Egg Credit Card Loophole

Hello! Have't seen you 'round here before! You may want to subscribe to my RSS feed so as to keep up to date with money saving tips and product reviews, or you may wish to view the main Mungo Money website for UK Credit Cards, Personal Loans and Savings Accounts. Thanks for visiting!

If you are an Egg card holder and signed up for this card in its heydays of low interest rates and attractive cash back policies then you are in for a shock. These attractive offers changed long time back and you need to be very alert to understand the loophole in some of Egg’s offer to understand and the Anniversary offer can either get you a zero interest deal or become an expensive deal.
The card we are referring to is the first product offering by Egg, so Egg Money card holders can skip this article. The offer includes an interest free period for five months and also a nominal charge of 2.5% on transferred amounts. The catch is when you use the card for OTHER purchases which still attracts the full 16.9% interest rate and that takes the people through a complicated trap.
Each time you make the a payment, it first pays off your transferred amount while accumulating the amount of new purchases….it is quite likely that you will be stuck on a 16.9% interest rate. Each time you transfer another debt, it comes back with the 16.9% interest rate. However, there are ways to get out of this cycle and that requires juggling Egg’s balance to any other card, and when the offer for transfer comes up….transfer it back to Egg and enjoy the 2.5% interest rate!

You can even use your bank account to transfer your debt and pay it off with your savings and then transfer the balance to the account at 0%. However, the 0% does not last for ever….in fact; it is for five months only. This shuffle is not applicable to the Egg card only. Use it on any other card and you will be surprised at the savings you can get. In fact this is the common modus operandi of tarts and those struggling to get credit can also use this as a somewhat cheaper way of getting money.

This loophole of the Egg card is now commonly known and there is no knowing when it might go off-air. However, as an end user, it is beneficial to have a range of credit cards in your name and pitch one card’s 0% interest offer or low cost balance transfer with the current card in use. the amount of savings may not be all that high if you are spending on credit card is limited and in that case you don’t really have to worry about the credit card debt anyways.