Sainsbury's 0% on purchases for 31 months (newb question)

manwithoutaplan

Hi,

I've been accepted for this card and want to check I understand it correctly.

Each month in which you have a balance outstanding on your account you must pay the greater of:

an amount equal to the total of any Credit Card Repayments Cover Premiums, interest, default sums, plus 1% of the balance shown on your statement.

2.25% of the balance shown on your statement or:

£5, or the full balance if less than £5, plus any amount you owe that is more than your credit limit

I was after something that I could pay monthly on for purchases up to the £1500 limit without incurring any interest within the 31 month period - i.e. if I spent the full £1500 on day one I'd need to pay approx £48 a month for the interest free period to avoid any interest.

Have I got this right or wrong? :rotfl:

https://www.sainsburysbank.co.uk/credit_cards/micro/cca_creditcards_zone_search#tab--purchase-credit-cards-

Many thanks!

molerat

You could pay the minimum of 2.25%, starting at £33.75 and reducing, and put any extra elsewhere earning interest but yes, paying around £50 per month will clear it in 30 months. Note the promotion ends on the anniversary of the start date (the day you were accepted and probably a couple of weeks before you get the card) and not the date of purchase or statement date.

manwithoutaplan

Ahh, so I could pay the minimum £33.75(reducing) and just make sure I pay anything remaining before the 31 month period is up to avoid interest?

Many thanks!

Ben8282

manwithoutaplan wrote: »

Ahh, so I could pay the minimum £33.75(reducing) and just make sure I pay anything remaining before the 31 month period is up to avoid interest?

Many thanks!

Yes you could although that is not quite the way I would recommend going about things. Credit card issuers like to see turnover on their cards. With a balance transfer card that is difficult, but with a purchases card I think you would be better off and more likely to get the very low credit limit increased, if rather than spending up to the limit and then making the minimum payment for 31 months, you were to stooze say £500 and use/repay another £500 of purchases every month (which will cover the minimum payment), leaving the other £500 unused as you really don't want 100% utilisation. Don't forget also that most people get these cards in order to actually continue to use the card for the nectar points.