Dormant credit card charges - Egg, Lloyds, Santandar, Amex

Gordon_the_Moron

Paulgonnabedebtfree wrote: »

I'm wondering what a more precise definition of "not used" is.
I have decent LOB deals with a couple of those cards listed. I have little choice but to regard it as long term borrowings as I'm only making extra payments to my higher interest debts. I don't used the cards with LOB deals for purchases as that would trap debt at a higher rate because it gets paid off AFTER LOB deals. However, each month they get the minimum payment from me and there is an interest charge.
Now if they are going to play silly bug gers and start charging me for not making any purchases, I will play silly bug gers and go into a supermarket every few months and buy a Mars Bar or similar with a credit card (large supermarkets are more flexible about small purchases witrh a CC).
Of course, they may count the interest charge and minimum payment as "usage" in which case no problem.

If you go in Tesco where they have self service checkouts (it may work at other supermarkets self service tills but I have not tried it) you can pay part of the balance cash and part with a card, so if you buy a Mars bar for 50p you could put 49p in coins into it then pay 1p on the credit card. Now that is playing silly !!!!!!s but you truly are trapping the smallest amount of debt possible at the higher interest rate

You can do the above at a non self service checkout in most places as they can do a transaction as part cash and part card but I'd feel a bit of a tit telling the checkout operator I wanted to pay 1p of the balance with my credit card :rotfl:

marksoton

Paulgonnabedebtfree wrote: »

I'm wondering what a more precise definition of "not used" is.
I have decent LOB deals with a couple of those cards listed. I have little choice but to regard it as long term borrowings as I'm only making extra payments to my higher interest debts. I don't used the cards with LOB deals for purchases as that would trap debt at a higher rate because it gets paid off AFTER LOB deals. However, each month they get the minimum payment from me and there is an interest charge.
Now if they are going to play silly bug gers and start charging me for not making any purchases, I will play silly bug gers and go into a supermarket every few months and buy a Mars Bar or similar with a credit card (large supermarkets are more flexible about small purchases witrh a CC).
Of course, they may count the interest charge and minimum payment as "usage" in which case no problem.

In which case the cards are not appropriate for what you want !

What is the point of a cashback card you don't spend on ?

Paulgonnabedebtfree

marksoton wrote: »

In which case the cards are not appropriate for what you want !

What is the point of a cashback card you don't spend on ?

Cashback??????
Who said anything about cashback?
Have another read I think

marksoton

Paulgonnabedebtfree wrote: »

Cashback??????
Who said anything about cashback?
Have another read I think

Amex and Egg, both of which are cashback cards.

And even without the cashback element my point still stands. Why would you have a card and not use it ?

If it's for emergency use just put a few things on it every now and again. Not difficult is it.....

And with all due respect if you have a LOB deal on these cards then you are in a pretty poor negotiating position anyway.

Paulgonnabedebtfree

marksoton wrote: »

Amex and Egg, both of which are cashback cards.

And even without the cashback element my point still stands. Why would you have a card and not use it ?

If it's for emergency use just put a few things on it every now and again. Not difficult is it.....

And with all due respect if you have a LOB deal on these cards then you are in a pretty poor negotiating position anyway.

I really don't get your point.
The cards are totally appropriate for what I currently need. I wanted longish term borrowing with lowish repayments at a reasonable fixed rate. That's what I've got. I wasn't aware of Egg being a cashback card. It wasn't a cashback card when I first took it out many years ago. As for Amex, I don't have one of those.
I have other cards which are for emergency use - ones with no balance and no promotional deals on them.
The debt I have with higher interest gets the minimum payments plus any extra I can afford. The LOB deals get attacked after that in descending order.
If a card is being used for borrowings in an LOB deal, spending on it traps higher rate debts as they are repaid AFTER the LOB deal is paid off.
That seems to me to be a very good reason for having a card and not spending on it.
I know my finances are not good at the moment but since I got to that point, I am managing it pretty well.
I stand by my original point that if I am forced to make a purchase every few months in order to avoid charges, then I will spend a few pence every few months.
What would you have me do differently then?

lisyloo

Why would you have a card and not use it ?

