Egg Policy Change ?

lisyloo

Article on bbc news

http://news.bbc.co.uk/1/hi/business/7222336.stm

I note that the picture is a "Egg Money" card but I wouldn't read too much into this.

YorkshireBoy

Psiloman wrote: »

YorkshireBoy, whilst agree with what you are saying I think there is the 3rd Category as outlined by Sarah, which I definately fall into i.e. someone who's credit card makes no money for Egg/Citi!

You mean a dormant account? Even a dormant account has the potential to make Egg money if they write to serve notice that unless you use it it will be closed.

Rather than close such (previously well-managed) accounts, in such a situation they could lower your credit limit to free up some for new customers. That would allow them to increase their customer base without additional exposure to potential bad debt.

Psiloman

How annoying now they're saying we are bad customers to the media!!

Psiloman

Sorry YorkshireBoy I mean an account that attracts no interest because the full balance is paid each month

slowe

Hmm - why don't they just say they are only keeping customers who make them money - i've never missed a payment - pretty hard to when on direct debit and i've certainly never gone above my credit limit. A bad cop out press release if you ask me. I'm trying to find another card to transfer my money to so i don't have to pay them any interest.

DuWolf

Credit cards are to be withdrawn from 161,000 Egg customers who the company believes to be increasingly risky. The provider is writing to 7% of its customers to give them 35 days notice of the withdrawal.
Cardholders will still be able to continue with minimum monthly repayments but will not be able to use their card after the deadline.

Strange that my credit score hasnt changed since i started my account with them ... never missed a payment ... use few times a year .. balance always £0 before using again

YorkshireBoy

Psiloman wrote: »

Sorry YorkshireBoy I mean an account that attracts no interest because the full balance is paid each month

Yes, but don't forget the merchant fees they receive when you use your card, and other cross-selling opportunities you present them with.

YorkshireBoy

DuWolf wrote: »

Strange that my credit score hasnt changed since i started my account with them...

Further proof, as if further proof was required, that CRA credit scores are entirely worthless!

Psiloman

YorkshireBoy...ok I forgot about that so my total spend on my Egg Card (Sad individual who uses MS Money to track all finances!) was £16K...all paid in full, on time, with no interest charged but with cashback for me and the mangement costs met by Egg (as an early adopter I remember when we used to get descent cash back) verses their transaction fees...probably still makes me a 'bad customer' )

Nancy888

It's not just your credit score you need to take into account: it's the total exposure to debt that you have.... Has anyone taken out other cards/mortgages/loans since taking out their egg card?