About Tesco Bonus credit card...
- Rebate on your credit card interest charges
- 0% on Tesco purchases for 13 months
- Buy Now - Pay Later at Tesco Direct for up to 12 months
If you do most of your regular household shopping at Tesco, this is a great card to have in your wallet. But more than that, even if you don't use Tesco all that much, the Tesco Bonus credit card is the only card on the market to give you a proportion of your interest back every year direct to your card.
The standard interest rate on offer is rather average, however the real plus is the 13-month interest free period on purchases made at Tesco, plus a 13-month 0% interest balance transfer deal (2.5% fee). Used wisely, this is a great card for anyone who has an outstanding balance to transfer with the added option of interest free spending at Tesco during the same offer period.
Tesco give you your interest back
Whilst this card does not offer Clubcard points for shopping at Tesco (see the Tesco Clubcard credit card for that) it does offer something novel. Every year, Tesco will calculate how much interest you've paid over the last twelve months and refund one-twelfth of that amount to your card, cutting your bill.
In effect, this is a cash back deal for interest payments, and is useful for anyone who doesn't always clear their balance in full each month. However, this shouldn't be your main reason for opting for the Tesco Bonus credit card as the interest rebate really only reduces the standard rate to approximately 14.6% per annum, so you could save more by getting a cheaper standard rate credit card.
Apply for Tesco Bonus credit card 
| Interest Rates and Fees |
| |
|
Notes.. |
| Typical APR |
15.9% APR (variable) |
The typical APR is the rate most people are offered.
|
| Introductory Purchases |
0% for 3 months |
Payments will be applied to introductory rates first. |
| Balance Transfers |
0% for 13 months |
Payments will be applied to introductory rates first. |
| Balance Transfer Fee |
2.5% |
Balance transfers made within the first 11 months of account opening will be subject to a transfer fee. |
| Cash Withdrawal Rate |
24.942% p.a. (variable) |
This is the rate you are charged on balances resulting from using a cash machine, getting cash back at the supermarket or buying foreign money. |
| Cash Withdrawal Fee |
2%
(£2.5 minimum) |
When you use your credit card to get cash you will be charged a 'handling fee' for doing so. |
| Annual Fee |
£0 |
-
|
| Foreign Transaction Fee |
2.75% |
This is fee you will be charged for credit card transactions made abroad.
|
| Rewards |
| |
|
Notes.. |
| Interest Payment Back |
1/12th of the interest paid over a year paid back |
Tesco will calculate the interest you've paid on the Tesco Bonus credit card over the year and give you 1/12th of it back. |
| 0% on Tesco Purchases |
0% on Tesco purchases for 12 months |
- |
| Buy Now - Pay Later at Tesco Direct |
Selected purchases at Tesco Direct on 'Buy Now - Pay Later' for up to 18 months. |
- |
| Cardholder Services & Extras |
| |
|
Notes.. |
| Online Account Management |
Yes |
You can log in to a web site and manage your Tesco Bonus credit card account online. |
| Fraud Guarantee |
Yes |
Guaranteed protection against any fraudulent transactions carried out without your consent, including any Internet fraud. |
| Emergency Card Replacement |
Yes |
Emergency replacement if your card is lost or stolen abroad usually within 48 hours.
Cash advance can be provided too. |
| Other Extras |
Tesco Active Monitoring, Tesco Secure, Fraudsafe Helpline |
- |
| Payments & Payment Details |
| |
|
Notes.. |
| Credit Limit |
£250 minimum |
Credit limit may vary from person to person and is subject to status. |
| Interest Free Period |
Up to 56 days |
For purchases if you pay your balance in full and on time. This is the amount of time you have to clear your balance in full each month before you are charged any interest. There is no interest free period on cash withdrawals, cheques or money transfers or balance transfers outside of the introductory period. |
| Minimum Monthly Payment |
3%
(£5 minimum) |
The minimum monthly payment is the smallest amount you must pay each month (unless your credit card balance is zero). |
| Allocation of Payments |
Interest, Charges, Introductory Rate Balances, Balance Transfers, Purchases, Cash Advances, Money Transfers, Cheques, Tesco 'Buy Now - Pay Later' Balances |
When you make a payment to this card they will be applied in this order, with introductory rate balances being repaid first, then standard rate balances, then cash balances and lastly any Tesco 'Buy Now - Pay Later' balances. |
| Default Charges |
£12 |
This is how much you will be charged for late payments, returned payments and if you go over your credit limit. |
| Card Details |
| |
|
Notes.. |
| Online Application |
Yes |
You can apply online for the Tesco Bonus credit card. |
| Card Type |
Classic |
-
|
| Payment Company |
MasterCard |
This is the company who provides the payment technology and infrastructure to allow you to use this credit card. retailers and ATM machines displaying the 'MasterCard' logo will accept this card. |
| Card Issuer |
Tesco |
This is the bank behind your credit card. |
| Card Advertiser |
Tesco |
This is the company who advertises and promotes this credit card. |
|
Tesco Bonus Credit Card
| Typical APR |
 15.9% APR |
 |
| Intro Purchases |
| 0% for 3 months |
|
| Balance Transfers |
 0% for 13 months
2.5% transfer fee |
|
| Rewards |
Interest Rebate
Tesco Rate Offers |
|
| Interest Free Period |
| Up to 56 days |
|
| Annual Fee |
| £0 |
|
 |
| You should only apply if you are: |
| • Aged 18 or over |
| • UK resident |
More about Tesco Bonus credit card...
