By Reno Charlton
News Editor
Banking giant Egg announced earlier in the week that many of its customers would be affected by its decision to cancel some of its credit card accounts, stating that the decision was based on the deterioration of some of its credit card customers' credit ratings.
However, you may find that, like many other of the banking giant's customers, you have been affected by this decision even though your credit may seem like it is perfectly fine.
Egg has decided that there are certain customers that it no longer wants to lend to, and it has contradicted itself in terms of the reasons why it has decided not to offer credit to those placed on its 'hit list'.
On one hand, Egg officials have stated that the reason is that it no longer wants to extend credit to customers that have suffered problems with their credit rating since they opened their Egg credit card accounts.
However, on the other hand the lender has stated that it deems the customers no longer suitable to lend to, regardless of their credit rating.
It is thought that around 160,000 accounts holders with Egg have been affected by the decision, but many of those that have had their credit card accounts cancelled state that their credit rating has not only not deteriorated since they opened their Egg accounts, but that they actually have excellent credit ratings, and so cannot understand why the lender has decided to cancel their credit cards.
Egg has informed the customers that have been affected that their credit cards will become ineffective within a period of just over a month, which means that by early March around 160,000 will find that their Egg credit cards no longer work. This has come as a real blow for many; particularly those that have strived to ensure that they maintain good credit.
Egg has granted affected customers time to repay the balance on the cards, stating that whilst the cards will become ineffective for spending cardholders can still make minimum repayments or pay larger monthly amounts in order to repay the balance.
In the meantime, customers that will be looking for alternative cards either to transfer their Egg balances or to keep for spending in the future are urged to shop around to look for a suitable and competitive deal.
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