Earlier this month, Tesco Bank launched a new credit card that is suitable for people who have struggled to get a credit card from a mainstream lender because they have either never had or had very little previous credit finance. However, even if someone has a poor credit rating they can still potentially apply.
It is called the Tesco Bank Foundation Clubcard Credit Card.
Applicants must be at least 18 years of age a UK resident, have an income of at least £5,000 per annum, not have one of Tesco Bank’s other credit cards and not have applied for this card in the last 6 months. It is possible to apply online and a credit reference search is carried out as part of the assessment procedure so you could be declined if you do not meet their requirements.
The interest rate is quite attractive as it could be as low as 28.9% APR depending on your “credit score”.
The minimum limit is £250 with this being reviewable periodically by Tesco Bank.
The credit card account can be accessed online where it is possible to check the balance, view your statement and arrange to make one or more payments.
If you shop at Tesco and use this credit card to make purchases then you will earn Tesco Clubcard points.
You can be notified by text when your next monthly payment is due.
It is possible to set up a direct debit to make repayments.
If someone has a good credit rating then they may wish to consider applying for one of Tesco Bank’s other credit cards that charge lower rates of interest or apply for a credit card with another company that offers lower rates.
It is interesting to find that a major company such as Tesco Bank is entering this finance arena.