John Lewis and Waitrose credit card customers with the flagship Partnership Card will be hit with increased interest rates from October.
The retailer is increasing the interest rate on the account from 16.9% AER to 18.9% AER.
John Lewis says in a statement that it is making the changes in order to “maintain a sustainable credit card”.
All affected customers are being written to and will be given the option of closing their account if they do not agree to the new interest rate.
Additional changes to the Partnership Card have already taken effect. These include the fee charged for balance transfers rising from 2.5% to 2.9%, remaining subject to a minimum fee of £5.
The introductory interest free period on purchases has also already risen from six months to nine months, while the 0% introductory balance transfer period is now 18 months, up from its previous six months.
There are no changes to the rewards element of the Partnership scheme. Shoppers will continue to earn one point per £1 spent in both John Lewis and Waitrose, plus a point for every £2 spent elsewhere.
‘We're writing to all existing customers’
John Lewis says: "We last made changes to the Partnership Card’s standard interest rates in 2007 and in order to maintain a sustainable credit card, we have now made the decision to adjust our rates.
“We are writing to all existing customers and they will receive a letter in due course, giving them 60 days’ notice about the changes.
"The Partnership Card continues to remain competitive, and our reward scheme remains unaffected. The changes apply to all Partnership Card customers."
Despite these changes, the Partnership Card remains one of our Moneywise Best Buys for credit card rewards. Read our guide to see the best picks on the market today.