Bank of America bumping rates up and/or cutting credit limit

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tarting with June account statements, any credit-card customer who carries a balance and has an interest rate below 10% will see his or her rate jump into double-digit territory. A company spokeswoman declined to provide an exact number, saying the changes would affect less than 10% of the bank's card customers in the U.S.

They are following other lenders, like Citi.

One of our BoA cards recently got dropped from 11k to 7500 credit line. We never, ever carry a balance on it (or use it for that matter!) and credit is spotless.

I would like to see everybody enter a new era of not using credit cards like a bank account buffer, with it socially acceptable to carry continual and substantial balances. Not sure that's realistic, though.

 

[blahblah99]

The problem is not in using the credit cards, its in carrying debt on the credit card.

I use credit cards all the time because it's convenient, but I also pay off all balances before it's due. Thats why I can care less about the interest rates on the cards.

 

[JSt0rm]

I think people will realize that they don't want to be carrying debt on these cards. On my main card I have a 6500 limit and 7% interest t is a boa card to so it will be interesting to see if my % goes up and my limit goes down. These banks don't have any money so they can't do the cc thing.

 

[ebaycj]

Originally posted by: blahblah99
The problem is not in using the credit cards, its in carrying debt on the credit card.

I use credit cards all the time because it's convenient, but I also pay off all balances before it's due. Thats why I can care less about the interest rates on the cards.

Personally, I find credit cards to be a pain in the ass, ESPECIALLY if you pay your balance in full every month. In that case, why not just get a Visa/MC check card and be done with it? No more CC bills to pay = less hassle.

 

[aphex]

My 6.99% BOA is jumping up to ~ 14%. I carry a small balance but will be transferring it to another card with a promotional rate.

 

[Drakkon]

Originally posted by: ebaycj

Originally posted by: blahblah99
The problem is not in using the credit cards, its in carrying debt on the credit card.

I use credit cards all the time because it's convenient, but I also pay off all balances before it's due. Thats why I can care less about the interest rates on the cards.

Personally, I find credit cards to be a pain in the ass, ESPECIALLY if you pay your balance in full every month. In that case, why not just get a Visa/MC check card and be done with it? No more CC bills to pay = less hassle.

I like my CC as I get a lot of promotional offers through Amex and BofA for using the card. Such as for Amex i get cash back and for BofA I get shopsafe numbers (so i don't have to enter my actual CC online). Compound that with the protections fo credit (not drawing immediately from my bank account so if i want to dispute something i don't have to wait for money back) and I don't see why I'd ever use my debit card.

Somehow my BOA card has remained stable - 9% APR - i don't carry a balance though and use it to pay just one $15 bill each month but have a rather high limit (over 10K - used it for major 1 time purchase only). I see why they are doing this and it probobly in the long run can be a good thing if it gets people to think more about spending less on credit. So much of what has gone down is because everything was based on credit and 'fake' money.

I wonder though why they still only offer "instant credit line increase" online and not a credit line decrease if they want to keep doing this. I've thought about decreasing my line but dont want to deal with some phone system for an hour. Seems like a line decrease is what they want people to do but they want the most control over it, where i would think if they gave people the control they could do it a lot faster and with much less complaining.

 

[fleshconsumed]

Originally posted by: ebaycj

Originally posted by: blahblah99
The problem is not in using the credit cards, its in carrying debt on the credit card.

I use credit cards all the time because it's convenient, but I also pay off all balances before it's due. Thats why I can care less about the interest rates on the cards.

Personally, I find credit cards to be a pain in the ass, ESPECIALLY if you pay your balance in full every month. In that case, why not just get a Visa/MC check card and be done with it? No more CC bills to pay = less hassle.

I prefer credit card over debit one because with credit card I don't have to worry about balance as long as I pay it off every month. With debit card the funds are drawn from checking account, so I either have to permanently keep several thousands on my checking account which I do not like, or have to anticipate purchases on my debit card and periodically refill my checking account. Either way it's a pain in the ass. Credit card is much more convenient.

 

[JohnOfSheffield]

Originally posted by: Skoorb
Link

tarting with June account statements, any credit-card customer who carries a balance and has an interest rate below 10% will see his or her rate jump into double-digit territory. A company spokeswoman declined to provide an exact number, saying the changes would affect less than 10% of the bank's card customers in the U.S.

They are following other lenders, like Citi.

One of our BoA cards recently got dropped from 11k to 7500 credit line. We never, ever carry a balance on it (or use it for that matter!) and credit is spotless.

