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By Julia Kukiewicz
Staff Writer
Tuesday, 5 August 2008
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 review of the Egg credit card here.
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EGG’S innovative credit card has been saving consumers money for almost 10 years now and is arguably the most recognised – not to mention most popular – of all UK credit cards.
However, from the muted coverage in the press, you may have missed that there is some sort of credit crunch going on and the cost is bound to get passed on to cardholders so forgive us for keeping an eye out, even on our closest friends.
On the 4th of September there will be a number of changes made to the Egg Money credit card and they might end up costing you.
The Changes
There are three areas of change:
- Firstly, cash withdrawals. These will now incur an interest rate of 16.9% and a fee of 3% will be charged on cash withdrawals, balance transfers and gambling transactions over £3.
- Secondly, interest on purchases. The Egg Money card will charge 12.9% APR on purchases up from 7.9%.
- Finally, foreign-currency conversion. The fee charged to convert your cash will increase from 2.65% to 2.95% of the value of each purchase.
What does it mean?
There are a few reasons why you might not be exactly egg-static about the changes to the Egg credit card.
They mean that every time you withdraw cash you’re slapped with an interest rate higher than the market average and a fee which is now the highest in the UK.
The foreign-conversion fee is also now higher than the average, making the Egg card largely unsuitable for use overseas. For this job we prefer the Post Office Classic credit card which charges no foreign transaction fee at all.
Time to jump ship?
Despite all this it’s not necessarily time to abandon the Egg Money card just yet.
The Egg Money credit card pays 4% AER on credit balances meaning that you can earn from it even if you’re in credit.
It also still pays 1% cashback on all retail spending. That’s a deal only exceeded by rates for big spenders.
However, if you don’t always pay off your bill at the end of the month or you need to withdraw cash often (or ever) Egg’s changes mean that this isn’t the right credit card for you.
We suggest you compare credit cards to find your wallet a perfect partner.
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