Sainsbury’s Bank launches top balance transfer and spending credit card with 27 months 0% interest
SAINSBURY’S Bank has launched a balance transfer and spending credit card with an interest-free period of 27 months – the longest period currently around.
The card also lets you earn a bonus of 7,500 Nectar points, worth £37.50, in the first two months.
It comes with no annual fee, but you’ll have to pay a 3 per cent fee (minimum of £3) if you want to transfer the debt.
After 27 months, the dual offer credit card increases to a typical annual percentage rate (APR) of 20.9 per cent, so it’s important that you clear the debt in full before the interest free period ends.
If you’re unable to pay it all off on time, you could shift it to another 0 per cent balance transfer card beforehand – you can find the best cards of this kind here.
Like most Sainsbury’s cards, you’ll earn Nectar points when you spend on the card: two for every £1 spent on Sainsbury’s shopping or fuel and one point per £5 spent everywhere else.
Each time you spend £35 or more on Sainsbury’s shopping in the first two months you’ll get 750 points, up to a maximum of 10 times.
You can then spend the points in places such as Sainsbury’s own stores, Vue Cinemas, Argos or on Nectar.com.
Balance transfer cards: what you need to know
SHIFTING your balance can be a great way to cut the cost of your debt. But you must use them properly so you don't just add to it.
Always clear your debt – Credit card firms don’t offer these deals out of the goodness of their hearts. They rely on you not clearing your balance by the time the 0 per cent deal comes to an end so it can start charging you interest.
Always make your payments – If you don’t keep up with your monthly payments, you could lose the 0 per cent offer and start being charged interest. Always try and pay-off more than the minimum payment too to clear your debt quicker and don’t spend on the card either.
Check your deal – Like with all credit cards, you might not be offered the headline deal if you don’t have the best credit history. Use MoneySavingExpert’s eligibility calculator to see what deals you are likely to be accepted for.
But be warned – only those with the very best credit ratings will be offered the marketed deal.
So even if you apply and are accepted, you could be offered a smaller 0 per cent period instead and be charged a bigger transfer fee.
In fact, Sainsbury’s says it may offer you a 0 per cent interest period of 23 or 19 months instead depending on your individual circumstances.
Another best buy dual credit card is Santander’s All in One credit card, which offers an interest-free period on both spending and balance transfers of 26 months.
It comes with no balance transfer fee and offers 0.5 per cent cashback on all spending, although you’d have to pay £3 a month to use it.
The Sainsbury’s launch comes after research by comparison site Moneyfacts found that the number of interest-free balance transfer deals fell to a record low this month – from 122 in 2017 down to 76.
Yet with many Brits looking to overhaul their finances in January, lenders have rolled out more attractive deals as they battle for our custom.
As of this week, credit card users who transfer at least £2,500 onto either of Barclaycard’s balance transfer cards within the first 60 days will get £20 in cashback.
The deal is available to customers until February 5.
The cards offer an interest-free period of up to 28 months on balance transfers, but not on purchases.
Salman Haqqi, personal finance expert at comparison site money.co.uk, said: “The balance transfer market is becoming more and more competitive as lenders look to attract new customers looking to move their debts around following the excesses of the festive season.
“0 per cent balance transfer credit cards are a great way to avoid paying interest on debts, as long as you can afford the monthly repayments.
“While using 0 per cent interest balance transfer cards can provide invaluable breathing space for those seeking to clear their debt, they do require careful management.”
How to cut the cost of your debt
BEING in large amounts of debts can be really worrying. Here are some tips from Citizens Advice on how you can take action.
Check your bank balance on a regular basis – knowing your spending patterns is the first step to managing your money
Work out your budget – by writing down your income and taking away your essential bills such as food and transport.
If you have money left over, plan in advance what else you’ll spend or save. If you don’t, look at ways to cut your costs
Pay off more than the minimum – If you’ve got credit card debts aim to pay off more than the minimum amount on your credit card each month to bring down your bill quicker
Pay your most expensive credit card sooner – If you have more than one credit card and can’t to pay them off in full each month, prioritise the most expensive card (the one with the highest interest rate)
Prioritise your debts – If you’ve got several debts and you can’t afford to pay them all it’s important to prioritise them.
Your rent, mortgage, council tax and energy bills should be paid first because the consequences can be more serious if you don’t pay
Get advice – If you’re struggling to pay your debts month after month it’s important you get advice as soon as possible, before they build up even further.
Groups like Citizens Advice and National Debtline can help you prioritise and negotiate with your creditors to offer you more affordable repayment plans
Most read in money
If you’re considering applying for a personal loan or balance transfer credit card, here’s the best option for you.
You can also save £300 off your store card balance by transferring the debt to a 0 per cent credit card.
Looking to make a big purchase this year? Here are the best 0 per cent interest-free credit cards for spending and purchases.