Egg Anniversary Period

jrm

Hi All. My anniversay period if coming up and in anticipation of this I emailed Egg. They have told me that there is now a 2.5% handling fee with no upper limit. Mine is one of the cards taken out about 18 months ago. Does this mean the Egg CC and the anniversay period is now of no benefit to me. Thanks.

YorkshireBoy

jrm wrote:

Does this mean the Egg CC and the anniversay period is now of no benefit to me.

That depends...

If you're a stoozer, then the answer is almost certainly yes.

However, if you're managing real debt, and you don't think your credit rating is such that you'll be able to get another 0% card elsewhere, then you may feel that a 2.5% fee for 5 months of 0%, and no credit search, is a price worth paying.

BTW, if you plan to stay with Egg, you might want to consider registering an e-mail address with them. They were notifying customers of this 2.5% fee back in March this year.

Milarky

'2.5%' over five months is 2.4 (12 months over 5 months) times that (6%) 'per annum'.

Minimum payments (of 2% x 4 payments) over five months average the '0% balance down too - by about 2 payments worth or '4%'

Therefore, in reality, about: 1.04 x 6% = 6.25% pa

In addition the fee is subject to a standard rate of 15.9%

15.9% pa x 2.5% is about 0.4% pa (the fact that the period is 5 months and not 12 makes no difference here, you'll note)

Therefore the effective rate is about

6.25% pa + 0.4% pa = 6.65% pa