Tesco Bank to help customers build their credit rating with the new Foundation Clubcard Credit Card
7 May 2014
Tesco Bank has today launched the Foundation Clubcard Credit Card, which is designed to help customers who are trying to build their credit rating.
With a market leading rate of 28.9% APR representative (variable)*, Tesco Bank’s Foundation Clubcard Credit Card gives customers the additional benefit of receiving Clubcard points** on their spending. The card also doubles up as a Tesco Clubcard in Tesco stores which means that customers only need to carry one card to benefit from Clubcard instead of two.
David McCreadie, Managing Director, Banking at Tesco Bank commented,
"We understand that some customers can find it difficult to access credit if they have a limited credit history. The Foundation credit card can help these customers build their credit rating which may help them access lower APR products in the future."
For customers who are less familiar with credit Tesco Bank is providing straightforward information to help them manage their account and build their credit rating. Customers who manage their account responsibly may, in the future, be able to access lower APR products.
Tesco Bank is also helping customers avoid any additional charges, by offering text message alerts to remind them to make a payment. Customers can also receive a text message to alert them when they are close to reaching their credit limit.
Andrew Hagger of Moneycomms.co.uk commented,
"It's good to see a high profile lender offering an affordable finance option to consumers who are currently excluded from mainstream credit. By encouraging cardholders to set up a monthly direct debit and to sign up for text reminders Tesco Bank is giving customers an excellent opportunity to gradually improve their credit rating."
The Money Advice Service - an independent organisation which gives free, impartial advice - offers the following tips to help people understand how credit ratings work, and improve their rating if necessary:
- Check your credit record – before you put in any big applications - e.g. mortgages, loans – check your credit record to help minimise the chance of rejection and put you in the best position to improve your rating. Check your credit history with any of the main credit agencies: CreditExpert, Equifax, Callcredit. You have the legal right to see a copy of your credit report for £2. Do check for free trials too
- Challenge mistakes – errors on your credit profile will affect your ability to borrow and if you don’t get them corrected you may find it harder to get credit. If you’ve signed up to a free trial, speak to the credit agency to discuss your report and get its help correcting any errors.
- Improve your credit rating – if your credit rating isn't in the best shape there are some easy things you can do to boost your credit rating. Making sure you’re on the electoral register will help boost your score- visit aboutmyvote.co.uk to get yourself on it today.
- Pay your bills on time - Having a good history of paying your bills on time is one of the best ways to improve your rating. Manage your bills efficiently using Direct Debit and speak to your lender about other tools it might offer such as text message reminders.
For more information and media enquiries please contact:
Tesco Bank press office
+44 (0) 131 274 3630
Notes to Editors:
* Representative example: 28.9%APR representative (variable) based on a credit limit of £1,200. Purchase rate 28.9% pa (variable)
Your credit limit may vary depending on your circumstances. Tesco Bank, PO Box 27028, Glasgow, G2 9FT. The Tesco Bank Foundation Clubcard Credit Card is available to over 18s nd UK residents only. Subject to status.
**One Clubcard point is awarded per £4 spent in each purchase transaction (£4 minimum). Customers must have available credit. Clubcard points not received on balance transfers. Points exclusions apply to certain products in Tesco stores – see tesco.com/clubcard/terms for details.
Credit limits will be determined as part of the assessment criteria.
Tesco Bank’s goal is to make banking and insurance easier and better value for people who shop at Tesco. We’ve been around since 1997 and today we help more than 5 million customers manage their money every day. Our 4,000 colleagues serve our customers seven days a week from our three main centres in Edinburgh, Glasgow and Newcastle, and we are also available through online and mobile banking 24/7. Tesco Bank participates in the Chartered Banker Professional Standards Board.
Tesco Bank is a trading name of Tesco Personal Finance plc. Registered in Scotland No. SC173199. Registered Office: 2 South Gyle Crescent, Edinburgh, EH12 9FQ