Beware Sainsbury's Credit Card 0% on purchases gotcha

helkav

I have recently got the Sainsbury's credit card as indicated in the credit card section as being 0% on purchases for 12 months if you already have a nectar card. So imagine my surprise when I sent an email to sainsburys to confirm the 0% period and I got this in my reply

"Your account currently has 0% on balance transfers for 10 months, 0% for 12 months on in store retail purchases and 0% for 3 months for purchases out with Sainsbury's from the 21st April 2010"

now that wording "purchases out with Sainsbury's is a little odd but I suspect it means purchases from Sainsburys. I am double checking.

I could not find this anywhere in the paperwork I got with the card - it was all 12 months as far as I can see. I presume it's in the small print somewhere.

Fortunately I have not bought the yacht and the villa yet, so it's not the end of the world!

It would be really good if the site flags this up where it has it's info about the Sainsbury's card to prevent other users falling for this

Tixy

Have you used your nectar card in store in the last 6months?

I agree its not clear but I would have assumed the opposite to you that the 0% for 3months was purchases not with Sainsbury's (seeing as the in store purchases are dealt with by 'in store retail purchases'. Might be a typo on the email.

mum1plus1

Would be very interested in the results of this as ive just got one but not used yet!

lisyloo

For non-nectar card holders it looks very clear to me.

http://www.sainsburysbank.co.uk/credit_cards/micro/cca_search_120909_apply_micro.shtml

(the time limits may have changed since you took your card).

Tixy

What did the T&C you signed say? did it say something different to drive you to email them to check?

helkav

here it is:

"To avoid interest on any purchases out with Sainsbury's they would need to be repaid within 3 months of the 21st April.
Please be aware when making payments the payment is allocated to each type of purchase, to ensure you clear non Sainsbury's purchases you would need to repay the total outstanding balance on the account."


I am actually more confused now...do I need to clear the whole balance in 3 months? Clear English, this is not.

Jigga

“out with” is just a legal phrase that in this case definitely means purchases that are not made at Sainsbury’s. It’s in plain language on their site, ‘all other shopping’:

http://www.sainsburysbank.co.uk/credit_cards/cca_credit_card_121212_std_skip.shtml

It looks as the T&Cs have changed for new applicants since you got your card as it is currently 9 months at 0% for other shopping if you don’t have a nectar card and 12 months if you do:

http://www.sainsburysbank.co.uk/credit_cards/cca_creditcard_zone.shtml

So yes, if you make non Sainsbury’s purchases on this card and don’t repay before 21st July, you’ll start to accrue interest.

Equally, as in line 3.6 of the T&Cs you will need to bear the order of repayments in mind. If you make both Sainsbury and non Sainsbury purchases and don’t clear the full balance of all purchases by 21st July you will start accruing interest as your repayments go towards the proportion of the debt that has the lowest interest first before repaying sections of the debt that attracts higher interest.

This is standard practice for the majority of cards as so many people on this forum find out slightly too late. The usual is Virgin offering 0% BTs near the end of a current deal. The BT is made, but unfortunately it is sitting at the top of the order of repayments pile whilst the original debt sits underneath continually accruing interest and the principle is not reduced at all until the new BT is cleared.

Sounds like you applied for your Sainsbury’s card just a month too early to take advantage of the better non Sainsbury’s purchases deal, but hey, if we could all predict what would happen in the future, I’m sure that I lot of us would take different decisions.

You ain’t been ripped off, it’s just unfortunate timing.

Jigga

Good job you haven’t bought the yacht or villa. They would definitely be purchases ‘out with’ Sainsbury’s…… unless your local branch is better than mine. :rotfl:

helkav

thanks very much Jigga. I guess my best bet is to hold off on any spending on that card until after 21st July...grrr

unless I pay it all off this month, and that would mean a fresh start, right? I guess I need to get back to Sainsbury's again on that

I still think it would be good to flag this having to spend at sainsbury's on the MSE site, unless I've just not seen it?

helkav

hmmm....just been to sainsburys' credit card offer page and saw this - thing is I don't remember ever seeing anything about 3 or 9 months

• 0% for the first 12 months on Sainsbury’s shopping
• 0% for the first 12 months on balance transfers (3% BT fee applies)
• 0% for the first 12 months on all other shopping

I now wonder if Sainsburys' are answering as if I'm not a Nectar credit card, because that's what I applied for

Jigga

Yes, if you’ve already made non Sainsbury purchases and wish to take advantage of the 0% Sainsbury shopping for the remaining offer time, but avoid paying any interest within the first 12 months of your card, you’ll need to pay off all the current debt before 21st July and then once you have done that, use that card exclusively for Sainsbury purchases until full repayment again before 21st April 2011.

I don’t know if this would apply to you helkav, but non Sainsbury purchases also applies to: ‘Excludes Sainsbury's Telecoms and Energy which will be treated as non-Sainsbury's’. It’s in small font under the ‘Apply’ section on the website.

I don’t have a Sainsbury card, but been tarting for a while so I know where people can find themselves liable for terms that they didn’t originally realise and from that, I just go looking for where these clauses are usually found. And of course, they are usually in small, greyed font (as in the example above) or buried in the pages of the T&Cs.