2.5m people to switch credit cards as interest free periods end

New research from Sainsbury's Finance reveals that 1.9 million people are planning to take out new credit cards over the next 12 months because the interest free period on their balance transfers has expired.  A further 867,000 people intend to do this because the same has happened on their purchases.

Analysis of industry data by Sainsbury's Credit Cards reveals that the typical balance transfer APR on cards offering interest free periods rises to 18.2% APR once these expire.  Similarly, the average typical interest rate for cards offering an introductory 0% interest rate on purchases is 18.0% APR.

The Sainsbury's Credit Card offers Sainsbury's shoppers with a Nectar card 0% APR for the first 12 months on all their shopping and balance transfers (3% BT fee).  The card has a typical APR Representative of 16.9% on purchases once the interest free period expires.

Stuart McKeggie, Head of Sainsbury's Credit Cards said:  "In total 7.9 million people told us they plan to take out a new credit card between October and September 2012, and 32% of these said it is because of their interest free periods ending on their existing cards.  This is still clearly the main reason for taking out a new card, and for those that want to spread their costs, it can be a sensible financial planning option.

"Our Sainsbury's Credit Card offers a very attractive interest free period on both balance transfers and purchases."

In terms of where most of the new credit cards being taken out over the next 12 months as a result of interest free periods ending, half of those taking out a new card in the North East (49%) will do so because of this, 35% of those taking out a new card in the East Midlands will do so, and 40% of those in the South East.

To find out more about the Sainsbury's Nectar Credit Card, visit sainsburysbank.co.uk.