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Tesco drops the Tesco Premium Credit Card

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A couple of weeks ago, I wrote this article about the Tesco Premium Credit Card.

I suggested that the card did not have much of a future given the closure of Tesco Direct in three weeks, because the main feature – 5000 bonus Clubcard points if you spent £5000 annually across all Tesco businesses – would now become trickier.  I know some people relied on putting large household purchases through Tesco Direct in order to hit the £5000 target.

It seems that Tesco Bank agreed with me.  The Tesco Premium Credit Card is being withdrawn from the market for new applicants.  I don’t know if it is being closed to existing cardholders too.

If you were on the fence about applying, the application form might still be live if you click here.  There is a 5,000 Clubcard points bonus (worth 12,400 Avios or 12,500 Virgin miles) for signing up.  I have been told that it will be gone by the end of today, if it hasn’t gone already.

Whilst this was definitely a niche product – and one I struggled to get excited about – it does have potential.  It may have suffered from poor marketing, because the free travel insurance benefit would have been valuable for a lot of mainstream card users who will not have Amex Platinum, HSBC Premier etc.  At a lower fee (say £50) or with a different benefits package, it may have worked well for a lot of HFP readers as a strong points earner.

I have updated our core ‘best credit card’ articles, all of which are listed on this page of HfP, to reflect this change.

Want to earn more points from credit cards? – September 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:

Barclaycard Avios Plus card

Barclaycard Avios Plus Mastercard

Get 25,000 Avios for signing up and an upgrade voucher at £10,000 Read our full review

Barclaycard Avios card

Barclaycard Avios Mastercard

5,000 Avios for signing up and an upgrade voucher at £20,000 Read our full review

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: The sign-up bonus on the Virgin Atlantic Reward+ Mastercard is doubled to 30,000 Virgin Points if you apply by 2nd October. You receive 15,000 Virgin Points with your first purchase and a further 15,000 points if you spend £3,000 within 90 days. Apply here.

British Airways American Express Premium Plus

25,000 Avios 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 a huge range of valuable benefits – for a fee Read our full review

Virgin Atlantic Reward+ Mastercard

30,000 bonus points (SPECIAL OFFER TO 2ND OCTOBER) 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:

American Express Business Platinum

40,000 points bonus and an annual £200 Amex Travel credit Read our full review

American Express Business Gold

20,000 points sign-up bonus and free for a year Read our full review

Capital On Tap Business Rewards Visa

Get a 10,000 points bonus plus an extra 500 points for our readers 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.

Barclaycard Select Cashback credit card

1% cashback and no annual fee Read our full review

Comments (154)

This article is closed to new comments. Feel free to ask your question in the HfP forums.

  • the real harry1 says:

    what’s your strategy for hitting £5000 spend now Direct has gone bump? The annual fee is not refunded pro rata if you cancel the card…

    • ankomonkey says:

      Tesco Hoi Sin Duck wraps are highly recommended 🙂

    • Rob says:

      I would ring and ask for a refund on the grounds you expected Direct to be included.

    • Stuart says:

      Whats the view that if I apply today-£pay the fee- That Tesco will refund that fee when they close the card? (hopefully within 12 months)

      • Rob says:

        They might not close it to existing customers, that’s the thing …. so some risk. Although, of course, the 5000 Clubcard points offsets the fee 100%.

    • Liz says:

      Gift card purchases do count towards the £5k target

    • Genghis says:

      @Stuart. That was my initial thought yesterday but then decided against it as I wouldn’t otherwise get the card.

  • Premgenius says:

    That’s good to hear that Tesco will be refunding the Cash Withdrawal Fee but will that be automatic for or upon contacting Tesco Bank customer services for the refund?

  • Genghis says:

    Totally OT. Has anyone had their IHG points for booking restaurants through the IHG Opentable link? I’ve had quite a few meals now but no points. How long does it normally take?

    • Lottie says:

      I didn’t get mine . I phoned to query after 8 weeks and they credited manually.

