Get 5000 Clubcard points for getting the £150 Tesco Premium Credit Card – worth it?

We don’t really discuss credit cards on Shopper Points and leave this to our sister travel loyalty 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 we like to take a look.

Back in June 2016 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 its biggest ever sign-up bonus – 5,000 Clubcard points!

The offer is available until 11th July.

There is NO spending target to hit to receive the bonus.  All you need to do is use the card to make one purchase at Tesco, either in-store or online, within two months of receiving it.

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 credit for example.  You would get £200 of value if you redeemed for a 4x deal.

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.  That is made up of the 5,000 bonus Clubcard points and the extra 3,750 points earned for spending £5,000 in-store.

You get comprehensive travel insurance for you and your family

The premium credit card comes with a travel insurance covering your 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 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.  However, a lot of other rewards cards have cut their rates recently – the ASDA Money credit card drops to 0.2% today from its previous 0.5% – which makes the Tesco Premium rate better by comparison.


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

If you spend money on Uber and would definitely get £150 of value from the sign-up bonus, you might as well apply.  The card is basically free to you and you are getting free travel insurance and a decent earning rate on your spending.

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.  You will receive 5,000 bonus Clubcard points if you apply before 11th July.

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.

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.

About Shopper Points

Shopper Points helps you earn more Tesco Clubcard and Nectar points! Visit every day to see our latest articles, follow us on Twitter and Facebook, or sign up for our FREE emails via this page or the box to your right.


  1. Thanks for this.

    I presume you cannot cancel the card in a similar way to AMEX and receive a pro rata refund of annual fee?

  2. Beware also – the third party redemption values of Clubcard points is being “harmonised” at 3x in June. Some partners have dropped out over the last few months and there may be more.

  3. For those using clubcard for Avios this is a great offer from Tesco if you shop there!

    You get 5K TCCP at sign up + 8750 TCCP after 5K spend total of 13,750

    at 600 rate that’s 33K Avios approx £575 if you buy
    at 800 rate that’s 44K Avios approx £735 if you buy

    The 800 rate is for the early adopters of World MasterCard.

    • Genghis says:

      I’d argue only a decent deal if you spend £5k in Tesco. I also wouldn’t use BA’s sale price of avios as your valuation, but each to their own. Not converted Tesco cc points to avios for ages (since the last 20% bonus which IIRC was late 2015. I’m getting much better value from Uber and used for an Intrepid tour earlier this year (both genuine 3x IMO).

  4. Jamainky says:

    Hi – Does the purchase of foreign currency in Tesco count towards the £5k in-Tesco spend requirement for the extra 5k TCCP? If yes, this makes the offer incredibly attractive IMO…

Add your comment here: