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...