    • Andrew (@andrewseftel) says:

      I had 2/2 bookings credit. Took a couple weeks I think. Status qualifying too.

  • Dan Snowden says:

    Re: What will happen to miles after the Miles&More card changes to Horizon, I’ve occasionally seen expiry warnings appear on my mileage statement online when waiting for miles (from the card) to be credited so I suspect it’ll be the first possibility (immediate expiry in Sept). I really can’t see Lufthansa making an exception for ex cardholders.

    • Rob says:

      We are to be contacted, if you read the back of the letter (easy to miss, I admit).

      • RussellH says:

        VERY easy to miss – I think I found it at the third read through.

        I thought, though, that the statement that LH will be contacting us was positive.

        I was wondering if they might do something on length of membership – having been a member for some 20 years, I think, though never got any points from flying LH, since all the LH flights I have taken were non-qualifying. Did get a chunk of points from a transatlantic SAS business class trip two years ago, and I must have spent most of those on a reward flight last summer.

  • Kevin says:

    Slightly relevant question as the Tesco Premium comes with travel insurance. I now have travel insurance with HSBC Premier and Amex Platinum. Are they very different? Which one is better to make a claim on?

    • Rob says:

      As Amex Plat requires certain things to be paid on an Amex, you may find smaller claims can only (if you didn’t use an Amex) go vis HSBC.

      I would guess for anything else it is 100% down to that particular line item. I doubt there is a definitive answer.

      • Lawro says:

        Amex Plat allowance was £400 per affected person per day for a claim at the beginning of the year, HSBC only offered £100pp per day (similar situation) a few months later.

        Incidentally, Amex Plat (AXA) was happy to reimburse items paid on non-Amex provided the vendor didn’t accept Amex.

        • the_real_a says:

          Its in the terms and conditions that if the vendor does not accept you should submit the merchant information (to prove they don’t accept amex) as part of the claim. You of course have a responsibility in law to “limit your losses” – if a “cash” only supplier was substantially cheaper to then this would be one hell of a strong argument!

  • Roger1* says:

    The MBNA/M&M letters dropped on our doormat this morning. Similar to the AA and VS letters but with the promise of a £15 credit by the end of August if our accounts are still open.

    We would in theory have 3 Horizon cards each, so 6 between us. We don’t need them all! I plan to ask MBNA to combine mine into one account with a combined limit.

    • Rob says:

      No £15 credit for me. And, according to the back of the letter, I put six figures on the card last year, albeit mainly all VAT, PAYE etc.

      • c55 says:

        No £15 credit for me either…..and they say I spent just over a quarter of a million on the m&m card last year!

        I hope common sense prevails and at least they give us Frequent Traveller status for even one day, so that the policy described above by riku2 kicks in: –

        “How long will my miles remain valid if I lose my Frequent Traveller, Senator or HON Circle Member status?
        For as long as you have a given status, irrespective of which one, your miles will not be subject to mileage expiration. Mileage expiration is only reactivated when Frequent Traveller status is lost. From that point onwards they are valid for 36 months and then expire at the end of the quarter.

        An example: your Frequent Traveller status expires on 1 March 2019. If your status is not renewed or a new status achieved, your miles will then be valid for a further 36 months – until 1 March 2022. They will expire at the end of the next quarter, i.e. on 31 March 2022.”

    • Alan says:

      Good plan, am planning the same. I got £55 AA, £15 VS White and £0 VS Black.

  • Mikeact says:

    Re Tesco/Curve…interesting, charges only ‘paused’.

  • Paul says:

    Referred wife for Amex Plat, from my Amex Plat. How long does it usually take for referral points to post? And also I assume I’d need to wait for those referral points before closing my Amex Plat?

    • Rob says:

      48 hours from acceptance. And, er, yes.

      • Rob MC says:

        I referred someone on Sunday yet still no referral points

      • Jimbob says:

        In my recent experience you generally get the referral bonus, the same day the card comes through the post. So about 7 days after acceptance

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