NickX-advise on credit card please

Any

Hi NickX,
Over my time on the thread I've noticed that you know a lot about credit cards so I am hoping you can give me and my sister advice.

My sister buys everything on credit card - she spends about 30k a year (I know, she is a BIG spender) and until now she had NatWest credit card (something called "private") and she was collecting airmiles. But then they changed their system, which upset her a bit and today she got letter saying she will be charged annual fee of £200 as well. So she got upset and called me whether I know where to change to. I suggested EGG MONEY as she wants some rewards for her spend and they have 1% cash back. Do you think that was good suggestion?
I would also mention that she travels abroad a lot and she pays her bill every month in full.

Thank you

johnllew

With that sort of annual spend, she'd probably be better off with Amex Platinum, which pays new cardholders 5% cashback on up to £4,000 spending during the first three months. Once this intro offer expires, its rates are tiered paying a maximum 1.5% cashback.

Egg Money has a cap on cashback; only £20k spend per annum will qualify.

She should go through a cashback site when applying for the Amex card: CashbackKings offer £45: http://www.cashbackkings.com/american-express/bargains/m981

Any

johnllew wrote: »

With that sort of annual spend, she'd probably be better off with Amex Platinum, which pays new cardholders 5% cashback on up to £4,000 spending during the first three months. Once this intro offer expires, its rates are tiered paying a maximum 1.5% cashback.

Egg Money has a cap on cashback; only £20k spend per annum will qualify.

She should go through a cashback site when applying for the Amex card: CashbackKings offer £45: http://www.cashbackkings.com/american-express/bargains/m981

Thank you for that,
my only worry is that Amex Platinum is not as widely accepted.. At least that is what used to be the case. I know from the side of merchant that American Express charges HUGE fees for allowing the merchant to take American Express payments and that is why many merchants won't accept it. Am I right or am I worrying for no reason?

NickX

Any wrote: »

Hi NickX,
Over my time on the thread I've noticed that you know a lot about credit cards so I am hoping you can give me and my sister advice.

Thanks for the compliment, although there are plenty of others who know just as much, if not more, than I do.

For cashback, Amex Platinum with its 5% during the first 3 months does appear to be the best deal around. Only thing to bear in mind is that not everywhere accepts Amex so your sister may want to check with her regular suppliers before applying.

If she has a good credit rating, which I suspect she may if she is spending £30k per annum, the best purchases card is Capital One Platinum offering 0% on Purchases and Balance Transfers until October 2009.

If she can get this card, she could put all her expenditure on the card, pay the Minimum Payment until October 2009, and save an equivalent amount in a high interest savings account either until October 2009 or until she gets close to the Credit Limit. That way she would earn some extra money by way of the interest on the savings that she would otherwise had to have used to settle the card balance earlier on. She should just ensure that she settled the balance in full before the October 2009 Statement Date to avoid paying interest.

Good Luck.

johnllew

Any wrote: »

Thank you for that,
my only worry is that Amex Platinum is not as widely accepted

I never really had much of a problem when I used my Amex Blue card; perhaps two or three occasions a year, and always had a backup card like Egg Money.

If I had a spend of £30k pa, I'd go for the Amex Platinum but am currently content with my Citicard which pays 1%, no cap.

A long interest-free period on purchases is certainly worth looking at, though she'd need a healthy credit limit if she's piling up £2.5k a month. And the 5% cashback on purchases for the first 3 months with Amex Platinum will beat an interest-free offer.

Paul_Herring

Any wrote: »

Thank you for that,
my only worry is that Amex Platinum is not as widely accepted.. At least that is what used to be the case. I know from the side of merchant that American Express charges HUGE fees for allowing the merchant to take American Express payments and that is why many merchants won't accept it. Am I right or am I worrying for no reason?

You're right, but possibly worrying.

Got Amex, and a 2nd card for where Amex isn't taken. I use Egg Money (1% cashback) where Amex isn't taken.

I've told my 2nd card holder to use Amex first and Egg 2nd...

Any

Thank you guys :T :beer:
I suggested she gets American Express AND Egg Money card.
Stoozing is not safe for her as she is not the sort of person who is on the top of her time keeping.. Also the credit card limit wouldn't be high enough, because she never got one higher then 10k, which I suspect is because she only has "side" cards to her husband's ones.

NickX

Any wrote: »

Thank you guys :T :beer:
I suggested she gets American Express AND Egg Money card.
Stoozing is not safe for her as she is not the sort of person who is on the top of her time keeping.. Also the credit card limit wouldn't be high enough, because she never got one higher then 10k, which I suspect is because she only has "side" cards to her husband's ones.

Good idea to get the two. Amex offer the best cashback rate, and she will have Egg Money as a backup.

In fairness £10k isn't a bad limit and as she is spending £30k per year there may well be a good case to get an increase.

The fact that her cards are additional to her husband's accounts means that it is actually her husband who is being assessed for credit. In these instances it is the Primary Cardholder who is 100% liable for the account, so the credit facility offered is based on her husband's financial history.

She is probably best to stick with this provided her husband is in agreement as she is likely to have minimal credit history in her own right and would probably get a much lower limit or even get declined.

Good Luck to you both anyway.

Any

NickX wrote: »

Good idea to get the two. Amex offer the best cashback rate, and she will have Egg Money as a backup.

In fairness £10k isn't a bad limit and as she is spending £30k per year there may well be a good case to get an increase.

The fact that her cards are additional to her husband's accounts means that it is actually her husband who is being assessed for credit. In these instances it is the Primary Cardholder who is 100% liable for the account, so the credit facility offered is based on her husband's financial history.

She is probably best to stick with this provided her husband is in agreement as she is likely to have minimal credit history in her own right and would probably get a much lower limit or even get declined.

Good Luck to you both anyway.

Thanks.
She is going to get those cards in his name again He has NO idea about money, so she is in charge. His prefered payment method is CASH and he collect £50 notes which he hides in his safe... We do realise she probably has no history of her own, as she is a house wife. She also works in his business during the day as he decided to go back to work for an employer, but everything is in his name. Veeery strange if you ask me...