... The first Internet product to which I subscribed was a Cahoot credit card, several years ago. This is a summary of my thoughts and experiences over that time.
WHY CAHOOT?
I was attracted to Cahoot because the company was set up as an affiliate of the Abbey National group. Whilst the ... Read review
Advantages: Competitive APR, logical web layout Disadvantages: Procedural problems, slow response to emails
...which I subscribed was a Cahoot credit card, several years ago. This is a summary of my thoughts and experiences over that time.
WHY CAHOOT?
I was attracted to Cahoot because the company was set up as an affiliate of the Abbey National group. Whilst the Abbey National is not necessarily the most competitive bank on the high street, I have always received good service from them and as a first stab at Internet banking, ... ...CONDITIONS
The Cahoot credit card is different from other card service providers, in that you are offered three different account options.
Option 1 – Interest Only
This option is targeted at users who seldom carry a balance because there is no monthly fee, and if you do carry a balance, then you will be charged a lower APR (currently from 7.0%).
What attracts me most to Internet finance products is the convenience and flexibility. I want to be able to administer changes to my account and complete transactions quickly, conveniently and wherever possible, without having to contact the bank concerned. The other key attraction should be that there is an opportunity to save money – it’s cheaper for the bank, so it should be cheaper for me. The first Internet product to which I subscribed was a Cahoot credit card, several years ago. This is a summary of my thoughts and experiences over that time.
WHY CAHOOT?
I was attracted to Cahoot because the company was set up as an affiliate of the Abbey National group. Whilst the Abbey National is not necessarily the most competitive bank on the high street, I have always received good service from them and as a first stab at Internet banking, I was inclined to go with a name that was familiar to me. When the card was originally conceived, there were also a number of different interest and fee options, according to how you wanted to manage your account. I was within the first 20,000 applicants and as such received the card with 0% APR and no fees for 9 months. These options still exist for cardholders today.
BASIC TERMS AND CONDITIONS
The Cahoot credit card is different from other card service providers, in that you are offered three different account options.
Option 1 – Interest Only
This option is targeted at users who seldom carry a balance because there is no monthly fee, and if you do carry a balance, then you will be charged a lower APR (currently from 7.0%).
Option 2 – Interest and Fee
This option is targeted at users who frequently carry a balance on their card. There is a small monthly fee (from £6.83 per month) and a discounted APR that starts from 6.3%.
Option 3 – Fee Only
This option is targeted at users who always carry a high balance on their card. There is only a monthly fee to pay – no interest. The fee is based on your credit limit and represents an APR from as low as 5.6%.
In reality, these options are not as exciting as they first appear, because the fees charged are really a different way of showing your interest. Even in option 3, where you pay no interest at all, the fee charged monthly goes up and down in line with the balance you carry – so it is an interest payment by another name.
In terms of value for money, however, all these options are very competitive and easily match the standard APR offered by the nearest equivalent – Egg – which currently stands at 12.9%.
In order to reduce costs, and to therefore protect customer savings, the account management process is therefore facilitated exclusively online. The application process takes place online – relatively straight forward and timely – but the credit agreement must still be sent and returned by conventional mail, so the time taken to receive your new card(s) can still be quite lengthy. One of the problems that Cahoot has always suffered from is an inability offer a truly dedicated online service – but I’ll talk more about this later.
One important fact to note – Cahoot products are only offered to those people who are 21 or over – the normal age restriction on a credit card application is 18 years.
ACCESSING YOUR ACCOUNT DETAILS
The Cahoot web site is not the most logically arranged web site. When viewed in Internet Explorer, the screen display is adjusted slightly to the left, with a large blank strip running down the right-hand side. There is a scroll bar on the right, but I can’t help thinking that the page looks clumsy. The page then links to each of the main products offered, with a large picture of the advertised 8% typical APR. There are various account management options in a menu bar at the top, although, rather confusingly, there is also a scroll down menu, which offers nearly the same options all over again.
Logging into the site, in order to manage your account is refreshingly simple, whilst still being secure. You are prompted for a user name (selected on application) as well as a password, and then a number of memorable options (place, year, maiden name), one of which is presented at random during each login. I find the Cahoot site much easier and faster to log into, compared to Egg, for which a lot more information is prompted. Once you are logged in, you are presented with a personal homepage, which displays any of the Cahoot products that you may have taken up.
MANAGING YOUR CREDIT CARD ACCOUNT ONLINE
In general, I think that the Egg web site enables far easier management of your credit card account online, but the Cahoot site is more sophisticated. A useful feature is the Cahoot Messenger service. This shows messages received from Cahoot, an alert for which you can opt to receive via SMS and/or email. The messages received vary and include essential account information as well as advertisements – but at least they prevent junk mail at home. From your personal home page, you can select your credit card account from one of two menus, and then you will be presented with detailed account information.
