John Lewis will be relaunching its reward credit card this summer with New Day.
The Partnership Credit Card was launched in 2004 and allows you to earn points every time you shop at Waitrose and John Lewis, which can be exchanged for vouchers.
From 9 May John Lewis will no longer be accepting new applications for its card until the summer when the card is relaunched.
Here, Which? explains what this means for new and existing customers and how the John Lewis credit card compares to others on the market.
The John Lewis Partnership Credit Card is currently powered by HSBC and allows you to earn five points for every £4 spent at John Lewis or Waitrose or one point for every £4 spent elsewhere.
For every 500 points you earn, you receive a £5 John Lewis or Waitrose voucher. According to John Lewis, £230m has been issued in customer vouchers in the last five years.
The card has no annual fee and also offers interest-free spending for nine months plus 18 months 0% on balance transfers (with a 2.9% balance transfer fee).
Based on an assumed credit limit of £1,200 and a purchase rate of 18.9% (variable) the card would cost a representative 18.9% APR variable. Credit is subject to status and terms apply.
From this summer, the card will be relaunched with credit card provider New Day. John Lewis has confirmed to Which? the number of points you earn will not change, however, the APR and interest-free spending period could differ.
If you have a John Lewis Partnership Credit Card there will be no immediate changes and you will be able to earn points and spend reward vouchers as usual.
John Lewis said they will write to customers this summer to give more details on what will happen.
If you want to get one of these cards, you only have until 9 May to apply, otherwise, you’ll have to wait until summer.
John Lewis has not given an exact date for when card applications will reopen.
Find the best deals, avoid scams and grow your savings and investments with our expert advice. £4.99 a month, cancel anytime.Sign up now
John Lewis said the card would be relaunched with new digital services to ‘help customers in the moments that matter’.
It said the relaunch forms part of its wider plans to provide more financial products and services and it will be increasing the size of its John Lewis Finance team by a third.
New Day has hinted that more customers may be eligible for the new card.
John Hourican, CEO of New Day said: ‘New Day has a track record of over 20 years of underwriting, and our proprietary credit decision capabilities allow us to responsibly say "yes" to more customers, which will enable even more John Lewis customers to enjoy the much-loved Partnership Card rewards.’
New Day has previously teamed up with Amazon for its Amazon Classic and Platinum Credit Cards, however, it was announced in March this partnership would end in January 2023, with customers being transferred to New Day’s Pulse cashback credit card.
Here is how the Partnership card stacks up against other reward cards on the market. All the cards we compared have no annual fee and are listed by APR.
|Reward credit card||What it offers||How many points can you earn?||APR (representative variable)|
|John Lewis Partnership Credit Card||Interest-free spending for nine months and 18 months 0% on balance transfers (with a 2.9% balance transfer fee).||Five points for every £4 spent in John Lewis or Waitrose online and in store. One point for every £4 spent elsewhere.||18.9%|
Tesco All Round Credit Card
|Interest-free spending for up to 15 months and 0% interest on balance transfers for up to 15 months (with a 1.99% balance transfer fee). You also get up to 15 months 0% interest on money transfers (with 3.99% fee).|
Five Clubcard points for every £4 spent in Tesco. One Clubcard point for every £8 spent elsewhere.
|Sainsbury's Nectar Credit Card||Interest-free spending for up to 17 months and 0% interest on balance transfers for up to 17 months (with a 3% balance transfer fee.||Three points per £1 spent at Sainsbury's, Argos, Habitat and Tu Clothing. One point for every £5 spent elsewhere. 8,000 bonus points if you use the card to spend over £400 at eligible stores during the first two months of opening the account.||20.95%|
|M&S Shopping Plus Credit Card||Interest-free spending for up to 24 months and up to 24 months 0% on balance transfers (with a 2.9% balance transfer fee).||One point for every £1 you spend in M&S and one point for every £5 you spend elsewhere.||21.9%|
All these cards have no annual fee and offer reward points, as well as a certain period of 0% interest spending or doing a balance transfer.
Sainsbury's is the most generous with reward points, offering three Nectar points per £1 spent at its stores. John Lewis and Tesco both offer five points per £4 spent with them.
The best card for you will depend on where you shop the most. If you mainly shop at John Lewis or Waitrose, the Partnership card is a good choice, however, if you find yourself shopping more at Tesco, Sainsbury’s or Marks & Spencer, you may be better off applying for an alternative card.
John Lewis was a highly-rated credit card brand in our 2021 credit card satisfaction survey.
Customers gave it a score of 76% - well above average - but the card didn’t meet the benchmarks set in our product analysis to secure Which? Recommended Provider status.
It scored well in several categories, including customer service, application process, clarity of statement, dealing with queries and complaints and the ability to manage the account online.
It didn't do as well on its charges for using the card abroad and the ability for customers to manage their account by telephone.
A reward credit card can be a great way to get rewarded for your spending.
To maximise rewards put all your everyday spending on them. Just make sure you pay your bill in full every month - interest can be high and could wipe out any money you make in rewards.
If you will struggle to pay what you borrow in full every month, you may be better off considering a low-interest or interest-free credit card.