Approval for any credit card will depend on your status. The APR shown represents the interest rate offered to most successful applicants. Depending on your personal circumstances the APR you're offered may be higher, or you may not be offered credit at all. Fees and rates are subject to change without notice. It's always wise to check the terms of any deal before you borrow.
Sainsbury’s Bank Low Balance Transfer Fee Credit Card review 2020
Like its rivals Barclaycard and Virgin Money, Sainsbury's Bank now offers a spread of balance transfer deals in the hope that one of them will be just right for you.
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In a nutshell:
0% interest on balance transfers
0% interest on purchases
|Balance transfers||0% for 25 months reverting to 20.95%|
|Balance transfer fee||1.85% (min. £3) for 3 months reverting to 1% (min. £3)|
|Purchases||0% for 3 months reverting to 20.95%|
|Purchases interest-free period||Up to 56 days|
|Min credit limit||£0|
|Max credit limit||Not specified|
|Additional cards available||1|
|Incentive||Earn 750 bonus Nectar points each time £35 or more spent on Sainsbury's shopping, up to ten times in your first 2 months, up to a total of 7,500 points, offer available for new customers. Earn 3 Nectar points per £1 spent in Sainsbury's and Argos. Earn 1 Nectar point for every £5 spent elsewhere.|
Chris Lilly is a publisher at finder.com. He's a specialist in credit-based products including business and personal loans, mortgages and credit cards, and is passionate about helping UK consumers make informed decisions about their borrowing. In his spare time Chris likes forcing his kids to exercise more.
Slotting into the middle of Sainsbury’s Bank’s range of balance transfer deals, this card offers a 25-month window in which you won’t pay interest on your transferred balance in return for a reduced balance transfer fee (which is a percentage of the balance you wish to transfer).
Naturally, when seeking to clear existing card debt, you should look for no-transfer-fee deals first. The trouble is that these tend to not have the longest 0% interest periods. If you really need as long as possible at 0%, then a transfer fee might be worth swallowing.
Sainsbury’s Bank specifies that some applicants may be offered a shorter 0% period, depending on individual circumstances (typically if you have a limited or less-than-perfect credit history).
Like all Sainsbury’s cards, this offer comes with the opportunity to earn Nectar points. Transferred balances won’t earn Nectar points though, only additional spending will. So if your main objective is clearing your card debt, try not to be tempted into using your card to make purchases, just to collect a few points. Once the 25 months are up, any outstanding balance will start to accrue interest at the card’s standard rate of 20.9% (that’s a variable rate, so it may well have moved by that point).
How does this card compare to other similar cards on the market?
When it comes to repayments, you can make manual repayments online or over the phone (08085 40 50 60). Alternatively, you can set up a direct debit. A direct debit is a great idea because it means you won’t forget to make a repayment and either damage your credit score, get hit with a penalty fee or lose any promotional rates as a result.
If you transfer a balance to this card, you could divide that balance by 25 and set up a direct debit for that amount each month. This will ensure you are debt-free before the 0% interest period expires. If you do this, bear in mind these payments won’t factor in any additional spending on the card, and also that once you’ve cleared the balance, you’ll then want to adjust the direct debit.
You can arrange regular direct debit payments when you apply for the credit card. The table below shows the options available.
Choose from the following direct debit options for your monthly repayments:
|Minimum amount||Fixed amount||Fixed percentage||Full amount|
How to apply for the Sainsbury’s Bank Low Balance Transfer Fee Credit Card
If you’ve compared cards and want to apply, complete the secure online application form to start, which takes about 15 minutes. Before you apply, check that you meet the eligibility requirements and have the information and documents you’ll need to make the process as straightforward as possible.
Frequently asked questions
Can I withdraw cash using the Sainsbury's Bank Low Balance Transfer Fee Credit Card?
Although it's possible, withdrawing cash from a credit card account is generally not a good idea, as "cash-like transactions" (withdrawing cash at an ATM, getting cashback at the till, spending at a casino, buying currency, etc.) often incur steep fees and/or higher rates of interest.
The cash advance fee on the Sainsbury's Bank Low Balance Transfer Fee Credit Card is 3% (min. £3). For example, if you withdraw £50, you'll incur a fee of £3.00. Withdraw £250, and you'll incur a fee of £7.50.
The interest rate on this part of your balance will be 25.95%, which is 24% more than the standard purchases rate (chargeable from the day of the transaction – the card's usual "up to 56 days interest-free" grace period won't apply).
What should I do with my old credit card after transferring the balance to the Sainsbury's Bank Low Balance Transfer Fee Credit Card?
Transferring a balance doesn't automatically close your old account. In most cases, you'll want to close the old account(s) straightaway, especially if they have an annual/monthly fee or if you might be tempted to use them in the future. There is an argument that you should keep the old account open to help your credit score. That's because doing so keeps your "credit utilisation ratio" lower (that's a measure of how much credit you're using compared to what's available to you), and helps the average age of your credit accounts. However, unless you're just about to apply for a new mortgage, it's probably fair to say that most people would prefer to have no more bank accounts open than was truly necessary.
How much does it cost to use the Sainsbury's Bank Low Balance Transfer Fee Credit Card abroad?
Non-sterling transactions are subject to a 2.75% charge. For example, if you spend 200 euros (£177.37), it'll cost you around £4.88.
What is the minimum payment on the Sainsbury's Bank Low Balance Transfer Fee Credit Card?
Each month you must pay at least 2.25% of your balance at that point or £5.00 – whichever of the two figures is greater. So if you had, say, £200.00 outstanding, you'd pay £5.00, and if you had £888.89 outstanding, you'd pay £20.00.
Paying only the minimum required amount each month is generally not advisable as it makes it much harder to get debt-free before that introductory 0% period expires.
Can I transfer money from the Sainsbury's Bank Low Balance Transfer Fee Credit Card to a bank account?
Yes. That's what's known as a "money transfer" (rather than a "balance transfer") in credit card jargon. You can arrange this from your online banking or using Sainsbury's Bank's app. This part of your card balance will incur interest of 25.95%. The fee for a money transfer is 4% (min. £4).
Can I request an additional Sainsbury's Bank Low Balance Transfer Fee Credit Card?
Yes, you can request one more. There's no fee for additional cards. Plus, with additional cards, you could earn points at a faster rate. Bear in mind that card debt accrued by additional cardholders is the sole responsibility of the account holder – not the additional cardholder.