Sainsbury’s launches double points credit card
Sainsbury’s Finance has launched a credit card which offers double Nectar points for two years. 
The Sainsbury’s Nectar Credit Card, one of two credit cards the retailer is launching along with the Sainsbury’s Credit Card, offers double points in store, online and at petrol stations.
The credit cards are both targeted at Sainsbury’s customers as only Nectar cardholders can sign up. Nectar certainly offers a potentially big target market or Sainsbury’s with 16.8 million people signed up for the scheme.
Stuart McKeggie, head of Sainsbury’s credit cards operation, said: “The credit card market has seen interest rates rise steadily. Our strategy is very much focused around encouraging more Sainsbury’s shoppers to take out our financial services products, and to do this we need to ensure that we continue to offer them exclusive deals that are extremely attractive.”
Sainsbury’s says its research indicates that around three million people are considering taking out a new credit card in 2010, equivalent to 7% of the UK’s adult population.
Rewards back in fashion
The rollout of the two cards is another indicator that rewards for card spending are back in fashion.
NatWest and RBS have both started offering the YourPoint World MasterCard rewards credit card to their current account customers. The card offers one point for every £1 spent on the card, with points redeemable as shopping vouchers or on travel, holidays, days out and wine.
In March Barclaycard launched its Freedom card, enabling eight million customers to earn up to £10 for every £1,000 spent at 30,000 participating retailers.
Commenting on the Sainsbury’s move Peter Harrison, credit card expert at moneysupermarket.com, said: “Over the last few years we have seen a decline in the number of reward products available and the value of rewards slashed by many providers, so any new developments in the market is good news for consumers.
“These two cards are good products at face value, and although you have to be a Nectar card customer to get them, you can pick up a Nectar card free in store and register online – this is not a difficult barrier to overcome. This move shows how the credit card market is becoming more niche – not only do you need a good credit rating, but providers are looking to give better offers to existing customers.”
He added that, when compared to the current best buys offerings, both products shape up pretty well in terms introductory periods, APR and benefits and will be especially attractive to anyone shopping at Sainsbury’s on a regular basis. Harrison sais the Nectar Credit card is not really a recommended card for lending.
The Sainsbury’s Credit Card, offers a market leading 0 per cent APR for the first 12 months on both purchases and balance transfers, and reverts to a standard rate of 15.9% on both purchases and balance transfers once the promotional period ends.
The Sainsbury’s Nectar Credit Card, doesn’t have any promotional periods although it does have a relatively low 12.9% APR for purchases and balance transfers. In addition for the first two years, card holders will get double Nectar points on their shopping when spending in Sainsbury’s stores and petrol stations as well as online.