Egg Credit Card Review

Egg Credit Card

Internet Based Credit Card

I had always just assumed that student credit cards had a lower rate of interest. So I was quite happy with my Lloyds TSB Asset Mastercard until I happened to LOOK at the statement and see I was paying around 16%. As I had almost a grand on it I realised that I could get lower rates elsewhere with no annual fee. Why? Because of Egg's extensive publicity campaign. I was well aware that they gave 2.5% APR for Balance Transfers for the first 6 months and then a highly competitive interest rate of around 10% because the company had successfully and thoroughly promoted themselves as an affordable credit card provider!

So I went to the Egg website, somewhat unsure I would get a card as I was a full time student with mounting debts, but I was given online approval. The site said they would send me the agreement. So I waited. And I waited. After 3 weeks I decided it wasnt coming. I was a bit wary of re-applying, in case they sent me two or if any other such problems occurred. However I reapplied online, going through the questions again and I received approval again. This time I received the agreement. I sent it off and received the card pronto. I then had to activate it online.
I tried this many times but each time I did it it said that there had been an error. I thought that I should ring Egg but I was wary because it makes it quite clear on the website that if you ring the company about something that could be dealt with or answered online then they will charge you a £2 administration fee. This sounds a bit hard, but they are an internet-based company and that is how you get the most competitive rates. However in the end I asked a friend who worked at a shop to test my card by swiping it, and it turned out to be active. Relief!

I have not used my card in a shop yet because I am avoiding building my debt, but there are LOTS of incentives to shop online using the card. Firstly you have a guarantee that you are not held responsible for any money lost on purchases online. So if your services don't turn up etc. then Egg assure you you don't have to pay a penny yourself. This is a relief, especially as you don't always know who exactly you're dealing with out there in that world wide web. In addition to this, you receive 1% cashback for purchases online and 2% cashback on purchases made thorugh companies linked to the Egg Shop accesible through their website.

To keep costs low egg is an internet-based credit card. You can check your credit card balance, statement and transactions and make payments, balance transfers etc. online. You must make payments by direct debit which you must up online, and you must set the direct debit up so a payment is taken each month that you have a balance on your credit card. If your payment is late or is not received they will charge you £20. That makes someone as naturally disorganised as I am a little bit worried, but direct debits don't often fail. All I recommend is to be aware!

Unfortunately, in addition to the problems I had getting the card and getting it started, I have had some problems in using the site to make additional payments. I went onto my account the other night trying to make a pyament of £8 (not much but every bit helps) but it wouldn't accept my transaction at that time. This can be dealt with by emailing the company but it is quite irritating especially when you want to cut your balance so you cut the interest you pay. This was the first time I tried to make a payment and hopefully it will work for me later!

Other than that, egg give me a highly competitive interest rate and a low balance transfer rate for the first 6 months. I recently read the deal had been changed to 0% although I'm not that up to date. They took my first payment on time, so everything's basically working and I'm happy. I would recommend the company, because I think low interest rates and the ability to view your balance online are very important factors in a credit card, and as we march into the 21st century an internet-friendly card is a very important weapon in today's booming e-commerce.