Egg interest rates HIKE!!!!!

Moggles_2

[FONT=Arial, Helvetica, sans-serif]To say I am gutted is an understatement as I have just moved to Egg from MBNA [/FONT]

Yes, but you are not affected until December so, unlike many, you have 3 months notice to do something about it.

Competition is intense and the card companies need to attract customers with offers and incentives, but we're just account numbers to them. Once you realise that, you'll be able to forget loyalty and exploit them with a clear conscience

I know you're on 0% at the mo, but that was due to end in December anyway. If you don't normally pay off your balance each month, you were already forking out quite a bit of interest unnecessarily. If this latest interest rate rise spurs you to tackle that, Egg has done you a favour, IMO.

For tips to improve your chances of credit card acceptance, have a look at the *Credit Rating: how it works and how to improve it guide* especially Martin's *Manage and Improve your credit score* article

http://www.moneysavingexpert.com/banking/credit-rating-credit-score#improve

Do you bank with HSBC, NatWest or RBS?
If not eligible for their cards, a no-strings 13 months at 0% is currently available to new customers from Halifax on balance transfers made in the first 90 days. There's a 3% BT fee. IME, and from feedback here, credit limits are generous and the minimum monthly payment is just 1% of the balance shifted.

http://www.halifax.co.uk/creditcards/pluscard136.asp

To help you further, we would need to know which cards - besides Egg and MBNA - you have at the mo or have held recently.

eschaton

If you are trying to repay your debts then what is the problem ?

After 0%, lock in at 17.9% and repay.

Some people seem to get so excited over nothing.

MerseyLad

lisyloo wrote: »

Can you justify this?
e.g. provide figures for wholesale banking rates and costs of employment etc.

Just sounds like figures you've pulled out of the air to me with no knowledge of the costs associated with running a banking buisiness, just to suit your argument with no basis in fact.

I NEVER at any point claimed it to be "Fact". It is my opionion and this is an open forum for help and opinions.
No I dont have the full details of associated costs.

It was merely a figure I gave based upon my adult life paying interest at somewhere between those rates.

So, step off your high horse and join the rest of us on terre ferme.

MerseyLad

Moggles wrote: »

To help you further, we would need to know which cards - besides Egg and MBNA - you have at the mo or have held recently.

MBNA currently being closed. Balance was at £7k with an £11300 limit.
Capital One - Open but account frozen at my request. No card, just paying the balance of £4000.
Cahoot - Now closed as of March 2009.
Co-op Visa - Closed in excess of 8 years ago.
Sony Visa - Closed over 10 years ago.

Thanks for being so helpful. :T

Moggles_2

MerseyLad wrote: »

MBNA currently being closed. Balance was at £7k with an £11300 limit. Capital One - Open but account frozen at my request. No card, just paying the balance of £4000. Cahoot - Now closed as of March 2009. Co-op Visa - Closed in excess of 8 years ago.
Sony Visa - Closed over 10 years ago.

Do you bank with NatWest or the Royal Bank of Scotland? A 0% for 15 months BT card is available to existing bank account customers at the mo.
(HSBC has a similar deal for current account holders, but customer service is not so good, IME)

If you're not eligible for the above, 13 months at 0% is currently available to new customers from Halifax on balance transfers made in the first 90 days (For details, see #12 above).

Alternatively, with the Post Office card, you'd get 12 months at 0% on BTs made in the first 3 months. There's a 2.98% BT fee. Also, 5 months at 0% on new balance transfers requested in the month of your 1st and 2nd anniversary

http://www.postoffice.co.uk/portal/po/jump2?catId=19400177&mediaId=34100665

Very best
M

MerseyLad

Hi,

Many thanks for your help and advice.

I am just very weary having been declined for an Abbey card in June.

I have since started a new phone contract, and bought a new car and insurance. So that is 3 further credit checks in 2 months.

I have began to close all credit accounts and current accounts that I no longer need in an attempt to reduce my maximum credit allowance and an MBNA card with a £11300 limit will be closed in the next few weeks.

Will that impact on me?

Or have I just been unlucky with Abbey? [Thats the 1st time Ive ever been declined credit]

Thanks:T

lisyloo

It was merely a figure I gave based upon my adult life paying interest at somewhere between those rates.

Hi MerseyLad,

Things have changed quite substantially which you probably now realise.
It is not safe to assume that the past will continue in the future.
I'm not on my high horse now, I am honestly trying to help.

You took on debt assuming insterest rates would stay the same and they didn't.
Banks do have some valid reasons for putting up rates (and probably some non valid ones like making more profit as well).
So I would suggest that in your financial dealing in the future that you don't assume things are going to stay the same with regard to interest rates, stock market returns, tax legislation, allowances or anything else. These things can and will change.

I'm not trying to be clever or score points, but I think it would help you in future if you take the point on board.
As an aside 3 million people got this wrong with endowment mortgages and the whole industry by assuming stock market returns would stay constant when they fell substantially, so it's not a unique mistake, but one that you need to take on board for your own benefit.

There are various ways to make plans to cater for changes.
One example is getting fixed rate borrowing.
Another is to have contingency in your budget to allow for increases.

kilcoobin

I too got this email, raising my rate to 29.9% My query is if I decide to opt out of this increase, and cancel the card and pay off at the current rate, can I eventually do a balance transfer to another card or does the debt need to be "live" to do that? If that makes sense??

nick1977

I'm sure you could transfer the balance to another card at a later date.
As far as Egg is concerned, they really only see the money coming in as a payment. They're not bothered whether it's you paying off the amount or another card company.
Only limitation is any other banks in the same group would not let you transfer between one and the other. Avoid them and there should be no issue.

Nick

frugallass

Mine has increased to 29.9% too so have just opted out and will pay off the balance at the current rate (which isn't much better but hey ho)