JOHN Lewis will make a major change to it’s loyalty scheme and it will cost customers more.
Partnership credit card holders will see their perks slashed when they shop with other retailers.
Customers with the card earn points on purchases which they can convert into gift vouchers to spend in John Lewis and its sister brand Waitrose.
Each point coverts into 1p.
Currently customers earn a point for every £4 they spend at other stores.
However come August that is set to change, with the amount increasing to £10.
It means customers will have to spend more money at other stores to receive vouchers or wait a longer time to see their rewards build up.
The rewards for spending at John Lewis and Waitrose stores will remain unchanged at five points for every £4 spent.
Customers also get a £5 voucher for every 500 points they earn.
John Lewis Money spokesperson said: “Our rewards are being updated to help maintain our market-leading reward for spending at John Lewis and Waitrose, where customers earn 1.25% back on every pound spent.
“Spending on purchases made elsewhere will earn 0.1% from 1st August.”
It is not the first time the retailer has lowered rewards for spending elsewhere.
In 2020, the retailer reduced the amount customers of points customers earn from purchases made at other stores from one point for £2 spent to £4.
But it is not all bad news for card holders, with the retailer announcing bigger rewards for loyal customers.
For the next three years, shoppers will earn triple points when shopping in John Lewis stores and double points when shopping online.
The spokesperson added: These changes enable us to invest in the rewards that are most valued by our customers – alongside a new bonus to help customers earn additional points throughout August.”
PARTNERSHIP CREDIT CARD
John Lewis’s credit card lets customers earn points on money they spend in stores and other retailers.
Customers can also get certain perks such as discounted cinema tickets.
If you are interested in signing up you will need to undergo a credit check.
But it is important to check the Annual Percentage Rate (APR) on any credit card before you sign up.
This is amount of interest you will be charged, if you do not pay off your credit card in full every month.
John Lewis charges customers 28.9% APR on its Partnership card.
Credit card need-to-knows
Not using a credit card effectively can wreak havoc on your finances and your credit score.
If you don’t keep up with repayments or default on your debt, you are likely to get a black mark on your credit record, which could affect your ability to get a credit card, loan or mortgage in the future.
It’s important not to let yourself get sucked into overspending.
You should always clear the full balance as soon as possible.
If you have a poor credit score, don’t bank on being approved for a card or getting the 0% deal you’d hoped for.
Card providers only have to give the advertised rate to 51% of applicants, so you could end up paying more interest than you bargained for.
If you’ve got a poor credit record, you’re less likely to get the best rates.
And if you are looking for a new credit card, don’t apply for lots at once.
After your 0% period is up, lenders can charge upwards of 40% interest, so if you have not repaid the debt fully by then, try to move the debt onto another 0% deal.
