the new egg money card

creditcardking_2

I applied for this new egg card and I was approved, they didn't even do a credit search, not with Experian anyway. I already have an Egg card , maybe they dont have to do a search if you hold accounts with them.

M_Thomson

creditcardking wrote:

I applied for this new egg card and I was approved, they didn't even do a credit search, not with Experian anyway. I already have an Egg card , maybe they dont have to do a search if you hold accounts with them.

How do you know they won't do one in the next few days? It isnt always instant.

creditcardking_2

M_Thomson wrote:

How do you know they won't do one in the next few days? It isnt always instant.

I applied for this card a few days ago, I have always found that when I apply for cards online and am given an instant decision, a credit search will show up immediately on my Experian Credit Expert Report.

charlie12

creditcardking wrote:

I applied for this new egg card and I was approved, they didn't even do a credit search, not with Experian anyway. I already have an Egg card , maybe they dont have to do a search if you hold accounts with them.

Interesting, this indicates that the % rate and credit limit you're given is based solely on what Egg have on you, including info from their original credit search, how you've managed your current Egg card, etc.

If you've already got an Egg card, you only need to give them updated salary info to apply, so it's quite possible that there is no need for a credit search. It sounds similar to their credit limit increase procedure, where they ask for salary info but do not perform a credit search.

YorkshireBoy

charlie12 wrote:

It sounds similar to their credit limit increase procedure, where they ask for salary info but do not perform a credit search.

Don't make any decisions based on this theory - they searched me recently when I asked for a credit limit increase on my Egg Green.

charlie12

Ah, ok, thanks for the info

Caped_Avenger

The one problem i can think of with this card is if i use it to replace my debit card completely, i can't get cashback (ie actual hard cash, not the 1% bonus) at retailers any more, since it's a credit card. I'll have to go to ATMs instead. Only a minor downer on an otherwise fantastic proposition though.

Unless i can find more places like my friend's local pub who just put cashback through as part of the transaction if it's on a credit card. :cool:

Caped_Avenger

Also, in the small print of Egg Money, it says:

When you have a positive balance you will earn interest at the rate of 4% gross pa/AER variable. The gross rate is the contractual rate before deduction of tax at the rate specified by law. AER is the Annual Equivalent Rate (contractual rate when paid and compounded each year). Interest on positive balances is paid daily

An AER is only the same as a gross p.a. if the interest is only passed once per year, whereas it says credit interest is paid daily.

Any ideas anyone? Yolk ??? Any insight?

YorkshireBoy

Caped_Avenger wrote:

An AER is only the same as a gross p.a. if the interest is only passed once per year, whereas it says credit interest is paid daily.

Some more text - this time from the credit agreement...

"12. INTEREST ON CREDIT BALANCES

12.1 We will pay you interest calculated on a monthly compound basis on the cleared end of day credit Balance on your Account at the rate from time to time applicable to your Account. This means that interest will only be earned on interest added to your Account from the next statement date. We will tell you the interest rate when you apply for a Card and details of our current interest rates are available on https://www.egg.com. We may vary this interest rate from time to time in accordance with Condition 19.1.

12.2 Interest earned on your Account will be paid into your Account daily but will be shown on your Account in your monthly statement as a single amount added to the Account on the statement date."

However, it says more or less the same thing, ie interest accrued daily and credited at statement date. But the fact remains that, as you say, you cannot quote identical Gross/AER when interest is paid monthly - unless I'm missing something obvious? (but then again it's late!).

innovate

innovate wrote:

Me neither, so they can't be too keen to get customers! I think I might have got turned down because I just got two other credit cards over the last month, and I also changed my current account in July. Or may be they are after the under fifties. I have asked them to let me know why they have turned me down but I am not holding my breath for an answer.

Well, I should have been more confident - they did almost instantly respond and whilst I never could find out why my application had been turned down, I now got my card, and with a very decent credit limit, and 6.9% for overdrafts, too! Am quite impressed how approachable and responsive Egg are.