8.6 million credit card holders plan to switch to a 0% interest card in the first half of the year

Around 8.6 million savvy spenders could switch credit card providers in the first six months of the year to take advantage of a card charging no interest, according to research from Sainsbury’s Bank Credit Cards. This is equivalent to one in four (25%) of card holders who plan to transfer all or some of their outstanding balance to a new card.

The research suggests around £21.5 billion could be transferred. On average, those seeking balance transfers expect to switch £2,500 to a new card, and 12% of ‘switchers’ intend to transfer more than £5,000. Switching balances to a 0% interest balance transfer card can dramatically reduce the interest paid.

Simon Ranson, Head of Banking at Sainsbury's Bank said: “Our research shows a significant proportion of people are reviewing or intend to review their credit cards. This can be a worthwhile exercise, as many people could end up paying less or no interest on outstanding balances.” 

The Sainsbury’s Nectar Balance Transfer Credit Card offers no interest on balance transfers for 33 months, the longest interest free period ever offered by the Bank. For those looking to pay off any transferred credit more quickly, the Bank offers the Sainsbury's Nectar Low Balance Transfer Fee Credit Card which has a low balance transfer fee of just 0.5% for the first three months. Thereafter, a 3% fee applies. The card also offers customers 12 months to pay off their balance at 0% interest.

To keep the promotional rate customers must pay at least the minimum payment by the due date and stay within their credit limit.

Both cards also offer Nectar points every time customers use the card when shopping at Sainsbury’s and using their Nectar loyalty card at the same time. Points are also earned when making purchases at any other outlet, both in the UK and abroad.

For information on Sainsbury's Bank credit cards log onto sainsburysbank.co.uk/cards.