Tesco Foundation Credit Card: Boost Your Credit Score, Stack Tesco Clubcard Points and Pay No Annual Fee

Overview of the Tesco Foundation Credit Card

The Tesco Foundation Credit Card is a practical credit builder aimed at people in the UK who need to build or rebuild their credit history. With no annual fee and a straightforward rewards structure, it’s a sensible everyday card for those starting out or repairing their credit profile.

Designed by Tesco Bank, the card combines credit-building features with Tesco Clubcard points on spending, a free monthly CreditView report and up to 56 days interest-free on purchases when you clear your balance each month.

Rewards and everyday perks

One of the biggest draws of the Tesco Foundation Credit Card is the Clubcard earnings: 5 points for every £4 spent in Tesco and 1 point for every £8 spent elsewhere. Those points can be boosted via Tesco Clubcard vouchers and partner offers, helping you stretch your weekly shop.

There’s no annual fee, and the mobile banking app makes it easy to track transactions, set up payment reminders and check your Tesco Bank CreditView. Use the card for regular supermarket bills and utility payments to both build credit and collect Clubcard points.

Costs, APR and important limits

Be aware of the representative APR — 29.9% variable — which is typical for credit-builder cards in the UK. The card gives up to 56 days interest-free on purchases if you pay in full each month; failing to do so will incur interest at the standard rate.

Cash withdrawals and money transfers carry a higher cost: a 39.94% APR and a 3.99% fee for balance transfers or cash advances. Initial credit limits normally sit between £250 and £1,500, so plan usage accordingly and avoid using the card for cash.

How to apply and smart usage tips

Use Tesco Bank’s online eligibility checker first — it won’t affect your credit score — and then apply online if you’re likely to be accepted. Keep documents handy: proof of identity, address and income will speed up the process.

To get the most from the Tesco Foundation Credit Card, aim to use under 30% of your available limit, set up a Direct Debit to clear at least the minimum each month and, ideally, pay the balance in full to keep interest at bay. Monitor CreditView regularly and apply for a limit increase only after several months of responsible use.