Home Credit card I’m afraid of being rejected if I reapply for my credit card John Lewis | consumer affairs

I’m afraid of being rejected if I reapply for my credit card John Lewis | consumer affairs

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

It’s my preferred method of payment, both in-store and in-store, and I pay off the full balance each month. I’ve been doing it for 40 years.

But, following the company’s change of lender, they are asking cardholders to reapply and I’m afraid my application will be denied.

My sister-in-law, who is retired and a longtime cardholder, has been turned down, and the Trustpilot site is full of horror stories about denied claims or reduced spending limits.

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

If I apply and get rejected, will it affect my credit rating?

TM, Eastbourne

Your letter is one of a number of John Lewis cardholders who have encountered problems with the lender transfer from HSBC to NewDay – a process which requires customers to reapply and pass a credit check .

You were so worried that a rejected application would lower your credit score that you 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 involves a “soft search” and would not have impacted your credit score.

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

John Lewis says NewDay has a regulatory obligation to assess the creditworthiness of every customer and says 96% of those who have applied to date have been accepted.

Social media and news articles tell a different story, as previously spending customers were furious at being turned down or given tiny spending limits.

Other readers were upset that the apps are online and require a cellphone for security reasons. They also question the decision to no longer accept payment by check or at the counter.

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

With its affluent clientele, for many this card is about rewards (points earned through spending are converted into John Lewis vouchers) and not additional purchasing power, so turning away loyal shoppers is a huge focus. It’s not the only rewards card available, so it’s time to shop around.

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