Customers with a Tesco or John Lewis partnership credit card may want to compare their credit cards’ interest rates with others on the market from February, as both companies are to increase interest rates on their cards for existing customers.
The Tesco Platinum Finest card sees an increase from 14.8 per cent to 15.75 per cent on purchases and an increase from 15.9 per cent to 16.89 per cent on balance transfers.
John Lewis and Waitrose’s Partnership card sees a similar increase from 14 per cent to 15.5 per cent on purchases and balance transfers.
Andrew Hagger, from Moneyfacts.co.uk, said: “This is another sign that card companies are suffering at the hands of the rate tarts and more recently an increase in those now unable to repay their borrowing.”
Rate tarts are people who switch from credit card to credit card, taking advantage of zero per cent interest rate offers and then transferring their balance to a new card when the offer expires.
Mr Hagger continued: “The upshot is that the ‘financial heartache’ that these two distinct customer groups are causing the card companies is being passed on to those who are perhaps the most loyal customers, and who manage their accounts within their agreed limits.
“These are the people who will repay more than their minimum balance, but perhaps not always the full balance and hence are the ones bearing the brunt of other customers’ actions in the form of increased interest payments.”
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