If you have had a history of bad credit, and your score has taken a nosedive, then you should consider getting a Tesco Bank Credit card. This is a card that is designed for people who want to build their credit and get control of their finances.
You will also be able to manage your borrowing when you use this card, plus, it comes with a whole lot of benefits of the user, that are outside the need to build credit. The company has also designed this card to have a very low APR, which is something you will clearly appreciate.
Now, we should mention that this card is a collaboration between Tesco and TransUnion, which means that they will help you access your TransUnion Credit Score, offer you credit alerts, and provide you with a credit review. Up next we’re going to tell you how to get this card.
This information is updated every 28 days, and the main purpose is to seriously help you with your credit report, and put you right where you want to be in terms of your finances.
Benefits of the Card
This card stands out, because it has a great relationship with Noodle. Noodle is a credit reporting service based in the UK. The relationship of the card and Noodle means you as a card holder gain access to Noodle Premium services for around 3 years.
You can view your credit score and financial history, and benefit from the improved services from Noodle. They will constantly keep you updated on all things that concern your credit report and offer you alerts when you need them.
A Very Low APR Compared to the Market
The APR that comes with the Tesco Credit card might be one of the lowest in the market. In a community where this ranges from 35% to 60%, Tesco’s is quite low at 27%. APR stands for the Annual Percentage Rate, and it is used to show you how much your borrowing is going to cost over time.
Credit Limit Increases
You will regularly receive credit limit increases. This is because the lender is very keen on ensuring that their customers are able to make good accounting decisions, and the card rewards you with this, if you are able to demonstrate that you can pay on time.
This therefore means that you can start off at around £250 and have it increased up to £1,500. In the future, you could even unlock more limits.
This card offers you Clubcard points when you use it for purchases. You are able to earn 1 point for every £4 you spend at Tesco, and 1 point for every £8 you spend away from Tesco. There are other opportunities to earn rewards, the reality is that if your credit limit is low, then, there are limited chances.
As a card holder, you will have 56 days of interest-free purchases when you pay your balances on time each year.
Fees and Charges
The card will bring the following charges.
- Representative APR – this is variable and at 27.5%.
- Interest rate on purchases – This is variable and charged at 27.5%
- Arrangement fee – no charges.
- Early repayment – zero charges.
- Late payment fee – Zero charges.
How to Apply
Essentially, you will be required to apply online, and they usually reach a decision about you within 10 minutes. The bank will require you to provide plenty of personal information such as your name, physical address, your income history over the last 3 years and other important details that pertain to your income and credit position.
In order to be eligible, you must also pass the following requirements.
- Must be over 18 years of age.
- Must be a UK resident or have a British Forces Postal address.
- Must be earning at least £5,000 per year
- Must already have an existing Tesco Credit card.
- Must not have applied for any Credit cards with Tesco Bank in the last one month.
- You must not have had any CCJs over the last 18 months.
- You must not have closed an account with Tesco in the last one year or missed a payment.
For more information, please log on to the Tesco Bank bank website.
Telephone number – 0845 300 4278
22 Haymarket Yards
Edinburgh EH12 5BH
When it comes to finding ways of rebuilding your credit, there are no shortcuts, and you must be able to follow the process. The Tesco Bank Credit card is called a credit builder, as it can help you achieve this. Research your different credit card options before committing to any single one and make sure the card fits your lifestyle.
Note: There are risks involved when applying for and using credit. Consult the bank’s terms and conditions page for more information.