Tesco Foundation Credit Card, Build Credit and Rack Up Tesco Clubcard Points with No Annual Fee

Overview of the Tesco Foundation Credit Card

The Tesco Foundation Credit Card is aimed at people in the UK who are building or repairing their credit history. It combines a straightforward credit-building proposition with the chance to earn Tesco Clubcard points on everyday spending, all with no annual fee.

Representative APR is typically higher than standard cards, reflecting its credit-builder nature, but if you pay in full each month you can still benefit from up to 56 days interest-free on purchases. Tesco Bank also provides CreditView so you can monitor progress.

Rewards and practical perks

One of the biggest draws is the Tesco Clubcard points earning: 5 points for every £4 spent in Tesco and 1 point for every £8 spent elsewhere. Those points convert into vouchers for Tesco or partners, stretching your everyday shopping further.

There is no annual fee, and the card supports mobile management via the Tesco Bank app. Monthly CreditView reports help you keep an eye on your credit file while collecting Clubcard points for routine spending.

How to apply and manage the card

Applying is straightforward via Tesco Bank’s online eligibility checker, which won’t leave a footprint on your credit file. If accepted you’ll receive a modest initial limit, typically between £250 and £1,500, depending on your profile.

To build credit effectively, aim to use the card for low-value everyday transactions and pay the balance in full each month. Set up direct debits and payment reminders in the app to avoid missed payments, which are crucial for improving your credit score.

Fees, pitfalls and smart usage tips

Be mindful of fees: the representative APR sits around 29.9% variable for purchases if you carry a balance, and cash withdrawals attract a much higher rate, commonly about 39.94%. Balance transfers and cash advances often carry a 3.99% fee.

Use the Tesco Foundation Credit Card primarily for purchases you can clear each month to take advantage of the interest-free period and to maximise Tesco Clubcard points. Avoid cash withdrawals and balance transfers to keep costs down and protect your credit-building progress.