Credit Card

Rates and fees increased on John Lewis and Waitrose credit cards


John Lewis and Waitrose "Partnership Card" holders face higher interest rates and a balance transfer fees from October.

Currently customers pay 16.9pc interest on purchases and balance transfer, but from October 21 the rate is increasing to 18.9pc. Those with £2,500 outstanding pay around £422 at the current interest rate, but after the increase this will rise to £472.

John Lewis is also raising the balance transfer fee from 2.5pc to 2.9pc subject to a minimum payment of £5.

The points system is not changing. Customers will still earn one point for every £1 spent in John Lewis and Waitrose and one point for every £2 spent elsewhere.

You can opt out of the interest rate increase but must do so before October 20 and pay off your remaining balance at the current rate. You’ll need to call 0345 300 3833 or write to John Lewis Financial Services Limited, Partnership Card, PO Box 5137, Coventry, CV3 9EP.

If you change your mind after opting out you will have to wait six months before you can reapply for the Partnership Card.

John Lewis said it had to increase the interest rates to maintain a "sustainable credit card" after 10 years of no rate rises.

A spokesman said all existing customers will receive a letter, giving them 60 days’ notice about the changes. The changes will impact all Partnership card customers although John Lewis refused to say how many there are.

If you are a John Lewis or Waitrose customer the points earned with the Partnership Card may be enough to convince you to stick with it, despite the interest rate rise.

For those looking to pay 0pc on a balance transfer for as long as possible plus receive points, Sainsbury’s offers 39 months at zero interest. No interest will be charged on purchases for three months. After that the rate reverts to 18.9pc.

  • *Reader Service: Compare credit cards with The Telegraph Money Comparison Service

You can earn two Nectar points per £1 spent in Sainsbury’s on shopping and fuel, and one point for every £5 spent elsewhere. The Sainsbury’s card also offers offers new customers 1,000 bonus Nectar points every time you spend £35 in store. The offers ends December 28.

There’s a 2.39pc fee for balance transfers made within the first three months.

There are also a number of cashback credit cards – although many of these rewards are being cut. Top cards include the American Express Everyday Platinum Card and offerings from Santander and Asda. We’ve explained more about them here.

* Starred links are provided by a Telegraph commercial partner. All editorial content is entirely independent of these relationships


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