Egg Money Rate Increase to 16.9%

financial_warrior

withnell wrote: »

If this was true, why do the card companies keep offering me incentives to stay with them? I've always paid my balance off in full.

What incentives are card companies offering you to stay with them?

I haven't changed card companies in some time, but when I have in the past the only thing they seem to wheel out as a retention tool is a reduced APR on a BT or purchases. Hardly useful if you're a full-payer already.

Are you getting different offers to me? Lower APR? More cashback? Carriage clock? I'd like to know if you're getting offered the clock, as I want one of those...

withnell

I got 2% cashback on everything for 6 months, and £30 cash payment recently

Joe_Bloggs

From Jmids Post

Not only do I clear my balance each month but my egg savings also exceed what I spend on the card. Less than a year ago they also increased my credit limit by almost 40% on my egg credit card (now closed). The implication that you get a lower rate for having a good credit rating seems wholy dishonest.

I have filled a cash ISA with Egg and with a few K in savings. I am close to having double the paltry 3K limit on the Egg Money Card, in savings with them. I still get the 16.9% treatment but as I always operate the card with a positive balance it never takes effect. So much for risk based pricing etc.
On reflection, somebody else has to pay for the 4% interest when in credit and the 1% cashback. I know it isn't me.

My only gripe is that it takes several days to transfer money from Egg Savings to Egg Money. Why the delay!?
The nice feature of their savings accounts is that they credit balances made by debit cards instantly.
Don't ask about transferring back from Egg Money to Egg savings as this appears to break the banking logic behind their system.
J_B.

financial_warrior

withnell wrote: »

I got 2% cashback on everything for 6 months, and £30 cash payment recently

Fair enough. Egg?

financial_warrior

Just wanted to add to this thread that every friend and colleague I know that holds this product, including Egg employees themselves, have had notification of their APRs being increased.

rinkydinkpanther

I haven't had my rate increased. I wondered if I just hadn't heard, so I checked with them, but they have confirmed mine is staying at 12.9%. They did tell me that they have increased my credit limit, unasked.

financial_warrior

12.9% seems the lowest people can be on at the moment. I'm moving up to that from 7.9%.

I checked with Egg customer services, and they confirmed a few useful things to know about cashback and terminating your account:

- If you don't opt to cancel your account, you will get your cashback in March
- If you do inform them that you wish to cancel, but continue repaying your balance at your existing rate, you WILL receive cashback in March IF you don't settle your outstanding balance before the cashback payment date, and IF the cashback is over £10.
- If you inform them that you wish to cancel your account, and repay your balance in full, or have no outstanding balance, you will not be paid any cashback owing to you.

Seems reasonable enough. Means most people should be able to claim their cashback without taking a hit.

withnell

financial_warrior wrote: »

Fair enough. Egg?

Egg have consistently given me 1% cashback - and I haven't tried to leave them as yet

BoyMonkey

Another one here who is severely unimpressed with Egg. What I can't understand is their consistency. I had both Egg and Egg Money cards. The former with a £5,300 limit and about £1k outstanding, the latter with a £3k limit and £500 on it. They raised the interest to a whopping 26.9% on Egg but only 16.9% on Money. How on earth is that consistent customer profiling?

I've complained until I'm blue in the face (I know it won't get me anywhere but I do this as a matter of principle) and I've escalated this to their customer relations team. Their main explanation seems to have been LIBOR increases although their margin between LIBOR and the rate charged to me will be increasing by far more.

I'm voting with my feet. I've cleared the balances, just literally moved my savings account and I'm investigating ways of cancelling my household insurance early to move to another provider. Their behaviour is absolutely disgusting.

CopperPlate_2

What I can't get over is the fact that they are indicating it's a result of 'increased risk' - now, I'm just thinking off the top of my head here:

If there is a perceived risk regarding someone and their creditworthiness/overstretching themselves, surely the most pragmatic way of restricting that 'risk' is to reduce the credit limit? Surely by only increasing the % rate they are increasing the profit they make from those who carry a balance - anyone who goes over their credit limit, regardless of whether they clear their balance each month or not, would be charged the same punitive penalty? By dressing it up as the individuals who have had increased APR's as somehow increased credit risks, all they've done is make more money out of this risk, rather than acting to limit that individual's spending power? Just a thought and certainly not thought through to any great economic degree!