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Home HEALTH I fear rejection if I reapply for my John Lewis credit card...

I fear rejection if I reapply for my John Lewis credit card | consumer affairs

I have had a John Lewis card since the 1980s, first when it was a store card and then when it changed to a credit card.

It’s my preferred payment method, both in and out of the store, and I pay the balance in full every month. I have been doing it for the last 40 years.

But, as a result of the company changing their lender, they are asking holders to reapply and I am concerned that my application will be denied.

My sister-in-law, who is retired and a long-time cardholder, was turned down and Trustpilot’s site is full of horror stories about declined applications or cut spending limits.

Last year I left a job with a six figure income, sold my house and moved from London. I am two years below the state retirement age, but I have arranged my finances so that my purchasing power is greater than that of my thirty-something daughters.

If I apply and am turned down, will it affect my credit rating?

TM, Eastbourne

His letter is one of a number of John Lewis cardholders who have had trouble switching lenders from HSBC to NewDay, a process that requires customers to reapply and undergo a credit check.

He was so worried that a failed application could lower his credit score that he decided not to apply.

However, it would have been nice to go through the initial eligibility check which would have told you the likely outcome of the application. This is a “soft search” and would not have had an impact on your credit score.

If you cleared this hurdle and proceeded with the full application, a “hard search” will appear on your credit file at this point.

John Lewis says that NewDay has a statutory obligation to assess the creditworthiness of each client and says that 96% of those who have applied to date have been accepted.

Social media and press reports tell a different story, as previously high-spending customers are infuriated by being turned down or given small spending limits.

Other readers were angry that the apps are online and require a mobile phone for security purposes. They also question the decision to stop accepting cash or check payments.

John Lewis says that using a mobile phone for authentication protects customers from fraud, and the decision to stop accepting the other payment methods is due to lack of demand.

We welcome letters, but cannot respond individually. Email us at consumer.champions@theguardian.com or write to Consumer Champions, Money, the Guardian, 90 York Way, London N1 9GU. Include a daytime phone number. Submission and publication of all letters is subject to our terms and conditions.

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