What is a balance and money transfer?
Why use a balance transfer?
A balance transfer is where part or all of a debt you owe is transferred from one credit card to another, usually to a card with a lower interest rate. You might consider a balance transfer in order to:
Save money on interest
Some credit card providers charge more interest than others. If you qualify for a lower interest rate than your current card issuer charges, transferring your balance could help you to save money on interest over time. If your new credit card has an introductory rate, once this expires the credit card company will begin charging you the standard rate you qualified for. Provided your interest rate is lower after transferring your balance, and it’s worth paying the transfer fee, you could save money on your purchases by paying less interest.
Manage your finances
A balance transfer can help to have your credit card balances all in one place leaving you with one monthly payment to make, which could help you budget.
Limits and fees for balance transfers
The amount you can transfer depends on how much of your agreed credit limit is available. It is important to note that there is a fee for balance transfers. Transfer fee amounts are often a percentage of the total balance transferred. For example, if you choose to transfer £100 and the charge is 3%, you will be charged £3.
At the end of any promotional period the interest rate will usually jump to the standard rate for balance transfers, so if you haven’t paid off the transferred balance in full by then you will start paying interest on the outstanding balance. Your repayments may not go towards paying off the balances transferred if you have made other types of transactions on the account.
As with any financial decision, you should do some research and make sure a balance transfer is the right move for your circumstances. Our guide to how credit cards work could be helpful should you require more information.
Why use a money transfer?
A money transfer lets you move credit from your Sainsbury’s Bank Credit Card into your UK current account when you need cash.
You might consider a money transfer in order to:
Pay an urgent bill
A money transfer is when you transfer funds from your Sainsbury's Bank Credit Card directly to a bank account. This can be useful when you need cash in the bank for things like home improvements or an unexpected or urgent bill.
There's a fee for each transfer, but it can be a way to access your credit on your credit card when only cash will do. As well as interest, money transfer fees will apply. Fees are usually a small percentage of the transferred amount. The interest rate charged on your money transfer is usually higher than the standard APR that you may be used to. We'll let you know what your fee and interest rate will be when you apply to make a money transfer.
Remember, you can only send money to current accounts that are in your own name and registered at your current address. A money transfer is subject to approval.