Sainsbury's has announced the launch a new Visa 0%
credit card, with a 5.9 per cent rate for
balance transfers in the first six months.
The balance transfer offer bucks the emerging trend in 0% credit card offers. Moneyfacts research has shown that of the 59 0% credit card deals in the UK, almost a fifth now charge a fee of up to 2.5 per cent on balance transfers, meaning a charge of up to £50 on a balance transfer of £2,000.
Six months ago only 11.8 per cent of 0% credit card deals charged balance transfer fees, and a year ago fees were unheard of.
The new Sainsbury’s Visa card also continues to offer one of the longest 0% credit card APR deals on purchases, at ten months. Moneyfacts confirms that this is much longer than the market average for a 0% credit card rate, which is 6.7 months.
At the end of the 10 month 0% credit card term, the purchase rate rises to 15.9 per cent APR.
"Our customers consistently tell us that they want a 0% credit card interest rate, so that remains our core offering," said Lucy Hunter of Sainsbury's.
"Whilst an increasing number of providers are now charging a fee to transfer a balance, our new card allows customers to make use of a low lifetime rate for their balances, without having to pay an additional charge to do so."