John Lewis offers a credit card that is popular for its rewards and loyalty points. Like any credit card, understanding the different charges is crucial to avoid unexpected fees. This blog will explain the main charges associated with a John Lewis credit card, including interest rates, fees for late payments, foreign transactions, and how to avoid these charges.
Interest Charges
One of the most important charges to know about is interest. Interest is the extra money you pay when you don’t fully repay your credit card balance by the due date. For John Lewis credit cards, the interest rate can be high if you only pay the minimum amount each month. This is known as the Annual Percentage Rate (APR).
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Standard APR: John Lewis credit cards usually have a standard APR of around 18-22%, depending on your credit score and the card type.
How to Avoid Interest: To avoid interest, try to pay off your balance in full each month. If you only pay the minimum, interest will be charged on the remaining balance.
Late Payment Fees
Late payments happen when you don’t make at least the minimum payment by the due date. John Lewis credit card holders can face late payment fees if this happens.
Standard Late Fee: The late fee is usually around £12. If you miss multiple payments, this fee could add up and affect your credit score.
How to Avoid Late Fees: To avoid late fees, set up a direct debit or reminder to pay on time. Even paying the minimum payment can help you avoid these charges.
Foreign Transaction Fees
When you use your John Lewis credit card abroad or to make purchases in a different currency, you will usually be charged a foreign transaction fee. This fee is added to the total amount you spend abroad.
Foreign Transaction Fee: Typically, this fee is around 2.75% of the amount you spend. For example, if you spend £100 abroad, the fee would be £2.75.
How to Avoid Foreign Transaction Fees: If you travel frequently, consider using a travel-friendly card that doesn’t charge foreign transaction fees.
Cash Withdrawal Charges
Withdrawing cash using your John Lewis credit card is not free. In fact, it can be one of the most expensive ways to use your card.
Cash Advance Fee: The fee for withdrawing cash is usually around 3% of the amount you take out, with a minimum fee of £3. This means even a small withdrawal will incur a fee.
How to Avoid Cash Withdrawal Fees: Avoid using your credit card for cash withdrawals. Use your debit card or carry enough cash to avoid these fees.
Balance Transfer Fees
John Lewis offers balance transfer services, where you can transfer debt from another credit card to your John Lewis credit card. This can be helpful if they offer a lower interest rate, but there’s usually a fee involved.
Balance Transfer Fee: This fee is typically around 2-3% of the amount transferred. For example, if you transfer £1,000, the fee would be between £20 and £30.
How to Avoid High Balance Transfer Fees: Look for promotional offers where John Lewis may offer reduced fees for balance transfers, especially when you first apply for the card.
How to Reduce John Lewis Credit Card Charges
- Pay in Full: Always aim to pay your balance in full each month to avoid interest charges.
- Pay on Time: Set up reminders or direct debits to avoid late payment fees.
- Use Wisely Abroad: Avoid using your card for foreign purchases unless necessary, or consider a card with no foreign transaction fees.
- Avoid Cash Withdrawals: Always use your debit card for cash withdrawals to avoid high fees.
- Monitor Statements: Regularly check your credit card statements to spot any charges and ensure you are not being overcharged.
FAQs: John Lewis Credit Card Charges
Q. What is the standard APR for a John Lewis credit card?
A. The standard APR is usually between 18% and 22%, depending on your credit score.
Q. How much is the late payment fee?
A. The late payment fee is typically around £12.
Q. Is there a fee for using my John Lewis credit card abroad?
A. Yes, the foreign transaction fee is about 2.75% of the amount you spend.
Conclusion: John Lewis Credit Card Charges
In conclusion, being aware of the various charges on your John Lewis credit card can help you avoid unnecessary fees. By paying on time, avoiding cash withdrawals, and being cautious when using your card abroad, you can manage your card efficiently and enjoy the benefits without the extra costs. Always review your credit card terms and stay updated on any changes to fees or charges.
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