Egg announced they are launching a new credit card. Well, in actuality it is a re- launch of premium plastic cards with better rewards and benefits than they have offered in the last year. Egg Money World MasterCard is providing 1 percent cashback on all transactions. There is going to be a 1 pound a month charge.
This is just the tip of the iceberg when it comes to new credit cards charging a fee. Egg is not asking for a huge fee, as it comes to 12 pounds for the year, but other cards will be asking for a higher annual fee.
At the moment only 7.3 percent of credit card issuers are charging an annual fee which runs from 12 pounds to over a hundred pounds. There are benefits to the annual fee. For example some cards will not charge interest if their annual fee is high. This saves the person from paying a variable interest rate, but if they pay the card off it really doesn’t help.
Experts believe that Egg is trying to encourage consumers to change credit card companies. By offering a small annual fee with rewards they are in a better situation than a card with no annual fee and no rewards. The consumer will have to determine whether they believe it is actually worth it to change cards. There is a risk of being turned down, which hits the credit record. Still, with the card offering a life of the balance transfer deal at 8.9 percent and a 16.9 percent on purchases it does look like a nice card. There is purchase protection and a range of discounts offered with the card as well.
The only way to tell if the credit card from Egg is worthy is to compare it to others.
