Egg Money automatic CL increase!

Penelopa.Pitstop

Lisyloo I pay for holiday by credit card anyway and I know some of the companies charge for credit card payment. So in worst case scenario I will be able to redeem some of the fee via cashback. Before I had too low limit to use the card for monthly spending and put holiday trip on top of it. I used different card for holidays.

Be warned, this is how I ran up £47,000 worth of credit card debt. Each November, I'd get a letter from the various companies saying that as I was managing my account so well, they'd decided to increase my limit.

The point is to make the use of credit card for personal gain rather than allow bank to make money from interest. As a couple we use 5% of our available credit for montly spending and we pay it back in full every month.

Madison

Penelopa.Pitstop wrote: »

The point is to make the use of credit card for personal gain rather than allow bank to make money from interest. As a couple we use 5% of our available credit for montly spending and we pay it back in full every month.

As did I, for many years but all of a sudden things spirraled out of control. Hindsight is a wonderful thing.

co123456

I'd like to see automatic increases banned. I set my EM limit relatively low so that I have a higher chance of obtaining more profitable credit elsewhere (e.g. 0% deals). The way I see this is that by upping my limit, the credit card company is preventing me from obtaining bigger credit limits from their competitors, and therby reducing the amount of potential profit their competitors can make. In other words, unfair competiton.

Eydon

cheeryoleary wrote: »

I'd like to see automatic increases banned. I set my EM limit relatively low so that I have a higher chance of obtaining more profitable credit elsewhere (e.g. 0% deals). The way I see this is that by upping my limit, the credit card company is preventing me from obtaining bigger credit limits from their competitors, and therby reducing the amount of potential profit their competitors can make. In other words, unfair competiton.

And as I said above, Egg give you the option of opting out of automatic credit limit increases. All you have to do is send them a secure message.

To be honest, I've never minded having my limit increased and if an organisation makes it clear how you can opt out if you want to then all the better. At the end of the day, all they are saying is "this is how much we are prepared to lend you". It's still up to me whether I actually borrow that money or not.

co123456

Eydon wrote: »

And as I said above, Egg give you the option of opting out of automatic credit limit increases. All you have to do is send them a secure message.

I don't like the idea of having to opt out for something. If I want it, I'll ask for it. It the wrong way round in my opinion. Only increase credit limits if a) customers ask, or b) acceptance from the customer is obtained first.

Instead of having an option of opting out of future credit limit increases, how about an option for opting in?

Eydon

cheeryoleary wrote: »

b) acceptance from the customer is obtained first.

I'm not disagreeing with you, but technically they have obtained your consent first - the bit in the T&Cs which says they can vary your credit limit whenever they want.