If you are a regular shopper at John Lewis or Waitrose, chances are you’ve heard of the John Lewis Partnership Credit Card. Like any credit card, it comes with features, benefits, and a set of charges that every cardholder should understand clearly.
Understanding the John Lewis Credit Card
The John Lewis credit card is powered by NewDay Ltd, a well-known credit provider in the UK. It is a rewards card designed for John Lewis and Waitrose shoppers.
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Every time you spend, you collect points that can later be redeemed for vouchers.
While the rewards system sounds attractive, the charges can quickly add up if you’re not careful. This is why understanding the different types of fees and interest rates is important before relying heavily on the card.
Types of John Lewis Credit Card Charges
Credit card charges usually fall into several categories. The John Lewis credit card is no different. Below is a breakdown of the key charges you should know:
1. Interest Charges
Interest is one of the most common costs associated with using a credit card. The John Lewis card applies interest if you do not pay your full balance on time.
- Purchase APR: Around 21.9% variable (may differ depending on your circumstances)
- Cash withdrawal APR: Often higher than purchase rates
- Balance transfer APR: Can vary based on promotional offers
To avoid interest altogether, make sure to pay off your balance in full by the due date.
2. Late Payment Fees
If you miss your minimum monthly payment, a late payment fee will be applied. This can also negatively affect your credit score. Typical late fees are around £12 per missed payment.
3. Overlimit Fees
Spending more than your credit limit may trigger an overlimit fee. Again, this is usually about £12 and can hurt your credit profile.
4. Cash Withdrawal Charges
Using your John Lewis credit card to withdraw cash from an ATM is considered a cash advance.
This type of transaction comes with multiple costs:
- A cash withdrawal fee (usually a percentage of the amount withdrawn)
- Higher interest rates compared to normal purchases
- Interest applied immediately, with no interest-free period
For these reasons, withdrawing cash on a credit card is best avoided.
5. Foreign Transaction Fees
If you use your John Lewis credit card abroad, you may incur foreign transaction charges. Typically, these fees are around 2.75% to 3% of the transaction value. Some ATMs abroad may also add an extra local fee.
This means that using this card for overseas travel can be costly compared to travel-friendly credit cards.
6. Balance Transfer Fees
If you move balances from another credit card, John Lewis may apply a balance transfer fee.
This is usually a percentage of the transferred amount. While promotional offers sometimes reduce these fees, it’s important to check before applying.
7. Returned Payment Fees
If your payment fails due to insufficient funds or bank rejection, a returned payment fee may be charged. Like late payment fees, this is usually around £12.
A Quick Look at Charges
Here’s a simplified table to summarise the common John Lewis credit card charges:
| Type of Charge | Typical Cost |
|---|---|
| Purchase APR | ~21.9% variable |
| Late Payment Fee | £12 |
| Overlimit Fee | £12 |
| Cash Withdrawal Fee | % of withdrawal + higher APR |
| Foreign Transaction Fee | 2.75% – 3% |
| Balance Transfer Fee | % of transfer |
| Returned Payment Fee | £12 |
How to Avoid or Reduce John Lewis Credit Card Charges
While charges are a part of most credit cards, there are ways to reduce or even avoid them with careful usage.
1. Always Pay on Time
Setting up a direct debit for at least the minimum payment helps you avoid late payment fees. Paying in full every month avoids interest entirely.
2. Stay Within Your Limit
Know your credit limit and track your spending. Many banking apps, including John Lewis’s, let you monitor your balance in real time.
3. Avoid Cash Withdrawals
Cash advances are one of the most expensive ways to use a credit card. Use a debit card instead for cash needs.
4. Be Careful Abroad
If you travel often, consider getting a travel-friendly credit card with zero foreign transaction fees. Use the John Lewis card mainly for UK shopping to maximize its rewards.
5. Check Balance Transfer Offers
If you want to consolidate debt, look for promotional balance transfer offers with low or 0% fees before transferring.
6. Keep a Cushion in Your Account
If you pay manually, ensure enough funds are in your account to avoid returned payment fees.
Benefits That Balance the Charges
Despite the fees, the John Lewis credit card has benefits that many shoppers find useful:
- Reward Points: Earn points on every John Lewis and Waitrose purchase, redeemable as vouchers.
- Exclusive Offers: Access to special shopping promotions and events.
- Digital Management: Track spending and manage payments via the app.
For regular shoppers, these perks can outweigh the costs if the card is used responsibly.
Who Should Use the John Lewis Credit Card?
This card is best for:
- People who shop often at John Lewis and Waitrose
- Customers disciplined enough to pay balances in full monthly
- Shoppers who want to earn rewards on their everyday purchases
It may not be suitable for:
- Frequent travelers (due to high foreign fees)
- People who often withdraw cash on credit cards
- Anyone who struggles with making timely payments
FAQs: John Lewis Credit Card Charges
Q. Do I get charged for paying off my John Lewis credit card early?
A. No, there are no fees for paying off your credit card balance early. In fact, paying in full helps you avoid interest.
Q. Can I use my John Lewis credit card abroad?
A. Yes, you can use it worldwide where Mastercard is accepted. However, a foreign transaction fee of around 2.75% to 3% applies.
Q. What happens if I miss a John Lewis credit card payment?
A. You’ll be charged a late payment fee, usually £12, and it may impact your credit score. Interest will also continue to build on your outstanding balance.
Conclusion
The John Lewis credit card can be a rewarding option for loyal John Lewis and Waitrose customers, but only if managed carefully. The key to making the most of it lies in understanding the charges and avoiding unnecessary fees.
Always pay your balance on time, stay within your credit limit, and avoid using it for cash withdrawals or overseas purchases unless absolutely necessary.
Disclaimer: This blog is for informational purposes only. Credit card terms, charges, and rates may change over time. Please check the official John Lewis Partnership Credit Card website or your card agreement for the most accurate and up-to-date details.
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