Review of the week: Sainsbury’s Credit Card 0% for 12 months

The credit card arena continues to be a hive of activity with Sainsbury’s Finance the latest provider to enhance its offerings.

Not content with having one of the market-leading loan rates, Sainsbury’s has overhauled its credit card deals. It has launched a new product, the Nectar credit card, which gives cardholders the opportunity to earn double Nectar points for two years and improved its existing credit card to make it the market-leading card for purchases and balance transfers. There is a catch however…

What’s the deal?

The Sainsbury’s Credit Card offers new customers a 12-month interest-free period on both purchases and balance transfers. This makes the supermarket giant one of only 2 providers in the market that offers this type of deal – with the other being offered by Virgin Money.

Once the balance transfer period has come to an end, the APR will move to a typical annual percentage rate (APR) of 15.9%.

Any catches?

Interestingly, while the 12-month 0% periods are an enhancement of Sainsbury’s previous offer, there is a catch: only Nectar Card holders can apply for this card.

If you want to take advantage of the interest-free balance transfer offer and move a balance over from another card, you will be charged a 3.0% fee. For example if you transfer a balance of £2,500 you will be charged an extra £75 for the privilege which will be added to the balance of the card.



If you are looking for a 0% credit card deal to spread the cost of a large purchase, 12 months interest-free is the longest you can get, so the new Sainsbury’s Credit Card is a great option (Virgin and Tesco also offer 0% for 12 months on purchases).

It’s also a great option if you want to reduce the cost of an existing credit card debt by transferring it onto a cheaper card.

There are longer interest-free balance transfer offers available, but not if you want a credit card to spend on as well. Most balance transfer offers have a shorter interest-free period on purchases meaning that you’ll start accruing interest after the first few months. The Santander Credit card for example, has a 15-month interest-free period on balance transfers but the 0% offer on purchases lasts for just three months.

Therefore, if all you want a new credit card for is to benefit from a low balance transfer rate, then there are better deals available. However, if you want a card to spend on as well, the Sainsbury’s card is the joint best on the market.

And all is not lost if you don’t currently have a Nectar Card, obtaining a Nectar Card is simple – you can either apply online or grab a leaflet in store when you are shopping. Once you have received your Nectar Card, all you have to do is use it whilst making a purchase at Sainsbury’s or one of the other Nectar Card partners and then you are eligible to apply for the credit card.

If you already have a Nectar Card and want to apply for the Sainsbury’s Credit Card, click here.

Top Tip

Aim to have cleared your balance by the time the 0% period ends as the rate of interest will leap up at that point.

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.

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