Egg Money question

KiKi

Hello everyone

What a nice community it is, here! And seeing as everyone's so nice, I'm hoping someone might have a quick answer to what is in all likelihood a very stupid question.

I have a Barclaycard, currently. I always pay it off in full every month, and so do not incur any interest; I make a purchase, receive a statement each month, pay off the balance by the Minimum Payment date, and that's it.

In investigating an Egg Money card, it seems that you pay interest from the date of the purchase, rather than from the date that you are supposed to make a minimum payment. *Then* if you pay it off in full at the end of the month, you get the interest that you incurred credited back to your account. Is my understanding correct? Or am I completely incapable of deciphering their T&Cs?!

(The latter is very possible.)

I completely understand the charging it up, getting interest on a positive balance bit, my 'interest' (bad pun) is purely in its use as a credit card. If anyone uses the Egg Money card and is able to explain and lessen my stupidity, I'd be very grateful.

Cheers

CLAPTON

All credit card charge interest from the date you made the purchase.

And all credit cards make an exception that if (and only if ) you pay the full amount by the due date then they don't charge any interest.

So egg money is exactly the same as your barclaycard. It may be phrased slightly diffferently but they work exactly the same for purchases as a credit card.

KiKi

Thanks for your help, Clapton, much appreciated.

I didn't realise that that's what all credit cards do; the way EM phrased it, it sounded like it was doing something different...!

Thank you for the info.

sicker

And Egg Money pays you cash back on the amount you spend so as long as you clear the balance each month you will get a bonus each March when the cash back is paid to you.

John

KiKi

Well, extra cash is always welcomed! Thank you for the info.

Can I ask - when selecting a payment option, I said "pay off in full every month" - will it automatically DD my bank account to do that, or do I have to actively pay it myself, like with a Barclaycard? It wasn't clear on their site (not that I could find, anyway!)

stuzhunter

KiKi wrote: »

Well, extra cash is always welcomed! Thank you for the info.

Can I ask - when selecting a payment option, I said "pay off in full every month" - will it automatically DD my bank account to do that, or do I have to actively pay it myself, like with a Barclaycard? It wasn't clear on their site (not that I could find, anyway!)

Yes if you select this option,the full balance of your statement will be taken by direct debit each month and you will never pay any interest.

KiKi

Cheers mate.

DesG

Just a Caveat, check and double check that it is set up in online banking to pay off the full amount.

A few people have reported that they requested 'Pay off full amount' when applying, but the account was setup to only pay off the minimum.

If you don't spot it in time, you will end up paying interest.

Cheers, Des.

M_Thomson

CLAPTON wrote: »

And all credit cards make an exception that if (and only if ) you pay the full amount by the due date then they don't charge any interest.

There are some that charge you interest even if you pay it off in full every month. From memory, the Halifax flat rate card does this.

KiKi

Yes, thanks - I saw the other thread. First thing I shall do is check that!

One more question if anyone can help - I haven't heard back about my application. I called to ask why. The guy (very nice, yummy Scottish sccent) said that the first checks had thrown up some issues, so they were doing further security checks?!?! Does anyone know what these comprise??

I have a spotless credit record, already hold a debit card, credit card, a mortage, and have never ever had a problem applying for anything before. I had two mortages for a while last year, but that shouldn't matter, I don't think.

I can't imagine why they'd need to do any further checks, it's gotten me a little worried!

DesG

I would invest 2x£2 in getting your credit reports from Experian and Equifax just to make sure there is nothing strange on them.


Cheers, Des.