Interest free purchases
The Tesco Bonus credit card offers a 13-month 0% period on purchases at Tesco or Tesco Direct. This is one of the best 0% purchase deals on the market, albeit tied in to one retailer.
For other purchases, the card offers an initial 3 months interest free period.
In addition, Tesco are also offering a 0% balance transfer deal for 13 months. Again, this puts it towards the top of the market for balance transfer deals. There is a 2.5% transfer fee for moving any balance to the card during the first 11 months - but this is on the cheaper side of market averages.
One point to bear in mind is that as with any promotional rate offer you need to be aware of how you payments to the card will be applied. If you are going to move a balance over to the Tesco Bonus credit card it's best not to use the card for any non-Tesco purchases or cash withdrawals during the 0% balance transfer period.
The reason is simply that any non-Tesco purchases will begin attracting interest after 3 months - and any cash withdrawals will attract interest immediately. These interest applicable balances will then only be repaid once you've first paid off any cheaper (0%) balances on the card.
Tesco purchases are safe to make with a 0% balance transfer as the 0% periods last for the same duration of time.
When the interest free periods expire, the standard interest rate of 15.9% p.a. on purchases and any remaining balance transfers kicks in.
Buy Now, Pay Later
If you've got your eye on any items at Tesco Direct the Tesco Bonus credit card will offer you exclusive access to a 'Buy Now - Pay Later' scheme.
The BNPL scheme is only available on selected items and you will have to search through the products you want to find out which are available on the BNPL scheme.
If they are - you can enjoy up to 12 months to pay back the purchase/s. BNPL items are shown separately on your statement and they do not affect your minimum repayments or any payments made to promotional or standard rate balances on the card.
When the BNPL period finishes the balance will be rolled into your normal credit card balance and become subject to the standard interest rates. You can repay any BNPL purchases prior to this without penalty by phoning Tesco customer services.
Who should have this card
If you regularly shop at Tesco and don't always clear your balance in full each month then the Tesco Bonus credit card would make for a great payment option even for just the initial 13 month 0% period on Tesco purchases.
The Tesco Bonus credit card is also good if you're planning a large purchase from Tesco Direct. However, the skill here is to drop on the right product being offered when you are looking for it.
If you also have a balance to transfer from another card, then you'll also benefit here too, but keep in mind the balance transfer fee. There are few better balance transfer deals out there (and only for an extra 2 months), plus none that combine with 13 months 0% interest on purchases at Tesco.
After your balance transfer, don't forget you'll also get one-twelfth of your annual interest payments back at the end of each year. Though this will only work out to an interest charge reduction of approximately 1.3%.
Who shouldn't have this card
If you're after rewards and free goodies and keep your balance well under-check then you may be better suited to the Tesco Clubcard credit card.
Summary
The Tesco Bonus credit card is a good solid card with a decent standard rate and some great features that you will get the best out of if you regularly shop at Tesco. The great 'Buy Now - Pay Later' offer also means that you can 'park' a large purchase for some months without paying anything for it.
This card will be of most benefit to those people who regularly shop at Tesco and have an existing balance elsewhere to transfer. For at least the first 13 months, you won't find a cheaper way of combined debt-management and grocery shopping anywhere.
Apply for Tesco Bonus credit card
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Tesco Personal Finance
PO BOX 104010
George House
36 North Hanover Street
Glasgow G1 2YF
www.tescofinance.com
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