I would like to see everybody enter a new era of not using credit cards like a bank account buffer, with it socially acceptable to carry continual and substantial balances. Not sure that's realistic, though.

Get a cheque buffer instead, use a regular charge card and if you really need it in the end of the month, there will be money in the account so fast that the interest over a year will be negligable.

I've never had a credit card in my life and i never plan to.

If you are constantly using more and more of the credit then you need to cut down on your spending, spending more than you earn will eventually ruin you.

 

[cubby1223]

Originally posted by: Skoorb
One of our BoA cards recently got dropped from 11k to 7500 credit line. We never, ever carry a balance on it (or use it for that matter!) and credit is spotless.

I would like to see everybody enter a new era of not using credit cards like a bank account buffer, with it socially acceptable to carry continual and substantial balances. Not sure that's realistic, though.

Well, even if you never carry a balance on the card, I think regulations on the bank demands they have the capital to cover your credit line. So lowering your credit line does help them out while they're being stress tested. Or I could be completely wrong

 

[JohnOfSheffield]

Originally posted by: cubby1223

Originally posted by: Skoorb
One of our BoA cards recently got dropped from 11k to 7500 credit line. We never, ever carry a balance on it (or use it for that matter!) and credit is spotless.

I would like to see everybody enter a new era of not using credit cards like a bank account buffer, with it socially acceptable to carry continual and substantial balances. Not sure that's realistic, though.

Well, even if you never carry a balance on the card, I think regulations on the bank demands they have the capital to cover your credit line. So lowering your credit line does help them out while they're being stress tested. Or I could be completely wrong

Yup, that is how i understand it too. Just get rid of the credit card and get yourself an account with a cheque credit, use your charge card and if you are always over the line, you know you're doing something wrong.

If you need to, get a bank loan to pay it off, the rate is WAY lower.

Credit cards is an invention of financial institutions and take a look at how clever they are.

 

[palehorse]

My credit limit on my BoA platinum card is $24,000, I carry no balance, yet I just received a letter stating that my rates are jumping to more than 15%... go figure.

With no balance, however, I couldn't care less... so fuck 'em.

The world could do without those who are irresponsible and carry massive balances on CCs... so fuck them too.

 

[misle]

Originally posted by: aphex
My 6.99% BOA is jumping up to ~ 14%. I carry a small balance but will be transferring it to another card with a promotional rate.

Yup, my 5.9 just jumped to 11.65%. I had a small balance on it that I cannot pay off right now, so I transferred it to a new Discover card - 12 months 0% on balance transfers.

 

[JohnOfSheffield]

Originally posted by: palehorse
My credit limit on my BoA platinum card is $24,000, I carry no balance, yet I just received a letter stating that my rates are jumping to more than 15%... go figure.

With no balance, however, I couldn't care less... so fuck 'em.

The world could do without those who are irresponsible and carry massive balances on CCs... so fuck them too.

True, all of it.

I have a cheque credit for £100k, never used but it's sitting at below 10% efficiant rate so i could buy a house on the spot if i find one, of course i would transfer that to a bank loan asap and get 3-4% efficant rate for a short term loan.

15% is what i paid on a car loan in the early 90's, (and that was on a bank loan) i won't be making that mistake again.

 

[Balt]

Originally posted by: ebaycj

Originally posted by: blahblah99
The problem is not in using the credit cards, its in carrying debt on the credit card.

I use credit cards all the time because it's convenient, but I also pay off all balances before it's due. Thats why I can care less about the interest rates on the cards.

Personally, I find credit cards to be a pain in the ass, ESPECIALLY if you pay your balance in full every month. In that case, why not just get a Visa/MC check card and be done with it? No more CC bills to pay = less hassle.

I'm still a bit paranoid about linking anything other than my checkbook to my checking account, to be honest. I mostly use my CC for grocery trips and such.

 

[StageLeft]

Originally posted by: ebaycj

Originally posted by: blahblah99
The problem is not in using the credit cards, its in carrying debt on the credit card.

I use credit cards all the time because it's convenient, but I also pay off all balances before it's due. Thats why I can care less about the interest rates on the cards.

Personally, I find credit cards to be a pain in the ass, ESPECIALLY if you pay your balance in full every month. In that case, why not just get a Visa/MC check card and be done with it? No more CC bills to pay = less hassle.

