Review of the week: Tesco Clubcard Credit Card

If you’re looking for an interest-free credit card, the Tesco Clubcard Credit Card has a 12-month 0% period on purchases. What’s more, you earn Clubcard points each time you spend.

Research carried out here at found that more than 50% of UK credit card users pick their credit cards based on rewards and incentives, whether it’s loyalty points, cashback, airmiles or some other perk.

So a card that rewards you with Tesco Clubcard points will be really attractive to regular Tesco shoppers but, even if you don’t do your weekly shop in Tesco, this card still stands out as one of the best on the market.

We look at it in more detail…

What’s the deal?

You benefit from a 12-month interest-free period on purchases with this card – this is the longest it's possible to get 0% purchase offer for (Sainsbury’s and Virgin also have cards with 12-month interest-free periods on purchases).

In addition to the purchase offer, balance transfers are also interest-free, albeit only for six months. If you move a balance over from another credit card, you’ll be charged a 2.9% transfer fee. 

Once the 0% offers end, you’ll be charged a typical annual percentage rate (APR) of 16.9% on purchases and 18% on balance transfers. However, because these are ‘typical’ rates it means you could be charged more. The typical rate must be offered to at least 66% of successful applicants but the other third could be offered a different rate. This will depend on your credit score, but could be up 21.9% on purchases and 24.9% on balance transfers.

If you’re a regular Tesco shopper then the card really comes into its own. You can use it as a Clubcard to register the points you earn as you shop, currently two points for every pound spent in store, one point for every pound spent on petrol and one point for every own bag you reuse.

However, you also earn Clubcard points for all other spending as well. For non-Tesco shopping you earn one point for every £4 you spend on the card.

You can use your points to get money off your Tesco shopping – 100 points is equivalent to £1. Points can also be exchanged for discounts on holidays, meals out and experience days. They can also be converted into Airmiles – a £2.50 voucher is worth 60 Airmiles.


Any catches?

If you use this card for both purchases and balance transfers then you need to be careful not to incur unexpected charges. If you still have a transferred balance on the card after the first six months then you’ll start paying interest on the amount but you’ll still have a further six months of interest-free purchases.

However, like most credit card companies, Tesco applies a negative payment hierarchy, meaning any repayments you make are set against the cheapest debt first – in this case, your purchases.

That means that, in order to repay the outstanding balance you’re being charged for, you’d need to clear the whole card. The simplest thing is just to use this card to spend on.


If you are looking for a credit card to spend on and want to take advantage of an initial 0% period this is a great deal as you won’t be charged any interest on your spending for the first year. For regular Tesco shoppers, this is probably the best 0% purchase card on the market.

Click here to apply for the Tesco Clubcard Credit Card.

However, there are two other cards offering interest-free periods on purchases which may be more attractive if you don’t shop at Tesco on a regular basis. These are the Sainsbury’s Credit Card and the Virgin 12/12 card.

What’s more, they also have 12-month interest-free periods on balance transfers too, making them a better option if you are looking for a card to transfer a balance over to as well as shop with.

Top tip

Once the interest-free introductory period is over, you may decide to continue using this card in order to collect extra Clubcard points.

For this to be worthwhile, you will need to repay your balance in full each month, otherwise the interest you will pay will far outstrip the benefits.

The easiest thing to do is set up a direct debit so that you pay off the full balance on time each month. You therefore ensure that you’ll never be charged interest or a late payment fee.

Please note: Any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.

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