Sainsbury’s Finance has launched two credit cards aimed at Sainsbury’s shoppers, promising low interest rates and in one case bonus Nectar card points for its customers.
One card will offer double Nectar points in store, online and in petrol stations for two years and a 12.9% APR on purchases and balance transfers for the same period.
The extra Nectar points are equivalent to an additional 1% discount on a Sainsbury’s shopping bill.
The other credit card will offer 0% APR on purchases and balance transfers for 12 months - only one other credit card on the market offers the same deal – reverting to a standard 15.9% APR after the 12 month period is over.
Sainsbury’s Finance has launched the credit cards against a backdrop of rising interest rates in the market. According to its research, the average interest rate on credit card purchases is currently 18.2% - up almost 2% in two years - and only 6% of credit cards offer 12.9% or less on purchases.
Stuart McKeggie, head of Sainsbury’s Credit Cards said: “Our strategy is very much focused around encouraging more Sainsbury’s shoppers to take out our financial services products, and to do this we need to ensure that we continue to offer them exclusive deals that are extremely attractive.
“We are confident our new credit cards will be well received by Sainsbury’s shoppers.”
The retailer’s research also showed that only 30.8% of credit cards offer a loyalty scheme, including 12 that offer cash back. However, seven of these offer cash backs of less than 1%, and two of those that provide 1% cash back apply fees for having the card.