January 26, 2006

The John Lewis Partnership and Tesco have announced that they are to increase their interest rates from February 2006. Now be the time for consumers with these to start looking elsewhere for a better deal.

This move has been long expected with credit card companies coming under increased pressure from credit card “tarts”

A credit card “tart” is someone who switches their debt from one credit card to another to take advantage of any 0% deals. The problem is that credit card companies incur extra costs in offering these 0% deals and end up having to increase interest rates to try and claw back some money.

The long-term problem is for loyal consumers who stick to one credit card, they are being penalised for the actions of others.

The Tesco Platinum credit card is increasing from 14.8% APR to 15.75% APR while the John Lewis Partnership card increases from 14% APR to 15.5% APR.