Egg Money - increase refused

Paul_Herring · 16 April 2007 at 11:45AM

Anyone tried recently to get a credit increase from Egg for their Money card?

Short version: For 3 months in the past 6 I've used up 65-85% of the credit limit. The card is paid off in full every month without fail for coming up to 2 years. There are 2 of us using the account. I'd like an increased 'buffer-zone' 'just in case.' Their positive balance interest rate leaves a lot to be desired.

Long version: The secure message I sent Egg:

Me wrote:

I've just applied to increase my credit limit from £3000 to £4000. I pay my card off in full every month (and have done since around May 2005,) and this month I used up to £2,424 of my current limit (previous highs include £1974 in January and £2489 in December), and thought it wise to apply for an increase so that I don't exceed my current limit. I was turned down.

If the income limit is the problem, there are two people spending on this credit card (myself and a 2nd card holder) yet the form only asks for my income - there is no provision to take the second cardholders income into account, unless I'm expected to lie on that form?

What exactly do I have to do to get an increased credit limit? Apply for a card elsewhere?

Overfunding the card to put it into a positive balance is an unacceptable option since your interest rate is less than my current account - while Egg have taken the opportunity to increase the interest rate on negative balances, I've noticed they've decided to not touch the interest rate on positive balances despite increases in the BoE base rate.

highguyuk · 16 April 2007 at 12:42PM

Think yourself lucky - my limit is only £500! lol.

lisyloo · 16 April 2007 at 1:23PM

You could try appealing the decision, however I failed and they told me that the product was not meant to be used like a standard credit card (you can get EGG visa for that).

If you current account rate is better than why not use a debit card on your current account? or get an Egg VISA card? (which anecdotally gives much higher limits).

I suspect it's because you want cashback.
So you want the best features of your current account and the best features of the Egg money card in one package?
Am I right?

Unfortunately I don't think you can have the best of both world in one package.

I have a very good credit ratings and good income.
I had a £15K limit on the Egg card (before I closed it) and only £3K on Egg money.
This cause me problems last year when I bought my husband a special present for his 40th birthday but despite my good record and income they would not increase it.

Try the appeal as you'll get to speak to a human and not "computer says no" however based on my experience I would expect them not to change their mind.
That's jsut how their product was deisgned and that's it as far as they are concerned.

Paul_Herring · 16 April 2007 at 2:00PM

lisyloo wrote:

You could try appealing the decision, however I failed and they told me that the product was not meant to be used like a standard credit card (you can get EGG visa for that).

Um - it's a credit card; I'd expect to use it as such

And given Visa's little faux pas last week, I'm not sure I'd want to be beholden to them for all my cards (well that's what I'd tell Egg anyway

)

If you current account rate is better than why not use a debit card on your current account? or get an Egg VISA card? (which anecdotally gives much higher limits).
I suspect it's because you want cashback.

Nail on the head. And because I want the 40-odd days interest free credit.

So you want the best features of your current account and the best features of the Egg money card in one package?
Am I right?

Indeed

I want to use the credit card, earn cashback, and get interest free periods.

Unfortunately I don't think you can have the best of both world in one package.

Ah - but I am at the moment; I just want to up the credit limit so I can carry on doing so

I have a very good credit ratings and good income.
I had a £15K limit on the Egg card (before I closed it) and only £3K on Egg money.

Ditto with the amounts. I even moved credit limit from 'Egg Blue' to 'Egg Green' to max the limit on Green to take advantage of the 0% no fee balance transfers at the time. I canceled Egg Card (Green as was) because it wasn't worth having since I had Egg Money (Blue as was) which gave me cashback, and Card had started charging an interest bearing fee on BT's. I kept the 'Blue'/Money limit as was, rather than move some before cancelling, because at the time there was just me spending on it.

This cause me problems last year when I bought my husband a special present for his 40th birthday but despite my good record and income they would not increase it.

This is probably the answer I'm after.

Try the appeal as you'll get to speak to a human and not "computer says no" however based on my experience I would expect them not to change their mind.
That's jsut how their product was deisgned and that's it as far as they are concerned

Just as well I got the Halifax One 0% for 12 months; I may move the 2nd card holder over to that for a while.

lisyloo · 16 April 2007 at 2:20PM

Um - it's a credit card; I'd expect to use it as such

I agree with you but the gist of what they told me is that it isn't meant to be used like a traditional credit card.
It's meant to be pre-loaded (presumably after you get paid each month) and then used as a hybrid debit/credit card.

Personally I don't think they should try to dictate how their customers use their product, however they seemed non-negotiable on the matter.

Of course a certain amount depends on the person you get the speak to so there's a possibility you might have a different experience.
Perhaps the person I spoke to didn't like me or got out of the wrong side of bed that day, so it still might be worth a try.
However anecdotally I have heard many times from other people that the limits do tend to be quite small.

abitrubbish · 16 April 2007 at 2:32PM

I only have a limit of £900 on mine, which I am using pretty much all of every month (before paying off in full). I was hoping they were going to offer to increase it, but that seems unlikely given what everyone else is saying.

Paul_Herring · 16 April 2007 at 2:36PM

abitrubbish wrote: »

I only have a limit of £900 on mine, which I am using pretty much all of every month (before paying off in full). I was hoping they were going to offer to increase it, but that seems unlikely given what everyone else is saying.

I think the fact that two of us has/had a £3000 limit would suggest you have a lot of leeway for increases

However I don't think they'll offer to increase it; you'll have to ask.

jonboy31 · 16 April 2007 at 3:47PM

I had the same problem 6 months or so ago, I wanted to buy something worth more than my limit. Paid off in full every month, quite often on my limit, but no. They also said to me that it wasn't supposed to be used as a traditional credit card, and when I questioned that the egg card I had with them (which I since cancelled) had three times the limit, they replied that it was a totally different product sir. More like that it had double the interst rate and only 0.1 percent cashback if you ask me :P

John

---lee--- · 16 April 2007 at 5:03PM

If the income limit is the problem, there are two people spending on this credit card (myself and a 2nd card holder) yet the form only asks for my income - there is no provision to take the second cardholders income into account, unless I'm expected to lie on that form?

Egg Money limits are known to be quite low. Your post suggests that the second card holder has an income why not get them to apply for an egg money card in their own right?

Paul_Herring · 17 April 2007 at 10:00AM

---lee--- wrote: »

Egg Money limits are known to be quite low. Your post suggests that the second card holder has an income why not get them to apply for an egg money card in their own right?

No credit history, (rather than bad credit history) therefore difficult to successfully apply.

In other news, I've had a reply off them:

Egg wrote:

Dear Paul

To ensure you get the right answer to your question, I've passed your message on to our Credit Limit team. I've asked that they contact you as soon as possible.

Thanks for your message.

Regards

Internet Customer Services

Looks like I shouldn't hold my breath... Last time I had this sort of response off them it took them a couple of months to resolve the problem.

Paul_Herring · 17 April 2007 at 1:00PM

lisyloo wrote: »

You could try appealing the decision, however I failed and they told me that the product was not meant to be used like a standard credit card (you can get EGG visa for that).

Well they sent another message for me to ring up and appeal, which I did.

They gave me the same "it's not meant to be used like that" spiel, asked quite a few questions (income, useage, outgoings etc.,) and after 20 minutes got a phone call back; they approved the increase

Egg Money - increase refused

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