Credit cards are to be withdrawn from 161,000 Egg customers who it believes pose an unacceptably "high risk".
I've got a Capital One Classic Card @ 39.9% APR I know it's high, but it was the only card I can get hold off.
Just heard on BBC Radio 4 of two customers having their Egg card withdrawn who have perfect payment records, never over their limit and who pay off their balance in full every month.
I think the only unacceptably "high risk" for Egg is the high risk that they won't make any money from these customers.
That's the same for every financial institution, which is why the whole business of so-called credit rating is a nonsense in practice.
They make a small percentage of every transaction, don't they?
I assume Egg are going after those cc holders who pay their balance off in full every month AND do not spend regularly on the card.
In message , Sam Nelson wrote
They only make a profit from that small percentage if the customer spends enough to cover the admin costs first.
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