Credit card hike from another provider

John Lewis, the UK department store, has recently announced that as of November some of the rates, fees, and charges on its Partnership credit card are due to rise, and this means that cardholders will have to cope with increase repayment, which will put further strain on already overstretched household finances.

Household budgets have been affected over recent months by higher borrowing costs, increased petrol prices, soaring food costs, and rising energy and other household bills. A number of credit card providers have also been hiking up their rates, affecting affordability for borrowers.

Reports show that the balance transfer fee charged on the John Lewis card is to rise from 2% of the total amount being transferred to 2.5%. Another fee that is set to go up is the cash withdrawal fee, which is set to rise from 1.75% to 2.5%, making it more expensive to take out cash on the card.

One industry professional recently stated: ‘A lot of people pay off their credit cards every month and so earn little for lenders. Some of these people are seeing their limits cut or their accounts closed. Otherwise, card firms are raising rates and applying higher fees to make up for lost revenues elsewhere.’