egg money scraps 4% interest from april 25th

student100

financial_warrior wrote: »

student100 wrote: »

I'm one of the many people that never have a positive balance on Egg Money, so on the whole I think these changes are for the better.

So you must be enjoying the benefits of their new higher APR.

I don't pay a penny in interest either, so the APR is meaningless.

I must admit to not using the Egg Money card much any more (since I got a Capital One Mastercard when they were doing the 3% cashback intro offer and they gave me a credit limit twice what Egg Money did) but kept it in case one of them ever dropped the 1% cashback. The extra insurances might sway me towards using the Egg Money more often for certain purchases.

Egg Money were always very reluctant to give generous credit limits, reasoning that if you needed to spend more than your limit you could pre-load the card. But now this has gone away I was wondering if they might be more willing to consider a limit increase if appropriate.

WaltD

Anon wrote: »

The feature that they have removed, i.e. positive balance, was its feature as no one else did it - without it, they may as well close it down and get you onto Egg Green (oh, sorry, forgot - haven't used that for a while as got it for the BT years ago in the days when they gave out high credit limits but if I don't before 20th they are cancelling that as well).

Anon

Actually, I used my green Egg card a lot during February and March this year (after a gap of about a year not using it at all), because they were giving 2% instant cash-back on fuel purchases at Shell filling stations. Sadly, that offer finished at the end of March. There are still a few discount offers running, but nothing I am ever likely to buy.

WaltD

sicker

Thank you Egg, I just removed my £2000 credit balance because of the interest rate change and bought 7000 rbs shares which have just risen 10%+ at this moment (better than 4%apr). Just hope they keep moving upward.

Megalomaniac

Interesting to see so many people against this change. I think this card is designed to reward those who pay off in full each month (as MSE Martin says in the guide). Therefore, quit complaining about losing 4% interest (you can still get 3% in savings accounts and before this latest interest rate cut, no one was using it for positive balances surely). Be glad you still have the 1% cashback on everything you buy. For many non-stoozers, I would say the 1% cashback is the main incentive for the card in the first place so I for one am very glad to see it remain. AND the added bonus of these protections... ok maybe there are 50 pages of T&Cs but it's better than nothing like what most other normal credit cards offer.

I am interested to hear what people have for their credit limits though. I see a quote of most having <£500... I have £2600, am I unusually high? I wouldn't mind seeing it increased though I must say!

knickth

dooooooooooooooooo

rinkydinkpanther

My credit limit is £4800. Is this high then for Egg Money ? This is my first credit card, so I don't have anything to compare it to.

lisyloo

Yes limits tend to be low because it's designed to be pre-loaded when you get paid and not used as a traditional credit card.
I got £15K with Egg Visa but £3K with Egg Money.
I have gradually increased it to £4K but slowly and over a period of time and my requests have been accepted.

sicker

My credit limit is £5000, quite handy for cash back on costly purchaces.

lisyloo

That's unsual and I think it's the max.
However people can still get cashback on large purchases by pre-loading the card so you don't go over your limit.
e.g. If you want to spend £2000 and only have £1000 limit then you need to pre-load £1000, but you'll get the £20 cashback.
I have done this before.
Total spend should be <= credit balance + credit limit
Bear in mid that hire car companies and hotel companies may put a "reservation" on your card, so you need to include any amount that might be "reserved".

DesG

My Egg money limit is 7000 and I know there a few on here that have higher.

But I assume they will have to now re-visit credit limits as their arguement about pre-loading doesn't apply any more.

I would be happier seeing them lift the £200 limit on annual cashback myself.

Cheers, Des.