I only have one card that I use all the time BUT...

.....one potential reason is for business expenses.
Lots of us are expected by employers to put business expenses on credit card.
Some people may not travel frequently but need to facility.
Booking a hire card without a credit card is very difficult because they want the facility of taking a deposit (sometime circa £500).
Similarly hotels want a facility to charge.
I would guess that ultimately employers will need to act or pay for card fees if people can no longer provide this facility.

marksoton

lisyloo wrote: »

I only have one card that I use all the time BUT...

.....one potential reason is for business expenses.
Lots of us are expected by employers to put business expenses on credit card.
Some people may not travel frequently but need to facility.
Booking a hire card without a credit card is very difficult because they want the facility of taking a deposit (sometime circa £500).
Similarly hotels want a facility to charge.
I would guess that ultimately employers will need to act or pay for card fees if people can no longer provide this facility.

In which case the best thing you can do is make it work to your advantage. Get a cashback card.

Dormancy fees only apply if you don't use the card anyway.

marksoton

Mozette wrote: »

Egg money is a cashback card, the "ordinary" Egg card isn't.

Yes and Dan referenced to cashback.

Paulgonnabedebtfree wrote: »

I really don't get your point.
The cards are totally appropriate for what I currently need. I wanted longish term borrowing with lowish repayments at a reasonable fixed rate. That's what I've got. I wasn't aware of Egg being a cashback card. It wasn't a cashback card when I first took it out many years ago. As for Amex, I don't have one of those.
I have other cards which are for emergency use - ones with no balance and no promotional deals on them.
The debt I have with higher interest gets the minimum payments plus any extra I can afford. The LOB deals get attacked after that in descending order.
If a card is being used for borrowings in an LOB deal, spending on it traps higher rate debts as they are repaid AFTER the LOB deal is paid off.
That seems to me to be a very good reason for having a card and not spending on it.
I know my finances are not good at the moment but since I got to that point, I am managing it pretty well.
I stand by my original point that if I am forced to make a purchase every few months in order to avoid charges, then I will spend a few pence every few months.
What would you have me do differently then?

I can't disagree with your plan.

My point really was that i don't understand people who hold a card ( no LOB or anything ) don't use it and then complain when a dormancy fee is levied.

It really isn't much effort to avoid these fees.

lisyloo

My point really was that i don't understand people who hold a card ( no LOB or anything ) don't use it and then complain when a dormancy fee is levied.

It really isn't much effort to avoid these fees.

It is a bit of a hassle.
Let's suppose you have 2 cards - one for personal and one for business.
It makes a lot of sense to keep them seperate and you need the additional limit for business travel.
Suppose you don't travel for a few months.
You have to keep remebering to use the "business" card so you don't get a dormancy fee.

Personally I'll be doing what suits me and my employer will have to find a way to sort out expenses.
So for example - they will either have to provide a business card, pay dormancy fees (if they want me to have a seperate card) or face the problem of me not having a big enough limit for business & personal expenditure.
Really it's their problem, but it's not an uncommon one.

marksoton

lisyloo wrote: »

It is a bit of a hassle.
Let's suppose you have 2 cards - one for personal and one for business.
It makes a lot of sense to keep them seperate and you need the additional limit for business travel.
Suppose you don't travel for a few months.
You have to keep remebering to use the "business" card so you don't get a dormancy fee.

Personally I'll be doing what suits me and my employer will have to find a way to sort out expenses.
So for example - they will either have to provide a business card, pay dormancy fees (if they want me to have a seperate card) or face the problem of me not having a big enough limit for business & personal expenditure.
Really it's their problem, but it's not an uncommon one.

Is it really that much hassle though ?

I have daily business expenses, and i would imagine most who have expenses do too. The dormancy fees are only being applied in cases where the account has not been used for months on end. Not a likely scenario for most.

These fees would appear to have been introduced so the lenders can reduce their potential exposure by giving a disincentive to unused credit. It maybe a pain in the backside but thats all it is. It's one of the few times i do think the banks are justified in levying a fee.