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Supermarket credit cards from Tesco and Sainsbury's

Macro shot of red credit cardA supermarket credit card could reward you for your weekly shop. Here we look at offerings from two retail giants, Tesco and Sainsbury’s.

If you regularly shop at the same supermarket, a credit card from that retailer might be worth considering.

Tesco offers two options at the moment, a credit card for purchases and a credit card for balance transfers.

For purchases

Tesco’s credit card for purchases offers a 16-month interest-free period on purchases, wherever they are made.

Customers can also earn extra loyalty points at a rate of one Clubcard point for every £4 spent on this card.

When shopping in Tesco stores or on Tesco fuel, this jumps to five points for every £4.

The credit card also doubles as a normal Clubcard, allowing card holders to collect points on top of this special offer.

A good option

Nerys Lewis, head of credit cards at Confused.com, says: "If you’re in the market for a supermarket credit card, it’s best to pick one that rewards you for what you’re already spending on.

"So for regular Tesco customers this could be a good option.

"Typically, traditional reward cards won’t offer you interest-free deals for more than a couple of months at most.

"So with a Tesco credit card, customers are getting a solid loyalty card with an added bonus."

For balance transfers

The Tesco credit card for purchases has the extra benefit of nine months interest-free on balance transfers.

When transferring a debt from another card, a 2.9 per cent fee applies.

If nine months seems too short a period to pay back your debt, Tesco’s credit card for balance transfers may be a better option.

This offers the longer interest-free period of 18 months, but comes with a higher transfer fee of 3.95 per cent.

Sainsbury’s credit card

Sainsbury's Nectar credit card comes with a range of introductory offers too, including a six-month interest-free purchases period.

Also, for the first two years, card holders can earn double Nectar points for every £1 spent on the card at Sainsbury’s.

You can also earn one Nectar point for every £5 spent on your card elsewhere.

The Nectar card includes a competitive balance transfer deal too - 0 per cent interest for the first 15 months. A 3 per cent balance transfer fee applies.

Regular customers

Other credit card deals from Sainsbury’s include the Sainsbury’s credit card which has a 12-month interest-free purchases period.

The card offers 12 months interest-free on balance transfers too. A 3 per cent transfer fee applies.

These two Sainsbury’s cards are only available to existing Nectar card holders, so they really are aimed at the regular customer.

And remember, you can avoid interest charges even after the interest-free period has ended by simply paying off your debt in full every month.

A good all-rounder

Lewis believes a credit card from a supermarket such as Tesco or Sainsbury’s can be a good all-rounder and help you pick up points as a reward for your loyalty.

She says: "If you’re simply looking to transfer a large balance, or earn rewards for shopping at different outlets, you may be better off with one of the leading balance transfer credit cards or a traditional reward card.

"However, if you do regularly shop at one particular supermarket, they can really be worth it as you’re rewarded for what you would be spending on anyway."

Most major supermarkets offer their own credit cards, including Asda, M&S and John Lewis & Waitrose.

You can compare balance transfer credit cards and rewards cards on Confused.com.

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Adam Jolley

Adam Jolley

Adam Jolley is a writer at Confused.com, focusing on credit cards and other financial products. Wannabe mountaineer Adam joined us from the world of financial services PR.

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