From the Account Status page, you can view all the sorts of detail that would appear on the front page of a printed statement. The problem is that the page is not formatted in a particularly logical way, and unlike a paper statement, things like your minimum payment and payment due date are not instantly obvious. A useful function is a pre-formatted printable account summary – although only the traditionalists would really want to keep a printed copy.
A detailed Statement is, of course available, showing all your payments and transactions. I was surprised to find that Cahoot stores two years’ worth of statements are available online – this is considerably more than Barclaycard. To be fair, the statement does present the information in a more logical format than the Account Status – but everything is still adjusted to the left of the screen.
From the Account Manager, you can carry out a number of functions. This is easily the most important part of the online process, because you need to access this section in order to:
Activate your card or order a replacement Change you card PIN Make payments and adjust your direct debit payments Change your credit limit Close your account
Each of the available functions is listed, with a hyperlink to another screen that will facilitate your request. It’s worth noting that transactions can take some time to process, according to what they are. A change to your direct debit payment, for instance, must be made a certain amount of time before the payment is due to be taken.
CONTACTING CAHOOT
The site offers a large number of frequently answered questions, but if you still need help, then Cahoot prefer that you send your query via email. Sadly, the email route is not an option that I am particularly in favour of, purely because you don’t receive an acknowledgement and I have waited for several days for a response, before now. My preferred method of account is still via the telephone and fortunately a help line is advertised, albeit with a national rate number.
Emails sent from Cahoot generally confuse me – they will tell me that a statement is ready and then I will visit the site and it won’t be. I’ve queried this a number of times, and to date, have never received a response.
WHY CAHOOT GETS IT WRONG
The primary reason that the Cahoot credit card account falls down is that the online management process simply isn’t complete. For example, you can change the amount of your direct debit payment, but you can’t change your bank account details or the date of your payment. To do this, you must request a paper direct debit mandate, which then needs to be completed and mailed back to the company.
Another major problem for me is the way in which payments and interest are charged. I don’t normally carry a balance, but for a couple of months last year I became very confused by the payment calculations.
My statement is generated on the 15th of each month. My payment is debited from my bank account on the 30th of the month. If I want to change the payment due on the 30th of a month, I must request the change 3 working days before the 15th, when the statement is calculated. This means that I must choose my payment amount BEFORE I know how much interest has been charged.
Confused? I was – and quickly cleared the balance to avoid any further confusion.
It’s also worth noting that once you have selected one of the three account management types, if you subsequently change your mind, you can’t change over. So, if you have the interest only option, you can’t switch to the fee only option and so on. I just don’t find the Cahoot system flexible enough.
OVERALL VERDICT
I have no complaints with the value for money here – Cahoot is definitely one of the more competitive providers out there. The account management process leaves a lot to be desired though – and the whole system is very staid. There are no special offers, loyalty schemes or affiliates to keep you interested. My Barclaycard account offers me a lot more flexibility – which is why my Cahoot account remains unused.
Advantages: Secure purchasing on the Web Disadvantages: Such a hassle trying to apply for it
...On the face of it Cahoot had nothing to interest me.
Until, that is, I read a small article on the Web. It was one of those regular articles that bemoan the insecurity of doing any sort of financial transaction online. Now, I don't know if you are like me but I must admit that buying things on the Web does fill me with a certain nervousness. Revealing details of bank accounts and credit cards, as you have to, is not something that I do without considerable ... ...The way that the Cahoot Webcard works is that it is a "virtual" debit card. It does not exist in a physical form, only as software. What makes it secure is that you can only use it once. So, what use is that if you have to apply for a new debit card each time you use it? Well, actually, that's not how it works. What can only be used once is the debit card information; the debit card number, the expiry date and the security number. After that is used ...
grahamft 02.08.2008
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Ciao members have rated this review on average: very helpful Review of Cahoot Card
Advantages: good rate, convenient to use Disadvantages: I have to start paying interest soon
...Why not keep them together? cahoot was making an offer too good to ignore.
For a full year from opening my account in June last year I pay absolutely no interest on my credit card, and no charges for maintainance. While balance transfer was not available I simply used the card for all spending for a couple of months and used the money I saved to clear my old credit card. Dead easy!
Of course it won't stay free, but in June I will have an annual ... ...Not bad for a credit card. Other options include a fee free card with a higher apr, designed for people who usually clear their balance monthly. If I could clear mine monthly I woudn't need it in the first place!
Apart from the great rate there are other benefits. I can make transactions online, checking for debits and credits and authorising payments. It is also ideal for web shopping as they give a gaurantee if goods are not delivered/faulty and ...
colinlivingstone 07.03.2001
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Ciao members have rated this review on average: very helpful Review of Cahoot Card
Advantages: See review Disadvantages: You still have to pay the bill eventually
...am currently using is the Cahoot Visa card, which is the Internet card supplied by Abbey National.
