Stick with Tesco CC or move for better Cashback?

Robwales

Hi there


My wife and i are longterm Tesco CC holders, with link to Clubcard
Im trying to determine what benefit we actually derive in £ from having this card - and struggling!


From my calcs, for approx £36k p.a spend, the £25 per yr Amex Card (1.25% over £10k) would be the best of the cash back options...deriving £412.50 cashback from my calcs.

But what is the calc for Tesco...lets assume £10k spent in store, £3k fuel and £13k elsewhere


Can anyone help me understand definatively what points this derives, and how points translate into £ we can spend in store in groceries? (using the rewards for other stuff such as restaurants etc isnt really applicable as we live in the sticks. And these days you cant use rewards for laptops etc right?)


Cheers!

Terry_Towelling

Isn't all this information on the Tesco website?

molerat

The credit card gets you 1 point per £4 spent in Tesco stores and Tesco fuel and 1 point per £8 spent elsewhere on top of the usual clubcard 1 point per £ spent in Tesco stores and 1 point per £2 spent on Tesco fuel. These are on individual spends and not balances.

Ben8282

It all depends on the redemption value of the Clubcard point.

When choosing a reward card it is important to choose the one which is right for YOU and take into consideration everything, not just a headline cashback rate.

It may well be that the Amex cashback card you mention is the most suitable for you. Equally it might not be. Remember of course that the cashback is paid annually in case you are used to redeeminbg your Clubcard points more frequentyl.

Obviously you do a lot of shopping in Tesco. I don't particularly like Tesco so buy very little from them which explains my lack of knowledge about the value of Clubcard points.

One card that I have recently obtained is the Sainsburys card. I spend quite a lot with Sainsburys, petrol, groceries and cigarettes and this card works very well for me. The card gives 2 nectar points for each £1 spent in Sainsburys, which based on the redemption value of Nectar points in Sainsburys is 1%. This is in addition to the normal Nectar points obtained through the Nectar card so overall I get the equivalent of 1.5% on Sainsburys shopping, aprox 1.4% on petrol (Nectar points awarded through swiping the Nectar card are per-litre not per-pound) and 1% on cigarettes (no Nectar points awarded by swiping the Nectar card). So this card works very well for ME because I spend enough in Sainsburys to make it worthwhile.

Robwales

i found this after a lot of hunting around:



Using Clubcard Credit Card
Tesco Fuel 5 points per £4 spent
In Tesco spend 5 points per £4 spent
Out of Tesco spend 1 point per £8 spent


1 point = £0.01 reward (approximately)

20aday

If you decided to stick with your Clubcard you could join their Christmas Saver scheme?

Your points are 'saved' until the November statement is generated; if you tend to do bigger shops towards Christmas they might come in handy?

Edit: I don't know if it's still the case but you used to be able to just use your Clubcard, without charging the transaction to your credit card, and earn one point per £1 spent.

Robwales

so - seems i could double my £ if i went to best cashback (Amex Platinum) vs Tesco!

Tesco = £191
Tesco spend points £
Groceries £10,000.00 12,500 £125.00
Fuel £3,000.00 3,750 £37.50
Other £23,000.00 2,875 £28.75
Total £36,000.00 19,125 £191.25

Amex
Amex
£9,000.00 5% £125.00
£10,000.00 1.00% £100.00
£17,000.00 1.25% £212.50
£36,000.00 £437.50
-£25.00
£412.50

OR i use Tesco CC only for Tesco purchases and cashback Amex CC for all other expenses would derive exactly the same benefit:
MIX spend points £
Groceries £10,000.00 12,500.00 £125.00
Fuel £3,000.00 3,750.00 £37.50
£9,000.00 5% £125.00
£10,000.00 1.00% £100.00
£4,000.00 1.25% £50.00
£437.50
-£25.00
£412.50

Robwales

+ Amex can be used with Samsung / Google Pay - that for some odd reason Tesco CC cannot!

Ben8282

£36,000.00 p.a. is a relatively high credit card spend. Do you really have only the one Tesco card and put this level of spend through it?
What sort of things do you spend it on? Taking that into account may help you to find the best card for you.
Note that the 5% Amex introductory offer will be once only and will not apply in future years.

Robwales wrote: »

i found this after a lot of hunting around:



Using Clubcard Credit Card
Tesco Fuel 5 points per £4 spent
In Tesco spend 5 points per £4 spent
Out of Tesco spend 1 point per £8 spent


1 point = £0.01 reward (approximately)

You are spending £36,000.00 p.a. on this card but had to do a lot of hunting around to find out this basic information?

Robwales

Thanks Ben


Basically i spend everything via the CC - it covers work expenses and all other payments eg large family shop @ £200 per week = £10k p.a...household bills, Trains, hotels, and meals with work is another large element. Then one off stuff like holidays. Plus fuel each mth.



Essentially i use it as a vehicle for all payment and then pay it off each mth in full.



I do also have a Halifax clarity for some foreign stuff eg if i need cash abroad.



I got the Tesco one years ago and just kept as there were / are "some" rewards and Tesco is our default family shop due to geography...I understand how it works in principle and just accumulated the points / vouchers.


But lack of Samsung Pay compatibility has piqued my interest in alternative CCs.



Its not exactly a life changer - but does seem moving to the best cashback could gain me £221 p.a based on my estimated CC spend. Yes the 2nd year would be a little less....but not a lot less (£208).

Ben8282

Oh yes nothing wrong with getting the best rewards you can. Not interested in Samsung Pay though. Seems easier just to take out the card rather than mess around with a phone.
OK. No big airline spend or anything like that so looks as if the cashback card will probably be the best for you. Can't really think of anything better from what you have written.