For the first time in 18 months, Tesco Bank is offering a sign-up bonus on the Tesco Clubcard Mastercard.
This deal is not being advertised on the Tesco Bank website but is being advertised on comparison sites. This is the link you need.
The card has a representative APR of 18.9% variable. There is no annual fee.
If you apply via the link above, you will receive a bonus of 1,000 Clubcard points when you make your first purchase within two months of receipt. This is worth 2,400 Avios or 2,500 Virgin miles.
There are a number of different versions of the Tesco Clubcard Mastercard available. The 1,000 points is only available with the ‘purchases’ version. This offers 0% interest on new purchases for the first 17 months.
The Tesco Mastercard is no longer as good a deal as it was. The earning rate was recently halved to one Clubcard point per £8 spent. Even worse, the ‘per £8’ is on a transaction by transaction basis and rounded down. A £7.99 purchase earns you nothing. A £15.99 purchase only earns 1 point.
The card is only an OK deal when using it in a Tesco store, where you will receive 1 point per £4 spent.
For long term spending, the earnings rate is as good as you will get – unless you qualify for HSBC Premier – on a FREE Visa or Mastercard:
0.125 Clubcard points for £1 (and in reality you get less because of the rounding down) is 0.3 Avios points per £1 spent
When used in Tesco, you get 0.25 Clubcard points per £1, which is 0.6 Avios per £1 spent
This isn’t a great deal but it is the best you will find.
The sign-up bonus IS OK
Even if the card is a poor deal for day-to-day spending, you may want to get one purely for the sign-up bonus and the ‘0% interest on new purchases for 17 months’ deal.
1,000 Clubcard points are worth 2,400 Avios points or 2,500 Virgin Flying Club miles.
It is not a life changing amount, but still not a bad bonus for a free credit card application.
If you take advantage of the 0% interest deal, you won’t be too bothered about the low Avios earning rate anyway. The real value in a 0% on purchases deal is to spend up to your credit limit, put enough money in a high interest bank account to cover the bill, hide the card in a drawer and then settle the bill just as the 17 months interest free period is about to end.
Want to earn more points from credit cards? – January 2023 update
If you are looking to apply for a new credit card, here are our top recommendations based on the current sign-up bonuses.
In February 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards with a bonus of up to 25,000 Avios. You can apply here.
You qualify for the bonus on these cards even if you have a British Airways American Express card:
You can see our full directory of all UK cards which earn airline or hotel points here. Here are the best of the other deals currently available.
SPECIAL OFFER: Until 21st February 2023, the sign-up bonus on the British Airways Premium Plus American Express card is increased to 35,000 Avios from 25,000 Avios. You can apply here.
British Airways American Express Premium Plus
35,000 Avios (ONLY to 21st February) and the famous annual 2-4-1 voucher Read our full review
American Express Preferred Rewards Gold
Your best beginner’s card – 20,000 points, FREE for a year & four airport lounge passes Read our full review
The Platinum Card from American Express
30,000 points and unbeatable travel benefits – for a fee Read our full review
Virgin Atlantic Reward+ Mastercard
15,000 points bonus and 1.5 points for every £1 you spend Read our full review
Earning miles and points from small business cards
If you are a sole trader or run a small company, you may also want to check out these offers:
SPECIAL OFFER: Capital On Tap has increased its sign-up bonus to points worth 30,000 Avios if you apply by 4th February. This is exclusive to Head for Points readers. Click here to apply.
American Express Business Platinum
40,000 points sign-up bonus and a £200 Amex Travel credit every year Read our full review
American Express Business Gold
20,000 points sign-up bonus and free for a year Read our full review
British Airways Accelerating Business American Express
30,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review
Capital On Tap Business Rewards Visa
Get a 30,000 points bonus, worth 30,000 Avios, until 4th February 2023 Read our full review
For a non-American Express option, we also recommend the Barclaycard Select Cashback card for sole traders and small businesses. It is FREE and you receive 1% cashback on your spending.