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Credit Cards & Loans

Sainsbury’s Bank drops self-employed borrower ban

John Fitzsimons
Written By:
John Fitzsimons

Sainsbury’s Bank has resumed offering credit cards to self-employed borrowers.

Last year Sainsbury’s introduced a ban on lending to self-employed borrowers through either credit cards or personal loans, a move which it blamed on the uncertainty sparked by the pandemic.

In November last year it resumed lending to self-employed borrowers looking for a personal loan of up to £25,000.

It has now gone one step further by resuming offering credit cards to borrowers who work for themselves.

A spokesperson for the bank said: “We reopened applications for our range of credit cards for self-employed customers from 25th February 2021. As usual, credit checks will apply.”

Are the cards any good?

Sainsbury’s Bank offers a host of credit cards that may be worth considering.

For example if you have existing credit card debt and want to spread the payments, then it offers a balance transfer card with an interest-free period of 29 months. That’s the longest 0% balance transfer period on the market, though it’s worth remembering that you will have to pay a transfer fee of either 3% or 4% (depending on your circumstances) of the fee being transferred.

Other cards offer shorter 0% periods, but charge smaller transfer fees, so ultimately the right card for you will come down to how long you need in order to clear that balance before interest starts being charged again.

Another card worth noting is the Dual Offer credit card, which boasts a 20-month 0% period on purchases, the joint longest in the market. It also offers the same interest-free period on balance transfers, with a 3% transfer fee.

Getting something back when you spend

Alongside its competitive 0% terms, an added bonus of the Sainsbury’s Bank cards is the fact that you can earn Nectar points on your spending. 

Cardholders earn up to three points for every £1 spent at Sainsbury’s, Argos and Tu Clothing, and one point for every £5 spent elsewhere.

Some cards offer additional points rewards too. The Nectar credit card for example hands cardholders 10,000 bonus points when the card is used to spend a total of £400 at Sainsbury’s, Argos or Tu in the first two months after the account is opened.