Focus on: Sainsbury’s new low rate credit card

There has been plenty of activity in the balance transfer credit card market recently, but relatively little movement when it comes to cards which offer consistently low standard rates – until now that is.

Low standard rate credit cards are worth considering if you won’t be able to clear your balance during the 0% introductory periods offered by other cards, and don’t want to switch your card again once it ends. You’ll pay interest but not as much as the rates charged on many credit cards.

Sainsbury’s has just thrown down the gauntlet to other providers by launching a new market-leading low rate credit card with a representative annual percentage rate (APR) of just 6.9%, with no balance transfer fees. Here, we take a look at who the card is suitable for, and whether there are any catches to watch out for…

What’s the deal?

Sainsbury’s new low rate card, which is only available to customers with a Nectar card, offers a representative APR of 6.9% on new purchases and balance transfers, and importantly does not impose any balance transfer fees. If you don’t already have a Nectar card, you can pick one up free of charge in your local Sainsbury’s. The card does not have an annual fee.

Stuart McKeggie, Head of Sainsbury’s Credit Cards said: “With no balance transfer fees, those who may previously have switched cards for introductory offers can avoid incurring a balance transfer fee while enjoying a low rate."

Any catches?

Unless you have an impeccable credit history, you may be offered a higher representative APR of either 9.9% variable or 12.9% variable,

While you have to have a Nectar card to apply for the new low rate Sainsbury’s card, you do not get any Nectar points when you spend.

You should not use this card to make cash withdrawals, as these are charged interest at a hefty 24.93%. You will also be charged a withdrawal fee of 3%, with a minimum charge of £3. 


With an APR of just 6.9% this card offers a much cheaper way to borrow than an overdraft, and as it doesn’t have a balance transfer fee is a good option for those looking to pay a lower rate of interest on existing debts.

If you can't clear your statement balance in full every month the interest charges are manageable, although of course you should still try to pay off your debt as soon as possible.


Top tip

If rewards are important to you and you are able to clear your balance every month, then you may want to consider as an alternative the Sainsbury’s Nectar Credit Card, which has a representative APR of 16.9% variable.

This offers double Nectar points on Sainsbury’s shopping in-store, online and in petrol filling stations for two years, and has a 15-month 0% introductory offer on balance transfers, subject to a 3% fee, as well as a 6-month 0% introductory offer on purchases.

You can also collect Nectar points when you use your Sainsbury's Nectar Credit Card elsewhere, receiving point for every £5 you spend.

Please note: Any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.

We’re free, independent and compare all UK credit cards, as well as offering exclusive deals you can’t get anywhere else.

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