Focus on: Exclusive! Balance transfer fee refunded in Nectar points

Published:
06 January 2014
Topic:
News,Money,Credit Cards

Are you a regular Sainsbury's shopper with credit card debt that you want to avoid paying a fee to transfer to a card with a better deal?

A new exclusive offer from Sainsbury's Nectar Credit Card and MoneySuperMarket could be just the ticket. Not only does the deal offer 12 months at 0% on both balance transfers and purchases, it also offers MoneySuperMarket users the chance to effectively avoid the 3% balance transfer fee completely by getting it refunded as the equivalent value in Nectar points.

The offer also comes with a generous reward scheme that allows cardholders to collect Nectar points on all shopping bought anywhere - as well as double points at Sainsbury's. Read on to find out more.

What's the deal?

The new Nectar Credit Card Exclusive offers 12 months of interest-free spending as well as 12 months at 0% on transferred debts.

Cardholders can also collect one Nectar point for every £5 spent outside Sainsbury's, plus double points on Sainsbury's shopping and two points for every £1 spent on Sainsbury's fuel.

That's a competitive deal, even taking the 3% balance transfer fee into account. However, the real boon with this offer is that those taking the card out via MoneySuperMarket will receive a refund of the 3% balance transfer fee in Nectar points, as long as they transfer a balance within six weeks of opening their account.

And as 1p equals two Nectar points, you could end up with a large points balance, which can be used for everything from money off your weekly shop to flights and day trips.

This exclusive offer is only available through MoneySuperMarket, and not via the Sainsbury's website.

Who's it good for?

While they have edged down in cost in recent weeks, balance transfer fees can still pose a problem for borrowers looking for a long-term interest-free home for credit card debt - all the top deals charge them. And as the fees are charged as a percentage, those switching a large balance are hit especially hard.

This new offer is therefore great news if this applies to you - especially if you shop or buy fuel a lot at Sainsbury's.

The double benefit of 0% on both purchases and balance transfers also makes it a good all-round card for anyone wanting just one piece of plastic in their wallet or purse.

Any catches?

While not huge for a credit card of this kind, the 16.9% (variable) representative APR will still push your balance up quickly if you fail to clear your balance transfer or your purchase debts in full within 12 months.

The rate you pay also depends on your individual circumstances, with some borrowers who have less-than-perfect credit scores being charged 19.9% (variable) or even 22.9% (variable).

As with most credit cards, there are also charges for cash advances (which come with a 25.9% representative APR) and overseas usage.

What's the verdict?

This is great deal for anyone looking to avoid paying a balance transfer fee, while also having the freedom to spend interest-free for a full year - and earn reward points on their spending.

Alternatively, MoneySuperMarket has also teamed up with Barclaycard to offer another exclusive deal: the new Barclaycard Platinum Purchase Offer, which you can read more about here.

It offers a massive 17 months to pay off any debts you transfer at 0%, plus a generous 14 months of interest-free spending.

The downsides are that there is a balance transfer fee of 2.9%, currently reduced to 2.19% by a cash refund, plus a representative APR of 18.9% (variable).There is also no rewards scheme on the card.

Top tip

If you find the size of balance transfer fee on the Barclaycard deal off-putting, but you would prefer more than 12 months at 0%, the Halifax's Online All in One card is also an option.

It offers 15 months at 0% on both purchases and balance transfers and has a balance transfer fee of just 0.8% (reduced from 3%) and a representative APR of 17.9% (variable).

Again, however, there is no rewards scheme with this card.

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About This Author

Jessica Bown

Google+

Financial journalist