Egg interest rises

alice79_2

I came across an article on another website relating to ridiculous rises in the interest rates offered by Egg. It said that you could cancel the card and repay at the current rate. However I'm not 100% sure what that means, Does it mean that I would have to repay the amount in full when I cancel the card? (Definitely not possible!) Or does it mean that I would be cancelling the card in terms of having anymore available credit (which I don't want to use anymore anyway) but would be able to carry on making payments?The way the article stated it it wasn't very clear, but I can't really see a CC company letting me pay off a balance at a lower rate!

smartpicture

They are offering the option of going onto a higher rate, or staying on the rate you currently are - but if you choose the latter, you cannot spend any more on the card, you continue to pay it off and once the balance reaches zero they will close the account. They don't expect you to pay it all at once, but you can't use it again.

oldone_2

I think it is now pretty obvious that Egg want to get rid of all their Credit Card customers. Those that elect to pay ever increasing interest rates and still stay with Egg will find that the credit limits will be progressively reduced.

withnell

To be fair to Egg their rates have been consistently low, and the increases just bring them more into line with the competition

financial_warrior

To be fair to Egg their rates have been consistently low, and the increases just bring them more into line with the competition

The Egg Card product has been as homogeneous as most of the other banks' offerings for a good 5 years.

Your right, Egg Money has been a 'cheap' card product, but given Egg has nothing left to differentiate on, why would people accept a price increase? Call centres now shut at 8pm, secure messages take 5 days to be answered, the website has failed to keep pace with competitors. If a product is going to be priced the same as the competition, I'm going to look for other differentiating factors.

alice79_2

thanks for clearing that up for me. i sense a cancelled credit card on the horizon!

Paul_Herring

The rates on that particular card are (well were) 'cheap' because the initial balance limits are low - this is the card you're expected to 'front-load' before using.

alice79_2

credit card - cancelled!

sparkey1

Cancelled mine today. If your still deciding to do it think of it like this.

Dont do, and then your paying more interest. Even if you repay every month, one day you might not and then they have you paying even more interest!

Or cancel and send the message to Egg that you are not going to put up with sudden rate increases. Longer term the whole credit card industry might see that sudden rises in interest rates, annoy customers, increase cancellations and lead to less profit.

Oh, and dont forget, if you do cancel, you can continue your repayments until the balance is paid off which could in some cases be years but at least that is better than paying for longer due to higher interest rates.

DS-2

Egg hiked their credit card interest rate and have slashed their savings rates; deals for new customers notwithstanding.

I've settled my balance, like I did every month, and moved my savings.

I should actually thank Egg who woke me up to the pathetic 0.1% cashback that never yielded anything for me , and the gradual erosion of the savings' interest rate.

That credit card interest rate hike, that actually had no impact on me, was a welcome wake up call.

Thank you Egg! I am now in a better savings account and have taken out a Tesco clubcard credit card which is more suited to my needs

And I will never darken Egg's or their Parent Company's doorstep again.

:T

Paul_Herring

DS-2 wrote: »

I should actually thank Egg who woke me up to the pathetic 0.1% cashback that never yielded anything for me , and the gradual erosion of the savings' interest rate.

I believe most of the respondants on this (and the other) thread are talking about Egg Money (mastercard) where the cashback is 1% with 4% on positive balances, not Egg Card (visa) which is 0.1% and 0% on positive balances.