Sainsbury's looks to shake up the UK credit card market

Sainsbury's Finance have launched a new product in the UK credit card market which the company claims is the first of its kind. The company's Gold Credit Card has been designed to offer an array of benefits, reduced charges and discounted interest rates. So what can you expect from your new Sainsbury's Gold Credit Card?

The credit card itself comes with free family travel insurance for up to two adults and six children which is valued at around £250 year. There are no fees on foreign currency exchanges and cash withdrawals are interest-free provided the balance is repaid in full. While the card will attract a monthly charge of £5 and an interest rate of just 9.94%, against the average at the moment of 17.32%, there would appear on the surface to be many benefits for Sainsbury's Finance customers.

However, as with any credit card and financial instrument which have various benefits attached, these benefits are only worthwhile if you use them. It is important not to be blinded by the headlines and the benefits on offer because ultimately if you do not make use of free travel insurance, balance transfers and the company's foreign currency exchange service, then what are you left with?