Would you pay to carry your Egg credit card?
Egg, which is now owned by Citibank, has today revealed the reintroduction of an annual fee in relation to the Egg credit card. Those who take the company's new "cashback" credit card will be charged £12 a year although the company believes that the benefits attached to the card will outweigh this annual fee.
Egg is the first company to reintroduce credit card annual charges and there are concerns that other credit card companies in the UK will be forced to follow suit. Competition over the last few years saw the withdrawal of the basic annual charge but with times hard and growing bad debt it looks as though credit card companies will be asking the consumer to pay-up again. While the Egg credit card gives a 1% cashback on all purchases and a number of promotional and discount offers with certain retailers, experts have predicted you would need to spend £1,200 a year on the card and pay your outstanding balance on time before you would start to benefit.
It will be interesting to see how the market reshapes over the next few weeks and months although now that Egg has broken the mould it seems that the rest will follow.
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