4 April 2006
A new credit card has been launched, aimed at those customers who are constantly paying interest on their outstanding balance every month.
Tesco will launch the new card this week, in order to help what it calls 'forgotten' customers, who pay a total of £250 million in interest alone each month.
The Bonus Credit Card is designed to help these customers pay off their balance quicker by giving one month's interest back to them on the anniversary of the card.
Jim Macdonald, chief executive of Tesco Personal Finance, said: "While much is offered to 'transactors' - card holders who pay off their balance most months, and who get the benefit of most loyalty programmes such as clubcard points or cashback - borrowers as a group have been largely neglected until now.
"Borrowers tell us that they feel neglected and unrewarded for their loyalty. We are confident our card meets their needs."
He added: "They tell us that they want deals that are easy to understand, so we have listened to them too. The benefits of the Tesco Bonus Credit Card deal are transparent, easy to understand and there are no hidden catches."
Customers constantly paying off their balance represent 30% of the credit card market and some are being charged in excess of 17.9% APR, according to the company.
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