Sainsburys 0% card

Hugh_Justdare

Hello,
I've got a Sainsburys card that allows 0% on purchases,which is fine.
Though I would rather use the 0% for balance transfers from other cards.
But they charge a higher rate for balance transfers.
Is there any way i can get around their purchases only rule and really what are the benefits of the purchases only cards?
Thanks

Tim_L

Purchase only cards are a little better than currently available cashback purchase cards, providing you pay an equivalent amount to the full monthly balance into a high interest savings account.

johnllew

A 0% purchase card is ideal when you are planning to make a large one-off purchase at the beginning of the offer - a car, kitchen, bathroom etc. At the end of the offer you should have saved a considerable amount of interest and have the opportunity to transfer the remaining balance on to another 0% card.

If you wanted a card with a BT facility @ 0%, why did you apply for the Sainsbury's card?

Yorkieds

Which card have you got?

Standard and Platinum offer 12 months 0% on purchases only.
Advantage Card offers 5 months 0% on purchases and transfers)

If you have the wrong card, keep it for spending for 12 months at 0%, then apply for a new 0% offer in 10 months time and apply now for another 0% offer for your balance transfers you would like to action now.

Alternatively ask Sainsbury's if they will change the type of card. You may be successful?

Joe_Bloggs

Written in response to TimL and Hugh_Justdare


If you don't do what TimL said you will be lumbered with a large debt at high interest (15-22%) when the 0% period expires. Using one of these cards effectively requires a lot of discipline/bookeeping  that most people do not have.
Sainsbury changed the nature of their 0% card in mid July. Before then it was a free money for nine months promotion including balance transfers.
J_B.
I'm so slow at writing that often a dozen posters get in before me and it seems that I am ignoring their valuable contributions.

Galstonian

0% purchase cards can:
- help if you have cashflow issues.
- allow you to earn interest on money you would otherwise have spent
- be useful if you want to build up a balance (for later transfer to a different 0% card)

But they can also:
- encourage you to spend more than you can afford
- allow you to forget to put aside the money you ultimately owe
- leave you with a large debt at the end of the offer

Make sure you understand the terms of the offer and ensure that you manage your finances to allow you take advantage of it.
The lenders only interest in giving you such a card is to encourage you to have a large debt upon which you need to pay them interest.


The cards in themselves are neither good or bad really - its how you use them that matters.

Hugh_Justdare

Thanks for your replies,the card is the standard 0% on purchases for 12 months,
I filled out the form for it mistakenly thinking it was for balance transfers and only saw my error when it was all done so applied anyway.
I can see that it is like buying say a washing machine etc and getting it interest free.
I don't think Sainsburys allow you to use it to put money into a high interest account, they charge a higher rate if you do.Though i don't see what they have got against you doing that,after all you would be building up a debt to them which is what they want.

Galstonian

But instead of paying your credit card bills over the introductory period you can take that money and pay it into a high interest account.

At the end of the period you can pay off your entire bill but will have earned interest on it.

If you spend £1000/month then you can earn over £200 (before tax) using this method.

System

It's a shame you didn't apply back in July - as said above it ended on 19th July (0% on balance transfers). I applied and just got in on the act - the paperwork was dated 23rd July but as I'd filled in the application online just before I still got it - my 0% must be one of the last to end on 23rd April 2005!

Whilst the credit limits have been hammered by many, Barclaycard is worth a look - 0% on purchases and BTs until next August. Just beware, it's hit and miss when it comes to the limits they give though.

If I think I can't trust myself with a credit card, then I contact the company and ask them to close the account (so the card itself cannot be used - obviously I still have to keep paying what I owe).

Whether this can be done with the Barclaycard 0% offer, or even the Sainsbury's 0% offer for those that got it on BTs, I don't know. A lot of people suggest methods of making the credit limit work for you by putting it in a high interest savings account - all I want to see is £0.00 on my statements, or as low a balance as I can possibly get.

I owed over £3000 last year on cards. That is now around £600. I am close to being able to pay that too, so it's always worth asking companies whether you can 'close' the account and still keep the offer if you have one (unless someone knows otherwise and the Terms and Conditions of cards don't allow it).

I understand purchases will be at 0%, but if you can't pay the balance off during the promotional period, it only helps slightly. I'd rather not spend at all.