Over recent months reports have highlighted how a number of credit card providers in the UK have hiked up their headline credit card rates, as well as various fees and charges that are associated with the credit card, leaving borrowers to pay more for their borrowing at a time when household budgets are already overstretched due to increased borrowing costs, higher food prices, soaring living costs, and rocketing bills. One report has indicated that John Lewis, which offers the Partnership credit card, has now followed suit by hiking up a range of costs on its credit card.

There have been a number of fee and charge hikes on the credit card from John Lewis according to recent figures. Those that decide to transfer existing credit card balances onto the card will now be hit with a 2.5% balance transfer fee instead of the lower 2% fee. John Lewis has also increased the charges for withdrawing cash on the Partnership card, taking this from 1.75% to 2.5%.

Another piece of disappointing news for cardholders is that as of November the way that monthly repayments are allocated will also be changed. At present the repayments go towards paying off cash withdrawal balance first, which is good because they are the ones that accrue the highest interest. However, from November it will be purchase balances that are paid off first, and this means that cash withdrawal balanced will be left to continue accruing interest.

A number of credit card providers have hiked up their various fees and charges over the past year, causing increased financial difficulties for many customers.

One industry professional recently said: ‘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.’