SAINSBURY'S Bank has launched a new credit card where customers don't have to pay interest on purchases for up to 29 months – the longest period currently available.

Customers who take out a card will also get the chance to earn up to £37.50 worth of bonus Nectar points.

A 0 per cent credit card is pretty much what it says on the tin – you won't have to pay any interest on purchases for a given period of time, as long as you make the minimum repayments.

Used correctly, a purchase credit card can help you spread the cost of a big-ticket item – like a new kitchen or holiday – without racking up hefty interest charges and can be cheaper than a loan.

The longest deals on the market have previously stretched to 31 months but as it stands, the 29 month offer from Sainsbury's is the best one available.

Of course, only customers who pass the credit checks with the highest scores will be offered the best rates so you might not be offered the same term.

What are the best 0 per cent credits?

THESE are the 0 per cent credit cards with the longest terms currently available:

• Sainsbury's Bank, 0 per cent interest for 29 months, 19.9 per cent variable APR after
• Post Office, 0 per cent interest for 28 months, 18.9 per cent variable APR after
• Tesco Bank, 0 per cent interest up to 28 months, 19.9 per cent variable APR after
• MNBA, 0 per cent interest up to 28 months, 19.9 per cent variable APR after
• Barclaycard, 0 per cent interest up to 27 months, 19.9 per cent APR after
• Halifax, 0 per cent interest up to Halifax, 19.9 per cent APR after
• HSBC, 0 per cent interest for 26 months, 22 per cent variable APR after

Remember, the best rates will only be offered to customers who score highly in credit checks.

Shockingly, credit card providers only have to offer the advertised rate to 51 per cent of customers which means that only just over half of applicants will get the best rate.

A rejection can affect your credit score so it's worth checking if you're likely to be accepted with an eligibility tool.

As well as more than a two year interest free period, credit card holders can earn up to 7,500 bonus Nectar points in the first two months of using it.

This is on top of the two points earned per £1 spent on Sainsbury's shopping and fuel.

You'll be awarded with 750 bonus points every time you spend £35 or more at Sainsbury's, worth £3.75.

The bonus points are limited to 10 transactions and work in store and online.

If you're worried that you won't be able to make the maximum number of transactions to make the most of the offer, you can split you can split your shopping so that you pay in £35 chunks.

But don't use collecting the bonus points as a reason to spend any more money that you need to or than you can afford.

Customers can also collect the loyalty points on purchases made with their credit card at any retailer – one point for every £5 spent.

Purchase credit cards: What you need to know

PURCHASE cards can be a great way of spreading the cost of expensive items. But you’ve got to use them properly otherwise it could cost you.

Here are some tips from MoneySavingExpert on what you need to know:

Never miss a payment – Being in a 0 per cent period doesn't mean you don't have to make your monthly repayments. If you miss just one payment you'll lose your 0 per cent period all together and start being charged interest on your balance.

Clear you balance – If you don't clear your balance within the 0 per cent period, you'll start being charge interest. Work out how much you need to pay each month by dividing your balance by the number of months you 0 per cent period is and set up a direct debit for that amount.

You might not get the headline 0 per cent period – Only those with the very best credit histories will get accepted for the cards that have lengthy 0 per cent periods, and some providers could offer you a deal with a shorter period instead. Check the details of the card you're looking at to see what you might be offered below the headline offer.

The deal also offers balance transfers at 0 per cent for 29 months but at 3 per cent which is pretty high.

That means if you transferred £1,000 then you would be charged £30 – compared to 1.35 per cent offered by Barclaycard on a 35 month balance transfer card which would cost £13.50.

Make sure that you pay the minimum monthly repayments and that the debt is cleared before the end of the interest-free term or you'll be charged a whopping 19.9 per cent.

That means that if you had £1,000 on the card and were paying £100 off a month over 11 months, it would cost you £94 in interest once you've paid it all off.

Rachel Springall from Moneyfacts said: "The new interest-free purchase offer from Sainsbury’s Bank will be highly attractive to customers looking to spread the cost of a purchase over two years and is the longest deal currently available on the market.

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"As with any card, borrowers must be sure to keep up with repayments and pay back any debt before interest applies."

Earlier this year, Sainsbury's offered a credit card that had a 31-month interest free period.

If you're looking for a balance transfer card, then you should check out our guide to the ones with the best rates.

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