Sainsbury's credit card

Banking and Borrowing

Updated on 08 April 2010 | 0 Comments

Donna Werbner reviews the pros and cons of the Sainsbury's credit card

The Sainsbury’s Credit Card is one of my favourite cards on the market.

It offers 0% interest on BOTH balance transfers and purchases for an ENTIRE YEAR.

That means it’s a great card for anyone with credit card debt, who ALSO wants to spend on their card, interest-free.

Negative Order of Payment

If you’re a regular reader of lovemoney.com articles, you’ll know that one of our bugbears is a nasty little trick credit card providers like to play called negative order of payment.

This FORCES you to pay off your cheap, interest-free debts first, while any other debts you’ve run up sit on your card, racking up interest at rates of 15 per cent or more!

Luckily, with the Sainsbury’s Credit Card, the interest-free period for balance transfers and new purchases is exactly the same. So  you don’t have to worry about negative order of payment. You can transfer over your debts and spend on the card, knowing you won’t be penalised for it later.

The catches

There are three things to watch out for with the Sainsbury’s Credit Card:

Firstly, you must have a Nectar card to get this card, and get it swiped in store in the last six months. Nectar cards are free to get, and give you rewards when you spend at Sainsbury’s and other high street shops.

Secondly, when you transfer a balance, you have to pay a fee of three per cent.

And thirdly, after a year, the interest rate on the card jumps up to 15.9 per cent. So make sure you’ve paid off your entire balance by then, or shop around for another nought per cent card.

Is it the market-leader?

While the balance transfer period on this card isn’t as long as it is on some other cards, if you want a card that allows you to pay off your existing credit card debts and spend, interest-free, then this is the best card you can get.

Apply for the Sainsbury’s Credit Card now...

Comments

Be the first to comment

Do you want to comment on this article? You need to be signed in for this feature

Copyright © lovemoney.com All rights reserved.

 

loveMONEY.com Financial Services Limited is authorised and regulated by the Financial Conduct Authority (FCA) with Firm Reference Number (FRN): 479153.

loveMONEY.com is a company registered in England & Wales (Company Number: 7406028) with its registered address at First Floor Ridgeland House, 15 Carfax, Horsham, West Sussex, RH12 1DY, United Kingdom. loveMONEY.com Limited operates under the trading name of loveMONEY.com Financial Services Limited. We operate as a credit broker for consumer credit and do not lend directly. Our company maintains relationships with various affiliates and lenders, which we may promote within our editorial content in emails and on featured partner pages through affiliate links. Please note, that we may receive commission payments from some of the product and service providers featured on our website. In line with Consumer Duty regulations, we assess our partners to ensure they offer fair value, are transparent, and cater to the needs of all customers, including vulnerable groups. We continuously review our practices to ensure compliance with these standards. While we make every effort to ensure the accuracy and currency of our editorial content, users should independently verify information with their chosen product or service provider. This can be done by reviewing the product landing page information and the terms and conditions associated with the product. If you are uncertain whether a product is suitable, we strongly recommend seeking advice from a regulated independent financial advisor before applying for the products.