Looking for a way to rebuild your credit while earning rewards on everyday spending?
The Tesco Foundation Credit Card is perfect for individuals with poor or limited credit history!
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The Tesco Foundation Credit Card stands out If you’re seeking a credit card that helps you improve your credit score responsibly and offers perks like Clubcard points on your purchases.
Benefits of the Tesco Foundation Credit Card:
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Advantages and Disadvantages of the Tesco Foundation Credit Card
When considering the Tesco Foundation Credit Card, here are the main pros and cons.
Pros
- Low Initial Credit Limit: Limits from £250 to £1,500 help prevent overspending and keep you within your means.
- Lower APR: A 29.9% APR is lower than many other credit builder cards, making it less expensive to carry small balances.
- No Annual Fee: This card remains affordable, especially for those working to rebuild their credit , because there is no annual fee.
- Clubcard Rewards: Earn points on everyday purchases, which you can redeem at Tesco and partner stores.
Cons
- High Interest on Carried Balances: Like most credit builder cards, the 29.9% APR can still result in high interest if you don’t pay your full balance each month.
- Low Credit Limit: While helpful for controlling spending, the initial low limit may feel restrictive for users looking to make larger purchases.
- Foreign Transaction Fees: A 2.75% foreign transaction fee makes this card less ideal for frequent international travellers.
This card is designed for those with limited or poor credit history, so even if your score is low, you may still qualify. However, Tesco will perform a credit check to assess eligibility.
You earn five points for every £4 spent at Tesco and one point for every £8 spent elsewhere. These points can be redeemed for discounts at Tesco and its partners.
Applications can be made online through the Tesco Bank website. Be sure to use the eligibility checker before applying to avoid impacting your credit score.
Final Thoughts
The Tesco Foundation Credit Card is a great choice for UK residents looking to rebuild their credit while earning rewards on everyday spending.
Its low APR for a credit-builder card, Clubcard points, and no annual fee make it an affordable and practical option.
However, if you're a frequent traveller or carry balances often, other cards might be more suitable due to the foreign transaction fees and interest rates on carried balances.
For those committed to improving their credit responsibly, this card offers the tools to do so, along with the bonus of rewarding their spending.
Looking for a similar option?
Check out the Aqua Classic Credit Card, which offers similar credit-building features without foreign transaction fees and is perfect for frequent travellers.
Learn more in our detailed review of the Tesco Foundation Credit Card!
Aqua Classic Credit Card review: Build credit!
Explore the pros and cons of the Aqua Classic Credit Card in our comprehensive review. From its 60-second application process to its unique features!
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