Tesco Bank opened in 1997, and in 2008 came entirely under the ownership of Tesco Plc. They offer a number of financial products, including loans, credit cards and savings products.
With a Tesco Bank loan, you could get on top of your finances, upgrade the family car or get started on some much-needed home improvements. Find out more about a Tesco loan in our handy guide below.
Tesco Bank offers fixed-rate, unsecured personal loans with the following features:
The interest rate is given as the APR (Annual Percentage Rate), however the advertised APR only has to be offered to 51% of applications. The rate you’re given may be lower or higher, depending on the loan you want to take out and your own personal financial circumstances.
Loans from Tesco Bank have a fixed interest rate, meaning the amount you pay back every month will stay the same. This can help with your budgeting, as you’ll know how much you have to pay each month.
A number of factors affect the rate of APR you will be offered – it will likely differ from the representative APR shown and will be based on your personal circumstances, the amount you want to borrow and the repayment term. Loans are subject to application, financial circumstances and borrowing history.
If you’re a Tesco Clubcard member then you’re eligible for preferential rates as an existing customer.
Applying for a loan, whether it’s with Tesco Bank or any other provider, will leave a mark on your credit report – and too many of these, successful or unsuccessful, is likely to make lenders hesitant. However, unsuccessful loan applications are the more damaging.
When you compare loans with MoneySuperMarket, we perform a soft search that won’t harm your credit score. We’ll also show you which loans you’re pre-approved for, so you know that if you apply, you’ll definitely be accepted – and you’ll definitely get the deal you see.
This way you’ll know where you stand, helping you apply with confidence and peace of mind.
If you apply online you could get an immediate decision and, if eligible, you’ll be able to digitally sign your loan agreement with Tesco. Once completed, the money will be sent to your bank account – usually on the same day. Applications over the phone take longer, and a decision could take up to ten days.
Once your online application has been approved and you’ve signed your agreement, the money will be paid straight into your bank account.
You have the right to cancel your loan agreement within the first 14 days of receiving your loan agreement letter. You don’t need to explain why you are cancelling and you will not need to pay an early settlement fee to cancel.
If you do not repay the loan within 30 days, you will be charged interest on the amount outstanding as detailed in your Credit Agreement.
You can pay back your Tesco Bank loan early, but you’ll be charged up to two months’ interest.
Tesco do not offer Clubcard points on loan repayments.
If you already have a Tesco Bank loan and you have made a certain number of monthly payments for your existing loan, you may be able to apply to borrow more.
Only one loan is allowed per customer, so if you do want to borrow more, your existing loan will be closed, and the new loan will pay off any existing balance and cover the additional amount you want to borrow. There is likely to be a minimum additional amount above your existing loan balance you’ll be able to borrow.
Be mindful that if you choose to cancel the new loan within the cooling-off period, you won’t be able to reinstate your old one. You will likely be charged up to 28 days interest to pay off your loan.
The main factor determining whether you’ll be accepted for a Tesco Bank loan is your credit history. You can check this for free with MoneySuperMarket’s credit monitor tool and it won’t affect your credit score.
Tesco Bank loans have the following eligibility criteria:
You can apply for a Tesco Bank loan online, over the phone, or through a postal form. Before you apply you should make sure you have the following details available:
You can find a better loan deal when you compare your options on MoneySuperMarket. Just tell us a bit about the loan you’re applying for, including what it’s for and how much you need, and you’ll be able to see a list of quotes tailored for your needs.
You can compare deals by their APR, any fees or charges, and the likelihood of you being accepted if you apply. As soon as you’ve found the loan you want, simply click through to the provider’s website to finalise your application.