They also in most cases increase one's spending beyond the trivial benefit offered by silly rewards and things. I've recently moved back to 100% cash (actually debit) except for online purchases. I literally feel awash with money since doing it; it's amazing how much better my finances seem to have become since I stopped playing monthly catch up where I'd pay that credit card bill off. It's retarded to use debt to paying for general expenses, I think.

Granted, there is some risk with these cards that can double as credit cards. I really wish in fact that mine didn't and was only debit, but if I cared enough I'd have another checking account just for basic purchases, or use cash (But I don't want a few hundred on me). I still don't keep much in my account because as money comes in it digitally goes toward bills or into savings.

 

[JohnOfSheffield]

Originally posted by: Balt

Originally posted by: ebaycj

Originally posted by: blahblah99
The problem is not in using the credit cards, its in carrying debt on the credit card.

I use credit cards all the time because it's convenient, but I also pay off all balances before it's due. Thats why I can care less about the interest rates on the cards.

Personally, I find credit cards to be a pain in the ass, ESPECIALLY if you pay your balance in full every month. In that case, why not just get a Visa/MC check card and be done with it? No more CC bills to pay = less hassle.

I'm still a bit paranoid about linking anything other than my checkbook to my checking account, to be honest. I mostly use my CC for grocery trips and such.

You do realise that the card readers that read your charge card can also read your credit card and empty it? Say you have £20k as a limit, you would have a harder time dealing with a CC company than your local bank if someone emptied it out besides you.

Besides, you could always make sure at the atm before inserting your card and use cash, either way is better for your economy in the long run.

 

[Thump553]

Skoorb:

For the credit card you never use, I would start using it once or twice a month. Otherwise the bank will close it (happened to me recently). According to the talking heads on TV it negatively affects your credit rating if a card is closed by the bank for any reason, including nonuse.

You are smart switching to cash the way you have, but I'm disciplined enough to stick to using credit cards and paying the balance off in full each month. My reasons: (1) security of the credit card company standing behind me (esp. important on internet sales, (2) I get roughly $300-500 in actual cash per year in rewards for a card that cost me nothing and (3) perhaps most importantly, credit card usage provides a very easy trail for proof of payment, receipts, etc.

Its important to have at least one secondary card with a decent credit limit on it that you don't use (except to keep it active) as protection for those emergency unexpected bills, like dropping a transmission on vacation, etc.

Only fools and desperate people run a balance on their credit cards, however.

 

[kage69]

I have 2 BOA credit accounts, and both APRs have just been recently hiked while the limits were left alone. They've always been good to me, although I've been a pretty low maintenance customer too. Regardless, we're going to have a little talk where I'll be allowing them to adjust things in order to keep my business - and that includes my Merrill Lynch account. Bailout recipients trying to gouge me for more than they already get, gtfu outta here. :|

 

[miketheidiot]

bank of america made alot of money for me yesterday

 

[frostedflakes]

So I guess Visa is doing alright in the economic downturn? They haven't screwed with my credit limit or APR yet, but I have a low limit (only $1k), so I'm probably not a big liability to them. And I couldn't care less about the APR, as I never carry a balance.

 

[gingermeggs]

All the bail outs in the world can't save this company- if you switch to a fair bank.
Vote with your dollar in a shamocracy!

 

[Dulanic]

Originally posted by: frostedflakes
So I guess Visa is doing alright in the economic downturn? They haven't screwed with my credit limit or APR yet, but I have a low limit (only $1k), so I'm probably not a big liability to them. And I couldn't care less about the APR, as I never carry a balance.

Visa doesn't issue credit, their just the processor. Your card is through some bank. Visa has no risk so they dont get hurt with the downturn very much besides lower spending. But with debit cards and credit card their good.

 

[Compton]

I just received a letter from BoA. The bastards cut my credit limit from 23k to 11k. My APR hasn't changed (yet), but I never carry a balance anyway.

 

[glenn1]

Originally posted by: Compton
I just received a letter from BoA. The bastards cut my credit limit from 23k to 11k. My APR hasn't changed (yet), but I never carry a balance anyway.

Honestly, if you use evil fvcktards like BAC for your banking needs, then you shouldn't be suprised when they do this sort of thing. There's a ton of good places out there you could use instead (like almost any credit union).

 

[Compton]

Originally posted by: glenn1
Honestly, if you use evil fvcktards like BAC for your banking needs, then you shouldn't be suprised when they do this sort of thing. There's a ton of good places out there you could use instead (like almost any credit union).

I was a happy MBNA customer until Bank of America bought them out. I have accounts with other banks, so I might go ahead and close this one.