Sainsbury's slashes credit card APR

Monday, 05 October 2009 12:00

Sainsbury's has reduced the annual interest rate on its credit card and increased the period in which zero per cent is charged on purchases.

The APR on the credit card, which offers Nectar points equivalent to two per cent cashback on Sainsbury's purchases, has been slashed from 16.9 per cent to 15.9 per cent.

And the introductory period in which purchases on the card are charged at zero per cent interest is now ten months, an increase from the original three months.

Stuart McKeggie, head of credit cards at the bank, said the improved zero per cent deal and APR reduction was an example of Sainsbury's going against current market styles.

Research has shown, Sainsbury's said, that credit card firms had cut the number of zero per cent deals by a fifth in the past year while rates had increased to 18 per cent.

"We are bucking the trend," said Mr McKeggie, "and hopefully offering borrowers a bit of respite in what is still a tough economic climate for many."

The card charges zero per cent interest for 12 months on Sainsbury's purchases, zero per cent on non-Sainsbury's purchases for ten months and zero per cent on balance transfer for ten months, subject to a three per cent fee.

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