How do Credit Cards work?
A credit card lets you do day to day spending and borrow money to buy large, unexpected, or emergency purchases. The card you choose will have a pre-agreed limit on how much you can spend.
You receive a monthly bill or statement for the amount that you’ve spent over that period, plus any outstanding balance. This will outline what you need to pay back that you’ve borrowed – plus the interest rate of your card, which is also pre-agreed.
Your monthly statement includes:
- The amount you’ve spent.
- Any extra charges or interest added to your account.
- The total you need to repay.
- What payments you must make and how to make them.
- How to contact your provider.
- Your minimum payment.
There’s a minimum amount that must be paid back each month, which changes, depending on the current outstanding balance of your card. If you’re in a position to do so, you should always try to pay off the full balance if you can. This will mean you will not be charged interest.
The minimum payback per month can be as little as 1% of the remaining balance you need to repay, depending on your lender, plus charges and an annual fee (if applicable). It could be a set amount, like £5 or a percentage range – for example 3 to 5%.
Why apply for a Sainsbury’s Bank Credit Card?
- Nectar Member Rewards – earn Nectar points when you spend on your Sainsbury’s Bank Credit Card including at Sainsbury’s, Argos, Habitat and TU Clothing.
- Sainsbury’s Bank Credit Card App – manage your card on the go with the Sainsbury’s Bank Credit Card app – available on the App Store or Google Play.
- Add cards to your digital wallet – if you use Apple Wallet or Google Pay, you can add your card to your Digital Wallet, ready to spend when you need to.
- Save time with our credit card eligibility checker – answer a few easy questions to see how likely you are to be accepted for a credit card with us.
Worldwide use – use your Sainsbury’s Bank Credit Card at more than 35.5 million places globally, wherever you see the Mastercard, Visa or Maestro/Cirrus sign (this varies based on your card).
How to pick the right credit card for you
We have several credit cards to choose from. Picking the right one will depend on what you need it for, so here are a few things to consider.
What are you planning to spend the money on?
Whether you want to buy things online, use your credit card abroad or transfer any existing credit card debts, this will impact the type of card you choose.
- Big purchases – if you’re thinking about getting a card to finance a big spend, a card with 0% interest on purchases for a specified time frame could be a good choice for you.
- Paying off other credit card debt – if you’re planning to use your card to help pay off an existing credit card debt, a card with 0% interest on balance transfers could be right for you.
If you would like to discuss your options with us before applying, contact us to talk through your financial situation.
How will you repay your credit card debt?
Your credit card interest rate will play a big part in deciding which card is right for you.
If you’re paying off larger purchases over many months, having an interest-free period on a credit card could make payments less expensive.
However, if you’ve done your budgeting and are confident that you can pay off your balance in full and on time each month, a card’s interest rate may not be a priority for you. Instead, you could choose your card based on different incentives, such as rewards earned.