Tesco is to launch a new credit card that promises to give something back to the hard spending consumers in the UK who pay a massive £250 million in interest every month.
The card will take the unusual step of rewarding borrowers who pay off their interest every month without actually touching their original debt – who are often credit card companies’ most lucrative customers.
Every year, the Tesco Bonus Credit Card will reward these spenders – who make up 30 per cent of the credit card market and often pay more than 17.9 per cent APR – by returning one month’s interest every year on the “anniversary” of the card.
“Borrowers tell us that they feel neglected and unrewarded for their loyalty,” claimed Jim Macdonald of Tesco. “We are confident our card meets their needs.
“They tell us that they want deals that are easy to understand, so we have listened to them too.
“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.”
The Tesco Bonus card also offers a best rate of zero per cent on balance transfers and purchases until 1st January 2007 and 12.9 per cent variable thereafter.
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