Sainsbury's investigates length of interest free periods on credit cards

June 21, 2006

Sainsbury's Bank has undertaken research into the various lengths of interest-free periods offered on current credit cards on the market.

It finds that there are currently only six cards available which offer zero per cent APR on purchases for ten months or more – two of which are Sainsbury's cards.

According to the bank, Moneyfacts figures show that its Standard and Platinum cards are the only products currently offering zero per cent on purchases for ten months or more, a "low lifetime rate" on balance transfers and in-store purchase discounts.

There is a large degree of variation in the lengths of interest-free periods offered by providers, according to Sainsbury's, which points out that some offers can be as short as three months.

At present, there are 66 credit cards on the market offering zero per cent periods, with the average length offered around six and a half months.

"There is a huge choice of cards offering interest-free periods on purchases, but the length of these varies a great deal," said Donald Macleod, manager of credit cards at Sainsbury's Bank.

"By offering some of the longest periods available, we are giving our customers greater flexibility in how they manage their purchases, enabling them to spread the cost of larger items such as holidays or furniture for the home."

Another piece of advice that Sainsbury's issues to customers is to be wary of charges, as four out of ten cards currently accepting balance transfers charge a fee of three per cent of the sum handled.