Foreign Perspectives

Although they can be annoying, it does seem to be a good sign that the people trying to sell you credit cards are back in the shopping centres again and those annoying teatime calls trying to do the same have restarted too.

I imagine that there are all kinds of grand things that the economists are saying these days about when we should be starting to get out of this recession but I think the banks trying to push more credit onto us must be amongst the clearest and most easily understood sign of them all. Not only does that show that the banks have money to lend once more but it also shows that they’re at least prepared to consider lending it too. You might think I said the same thing twice in the last sentence but I didn’t. They always did have money to lend, what they wouldn’t do was actually lend it.

Moreover, this isn’t like them lending via mortgages (which also seems to have restarted, going by the number of “sold” signs going up lately). With a mortgage they have some security (ie they can take the house off you). With a credit card, they are taking a real risk that they could lose the money so overall it’s more encouraging to see people trying to sell you credit cards than it is to see more mortgages being approved.

Now, I’ll grant you that they are probably going to offer you a lower limit than you might have expected in the past, if they offer you a card at all that is. However, that they are trying to actively sell credit cards now seems a very clear sign that an upturn is on the way.

Popularity: 1% [?]

The Egg Money card used to be one of the handiest cards that I had, despite the dopey hamster adverts.

You could use it as a savings account as it paid 4% (up until a few months ago) when you’d overpaid and indeed they encouraged you to do this. The original plan behind the card was that you’d use it essentially as a current account and therefore the credit limit was really an overdraft limit. Not only that but they paid 1% cash back on everything that you bought and even more if you bought from a small range of shops. Finally, because it was intended as a current account replacement, you could withdraw cash at no charge.

However, this year Citibank killed all that stone dead.

The 1% rebate remains, but now there’s no interest paid if you’re in credit, the limits remain pitifully small and it’s now 3% to lift cash. So it’s become an also-ran credit card. Sad to see such an innovative product killed but it’s worse that that as the security methods of Citibank are used too. Thus if you try to spend more than £200 or so in a single transaction the shop needs to call up for an authorisation number and if you use it more than twice in a single shop in a day then it’s blocked.

Unfortunately, it looks like I’m going to have to abandon this card as I had to with a previous Citibank card basically because of Tesco… today’s petrol, then the thank you card for James’ teacher, then the groceries mean it’s blocked, again.

Popularity: 1% [?]