Sainsbury's is splitting its existing credit card offer, with two new cards connected to its Nectar loyalty scheme.

The new Nectar credit card offers double points on shopping, including fuel and online purchases, to Nectar cardholders for two years. The card’s interest rate is 12.9%.

The revamped Sainsbury's credit card, meanwhile, will offer 0% interest for the first 12 months on purchases and balance transfers. Only Nectar cardholders can apply, but earn no points for purchases.

The move comes after research by Sainsbury's Finance found consumers split over whether they prioritised rewards or credit.

“Last year we decided to split our existing credit card to cater for the two very different customer populations we have identified within Sainsbury’s: those that need the credit card for borrowing and those that are just in it for the added extras,” said Sainsbury’s credit card chief Stuart McKeggie.

“Having identified how we can make our financial services distinct and different from the rest of the market we’ll be looking to develop it further with other innovations throughout the year,” he added.

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