per £8 means you are getting 0.125p per £1 back if you redeem your Clubcard points in Tesco for face value.  Hopefully no Shopper Points readers do this!  If you are getting 3x the face value of your points via a good Boost deal, such as Uber or Hotels.com credit or restaurant vouchers, you will be turning that into 0.375p per £1 which is better.

You receive double this rate when shopping in Tesco where you earn 1 point for every £4 spent.  If Tesco makes up a large percentage of your monthly spending then it makes the credit card look more attractive.

(Remember that the ASDA credit card is reducing its cashback rate to 0.2% next month as we wrote about here.  If you have one of these you may want to switch to a Tesco Clubcard Mastercard.)

A good opening offer of 0% on purchases and 0% on balance transfers

There are various versions of the Tesco Clubcard credit card.  The one we are looking at today is this version (click) which offers 0% interest for up to 20 months on new purchases.

You also get a 0% balance transfer deal although this is very much secondary to the ‘0% on new purchases’ part of the offer.  You can transfer a balance from an existing credit card and pay 0% interest for the first three months.  The maximum transfer is 95% of your credit limit and there is a 2.9% fee.   You can also do a money transfer, straight into your bank account, on the same terms.

(For clarity – if you are specifically looking for a 0% balance transfer card then there are other cards on the market which offer longer 0% periods than this one.  3 months only gives you some breathing space for a short period.)

The representative APR on this card is 18.9% variable on new purchases.  There is no annual fee.

If you are interested in this offer, you need to apply via this page of the Tesco Bank website.

If you want to check your credit record before applying for a new card, click here for a free 30-day trial of Equifax’s online credit report service.  Note that a monthly fee of £14.95 will be charged if you do not cancel during the 30-day free trial period.

Want to earn more Clubcard or Nectar points? Click here to visit the Shopper Points home page for the latest news and offers. Come back every day for new deals or join our email list.

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.

Do you convert Clubcard points into Avios or Virgin Flying Club? If you do, visit our sister site, Head for Points, which is full of tips for maximising your frequent flyer miles.



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Comments

  1. Did they close the refer a friend deal with 1,000 club card points ?

  2. Will Squires says

    You would be mad to spend at Tesco using this card over the free Debit Card unless you need to 0% on purchases.

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