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

leapingtoadstools

I am confused. I'd like to get the Egg Money cashback card, purchase everything I buy with it, and pay it off in full by direct debit every month. I know I have to pay the £1 monthly fee, but will I get the 50p charge as well? I have read the other posts but I am still confused!

knuckledragger

As a holder of one of the original EGG cards, I used to like getting my annual cashback deposited in my current account (balances PIF every month obviously). Looks like I'm going to have to source another "cashback" credit card which doesn't charge a monthly fee...

withnell

leapingtoadstools wrote: »

I am confused. I'd like to get the Egg Money cashback card, purchase everything I buy with it, and pay it off in full by direct debit every month. I know I have to pay the £1 monthly fee, but will I get the 50p charge as well? I have read the other posts but I am still confused!

Interest, if charged, will be a minimum of 50p.

If you pay off your card balance in full each month, you will not pay more than the £1 monthly fee (so £12 total charge for the year)

leapingtoadstools

Thanks Withnell. OK that makes sense now. Does anyone know how easy it is to set up a direct debit to pay off the full amount every month? Do they offer that as an option or would you ring them to arrange this? Sorry for all the questions!

lisyloo

marksoton wrote: »

Is it really that much hassle though ?
I have daily business expenses, and i would imagine most who have expenses do too.

In my company we go away once or twice a year.
I think it's a bit of a hassle as I'd normally max out my cashback card, but I'd need to remember to take and use the business one every now and again.
I try to minimise the amount of cards I carry for ID, theft and fraud protection, so I don't always carry all my cards with me.

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.

In my industry (IT) it's quite common for people to install software on site at the end of a project, which might be say 6 months long.
So in that type of job, yes infrequent travel is common.

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.

I don't disagree.
I think what the banks are doing is entirely justified.
I think it's the employers expectations which are now wrong as they appear to think everyone has access to easy credit, which is no longer true.

MarsdenCuckoo

Whilst I don't agree with the principle, it's fairly easy to overcome/avoid and better than the other option i.e. cancellation for non-use.

If you have credit facilities in the current climate - protect them!

withnell

leapingtoadstools wrote: »

Thanks Withnell. OK that makes sense now. Does anyone know how easy it is to set up a direct debit to pay off the full amount every month? Do they offer that as an option or would you ring them to arrange this? Sorry for all the questions!

I don't know about when you first get the card, but I changed the DD online for my card recently and it took seconds