What attracted me most was the fact that this card has the lowest interest rate available in today’s competitive market, with its current APR rate running at only 8 per cent.
You can apply online by going to their website at www.cahoot.com, and you’ll get a provisional clearance back within minutes in most cases.
You manage your account ... ...your old credit card, then Cahoot also offer a very good rate for anybody wanting to transfer their balance, that varies from between 7% to 11% depending on your individual credit limit.
They also have deals running with a few online companies, one of who are the large computer manufacturers Dell, and you can also get yourself a free Wap phone if you sign up with BT Cellnet via Cahoot. This is currently a Siemens C35i, complete with a home and in-car ...
flooda 26.04.2001
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Ciao members have rated this review on average: very helpful Review of Cahoot Card
...just this. Now Cahoot was special, and remains so, it was not only Low Rate, it was No Rate, so I took the card, drew the money from the cash machine and put it straight in the bank, setting up a direct debit to make the minimum payment each month. I also took advantage of my remaining credit (you can't withdraw all your credit as a cash advance) by using it for my spending and instead of paying off my bill in full making the payment into my savings ... ...cold to start with, but Cahoot has changed all that. I have been so impressed with their handling of the credit card offer that last week I took the plunge and started to transfer my current account to them. I'm convinced that if the internet is the future, then banks of the future need to look to emulate the performance, offers and rates of banks such as Cahoot if they want to retain customers and capture the next generation of customers. It doesn't ...
IainCMartin 05.08.2001
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Ciao members have rated this review on average: very helpful Review of Cahoot Card
Advantages: good APR Disadvantages: no online balance transfer facility
After initially signing up to Cahoot for an interest only credit card account due to the initial offer of 5% cash back on balance transfers. For me this was a diamond offer I could not refuse, unfortunately they have not carried on with this offer so other Credit cards initial offers seem very attractive for a short-term debt transfer repayment. SO HOW MUCH ARE THEY RIPPING ME OFF FOR:
The interest rate is very low compared to other online credit ... ...credit card that frequently using Cahoot makes sense with its low cost of ownership. For medium-term borrowings you can pay a monthly fee to Cahoot to use the lower interest rate band for use with larger credit amounts.
WATCH OUT YOUR IN THE SECRET SERVICE:
Login into your Cahoot account is a lot simpler than Egg as you have to just enter your username, password and a choice between memorable year, place, and mothers’ maiden name. Why other ...
Deviant 16.05.2001
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Ciao members have rated this review on average: very helpful Review of Cahoot Card
Competitiveness of APR
Product package
Quality of Customer Ser...
Reward Scheme
Additional Charges
Security and Privacy
Ease of Application
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Advantages: attractive interest rate Disadvantages: poor customer service
In December I set up a Cahoot current account , as the interest rate is attractive.However it took a month to set up the the account and when I tried to use my cash card to access my wages , the card did not work. After sending an email to report the fault it took 3 days for a responce and that only adviced me to call the call centre.I did this after waiting for 15 minutes for someone to speak to me they sent another card to me. However my new cashcard did not work either.So I called cahoot again and another was sent to me. happily the 3rd card does work. So after 6 weeks i was able to access my wages. I have since written a complaint to then but after 2 weeks i have still have no reply. ...
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This is essentially a cross between a consumer and a financial website.It backs up the content broadcast on the Simply Money television channel on Sky Digital.
The site is split into several categories including motoring, borrowing, saving, mortgages and insurance. The two that I find most useful are the 'Simply news' and 'Simply deals' section, both of which have actually saved me money over the last couple of months.
The two deals that caught my eye were the Cahoot credit card 5% cashback on balance transfers, and the summary of how to save by transferring gas and electric to another supplier.
The site is impartial, easy to navigate, and not as cluttered or complicated as other financial sites I've tried.
To access some of the content, you need to register with them - a process that is quick, and free.
www.simplymoney.net ...
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Advantages: Interest on current accounts Disadvantages: Poor card replacement security
My wife and I have a joint current account at Cahoot. Earlier this year my debit card expired and I was advised by the bank that a replacement was on its way. Sure enough it turned up about a week later but to my horror it arrived via normal letter post with the new card affixed to a sheet proclaiming that it was ready for immediate use and required no validation whatsoever. It is a statement of the blindingly obvious to say that things can and do go astray in the post and I immediately contacted the bank to complain at this blatant lack of security. It got me nowhere. After a great deal of correspondence they confirm that this is their way of despatching replacement cards and they have no intention of changing it. Perversely, their parent company, Abbey, has a system whereby customers have the choice of having them sent to ...
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