Egg Money Rate Increase to 16.9%

rsykes2000

Had my email same as several here going from 16.9 to 21.9. I will be choosing option B to pay off at the current rate, does anyone know if there is any time period for this, or does it just go via the minimum repayments (which I am overpaying a bit anyway). I am assuming there won't be a negative impact to my credit history if I was to choose this ?
Cheers.

mandyrosey

silverbullit wrote: »

I've just received an email informing me that the rate on their Egg Money card is to increase from the current 12.9% to 16.9% as from 6th March 2009. Those who have the card may recall that the rate increased from 7.9% to 12.9% in August 2008. I'm just glad that I am able to pay off my full balance at the end of every month, otherwise the !!!!!!s would be screwing me royally!

My rate increased from 17.9 to 21.9% and unfortunately i have a debt on it and don't pay off in full, but they stated in their e-mail that I could cancel the card & pay off the debt at the current rate of interest so I've done that. I never used the card anyway only transferred other debts to it when I received tho 0% offers. Mine isn't a cashback card so there was no benefit in using it. Curiously I received this e-mail after asking them when they were going to reduce the interest rate as they've been doing on my savings a/c (to 1.5%!)

mandyrosey

rsykes2000 wrote: »

Had my email same as several here going from 16.9 to 21.9. I will be choosing option B to pay off at the current rate, does anyone know if there is any time period for this, or does it just go via the minimum repayments (which I am overpaying a bit anyway). I am assuming there won't be a negative impact to my credit history if I was to choose this ?
Cheers.

my e-mail says this has to be done before 6 March.

Eydon

Paul_Herring wrote: »

Stop it. Please.

If you're spending regularly on the card, then they most certainly are making money from you - don't forget that the CC companies charge a percentage for any transactions to the vendor, from around 2-3% for MC and Visa to around 5% for Amex.

Egg are a card issuer only. The money charged per transaction is levied by the acquiring bank (the one who supplies the terminal to the merchant), Visa and/or Mastercard.

Issuing banks make their money from charges and interest, so if you are a full payer and you use your Egg Money card effectively, you will be costing them around £200 per year in cashback payments.

Paul_Herring

mandyrosey wrote: »

my e-mail says this has to be done before 6 March.

No. March 6th is the deadline by which you must notify Egg that you wish to avail yourself of this clause. It is not the date by which it must be cleared.

From the email concerned:

Also, if you have an outstanding balance, interest and charges will still apply at your existing rate until the balance is repaid in full and you must still continue to make your minimum monthly payments.

LumpyCustard_2

No email here yet and my rate's still at 12.9%. It doesn't make much difference anyway as I pay it off at the end of the month, and am currently only using it for Shell fuel purchases. So even if it does go up, I'll keep it to take advantage of the 1% cashback and 4% interest on positive balances.

CD_Man

Just messaged Egg and told them to stick it where the sun doesnt shine.

b0nuschaser

I will be doing the same very shortly...

HH62

Just quickly scanned the replies here and I think I have the record.
Email from Egg to say my new rate will be 26.9%
I haven't used the card for a while so I'll cancel it - will look better on my credit file.

Frugaldom

HH62, is your email referring to Egg Card (Visa) or Egg Money (Mastercard)? If it's the Money card paying 4% on credit balances and 1% cashback, I find this a much better deal than my high street bank account with debit card. It's comparable to the top easy access interest rates I can find at the moment, I'm supposing they'll soon drop their rate on that, though.