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Egg Money Card Rip -Off?
malinky
Posts: 8 Forumite
in Credit cards
When you take out an Egg money card you are quoted at 7.9% in E-mails, however this rises to 16.9% in the letter that you are sent when you receive the card. Then after you have activated the card you are sent an E-mail which raises the APR to a staggering 19.9%!
Rip off or what?
Rip off or what?
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Comments
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When you take out an Egg money card you are quoted at 7.9% in E-mails, however this rises to 16.9% in the letter that you are sent when you receive the card. Then after you have activated the card you are sent an E-mail which raises the APR to a staggering 19.9%!
Rip off or what?
You are quoted a typical APR of 7.9%. This is dependent on your credit rating and your credit score with Egg. If they sent you something in writing saying 16.9% and then an email saying 19.9% I would contact them and ask what is going on. Anyway, you should use this card for the 1% cashback and pay it off in full. Your interest rate will be irrelevent then.0 -
The increase to 19.9% is a recent review of rates which they've done for all their customers, and which they are allowed to do at any time under their terms and conditions. The other "increase" is as M Thomson says.0
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Ooo i must be lucky then as my rate of 7.9% has been there since i got the card, it is annoying when they do rise it though so i do understand. My old egg card used to be competitive, it next to useless now! Egg do have the habit of changing there rates, if they got rid of their egg money cashback i'd be off like anything0
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Hello.
I am new to Money Saving Expert and hope that someone may be able to give me some advice? I have had an Egg card for about 18 months now and have been paying 16.9% PA. I have just received an email to say that they are rising my interest rate to a whopping 21.9%!!! They said it is due to the way I have managed my account but I have NEVER missed a payment (pay DD) and always stayed within my credit limit. I don't see how this is fair at all. :mad:
My credit score is not perfect so I don't want to risk applying for another cheaper card in case I am rejected. Does anyone have any suggestions or has this happened to anyone else or is it just me???
Thanks0 -
They have been doing it systematically starting last autumn.
I suggest that you contact them to ask them to explain in what ways your conduct of the account has been unsatisfactory to them. They may then reply saying that it is a general reassessment of credit ratings. If you have had no other negative credit events with anyone else since opening the account (no other missed bills that would reduce your credit score if they did another credit check - they probably didn't), haven't moved home and are on the electoral register that also provides no individual reason for the change.
Final result is quite likely to be them saying that they have adjusted their credit scoring and the rate you get is where you now fit in their system. And that will be the final answer: they can arbitrarily change the rate and you're stuck with what they change it to.
But don't let them change it without asking them to reconsider, since they definitely won't adjust it back if you don't ask.0 -
thank you. I am just absolutely gutted. I have since found another thread of loads of people who it happened to in August last year. I will write to complain but doubt I will get anywhere. Wonder if anyone has had the decision reversed?? I really feel that they are punishing those who can't go anywhere else!0
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Maybe you are taking their wording the wrong way, and they are actually increasing the rates for all those customers who DO pay by DD and never miss a payment (i.e. those who they are not making any money out of)?
We are in the same category as you and our rate has been increased.
It's not unique to Egg, though - many card companies are increasing their card rates to compensate for the lost penalty fee income caused by the FSA/OFT's rulings on the subject.0 -
Just for the sake of balance - I pay off in full every month and I'm at 7.9%.DFW Nerd 0350
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mortified_penguin wrote: »Hello.
I am new to Money Saving Expert and hope that someone may be able to give me some advice? I have had an Egg card for about 18 months now and have been paying 16.9% PA. I have just received an email to say that they are rising my interest rate to a whopping 21.9%!!! They said it is due to the way I have managed my account but I have NEVER missed a payment (pay DD) and always stayed within my credit limit. I don't see how this is fair at all. :mad:
My credit score is not perfect so I don't want to risk applying for another cheaper card in case I am rejected. Does anyone have any suggestions or has this happened to anyone else or is it just me???
Thanks
Is it possible that you have asked them to raise your credit limit since opening the account? If that's the case, they may have done another credit check and become 'concerned' ?
In any case, as another poster said, I would ring them and ask them to reconsider.0 -
Thank you for that, I did ask for an increase some time ago but it did occur to me that they may have looked at my credit report so I got the 30 day free trial from experian. There is no record of a search/enquiry other than the original one when I took the card out. I would have thought that one would show if they had been on?
Will be writing to them anyway but bet they don't tell me anything!0
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