So Bank of america is raising my APR.

[manlymatt83]

from 8.99% to 25%! For no reason whatsoever.

I have a small balance on the card that I should be able to pay off within a few months. They say I can either close the account now, or just opt-out and keep the account open but not use it. I'm almost afraid though that if I keep the account open, an auto-charge might hit and I might get screwed....

So here's the two options I forsee:

- Close the account so I can keep the old rate.
- Keep the account open, but mark the card as "lost" so they send me a new card with a new number, and immediately sock draw that card so it isn't accidentally used.

Thoughts?

 

[Kyle]

Have any other cc's? What I did was transfer my balance to a fixed promtional rate on a different card.

 

[Hacp]

Did you recently purchase from Wal-Mart?

 

[masteryoda34]

Your welcome. As an American citizen I have a significant ownership stake in BoA through the government.

 

[Hacp]

Originally posted by: masteryoda34
Your welcome. As an American citizen I have a significant ownership stake in BoA through the government.

Actually, you don't have any stake at all. You are, however, a creditor to BoFA.

 

[masteryoda34]

Originally posted by: Hacp

Originally posted by: masteryoda34
Your welcome. As an American citizen I have a significant ownership stake in BoA through the government.

Actually, you don't have any stake at all. You are, however, a creditor to BoFA.

Yes I do.

The largest of the banks is Bank of America (B of A) - now partly owned by the United States of America.

http://www.cbsnews.com/stories...utes/main4531244.shtml

Google, it does wonders.

 

[Hacp]

Originally posted by: masteryoda34

Originally posted by: Hacp

Originally posted by: masteryoda34
Your welcome. As an American citizen I have a significant ownership stake in BoA through the government.

Actually, you don't have any stake at all. You are, however, a creditor to BoFA.

Yes I do.

The largest of the banks is Bank of America (B of A) - now partly owned by the United States of America.

http://www.cbsnews.com/stories...utes/main4531244.shtml

Google, it does wonders.

I'm pretty sure Tarp money was a loan, not a giveaway. No stock was exchanged.

 

[jpeyton]

You can dispute any rise in your interest rate in writing. Do it soon, they only give people a 2-3 week window to decline a change in interest rates.

You still get to keep your card, keep your current APR, etc.

 

[Hacp]

Originally posted by: Hacp

Originally posted by: masteryoda34

Originally posted by: Hacp

Originally posted by: masteryoda34
Your welcome. As an American citizen I have a significant ownership stake in BoA through the government.

Actually, you don't have any stake at all. You are, however, a creditor to BoFA.

Yes I do.

The largest of the banks is Bank of America (B of A) - now partly owned by the United States of America.

http://www.cbsnews.com/stories...utes/main4531244.shtml

Google, it does wonders.

I'm pretty sure Tarp money was a loan, not a giveaway. No stock was exchanged.

Nvm, the Janurary 16th rescue was a stock exchange.

 

[JMapleton]

Time for a balance transfer homie or pay it off.

 

[0roo0roo]

no more usery laws...we is pwned.

"For hundreds of years, societies all over the world have protected borrowers by limiting interest rates charged by lenders.

But in today's credit card market, American borrowers are on their own.
- advertisement -

Less than half of all U.S. states bother to cap credit card interest rates, and few credit card issuers are based in these states anyway.

Most major credit card issuers are based in states without usury laws and without interest rate caps on credit cards. Banks and credit card issuers based in these states can charge any interest rate they wish -- as long as the rate is listed in the cardholder agreement and the borrower agrees.

And thanks to a 1978 U.S. Supreme Court decision, these the-sky's-the-limit rate policies dominate the credit card business."
http://www.bankrate.com/brm/news/cc/20020320a.asp

http://www.pbs.org/wgbh/pages/.../credit/more/rise.html
http://www.pbs.org/wgbh/pages/frontline/shows/credit/

 

[Parasitic]

Time to switch to another card and transfer the balance over?

 

[kranky]

Originally posted by: manlymatt83
from 8.99% to 25%! For no reason whatsoever.

I have a small balance on the card that I should be able to pay off within a few months. They say I can either close the account now, or just opt-out and keep the account open but not use it. I'm almost afraid though that if I keep the account open, an auto-charge might hit and I might get screwed....

So here's the two options I forsee:

- Close the account so I can keep the old rate.
- Keep the account open, but mark the card as "lost" so they send me a new card with a new number, and immediately sock draw that card so it isn't accidentally used.

Thoughts?

The bolded tactic won't work. If you have automatic charges, they will simply go on the new card. A replacement card is not the same as a completely separate account, even if the number changes.

 

[aphex]

The wife and I just got the same letter, ours is doubling from a low rate, but it still sucks.

 

[Bateluer]

I'd close the account and pay off the card. When Chase spiked my card with them to 24%, I cut the card up, transferred its balance to a lower card, and paid it off. That account has been sitting open with an empty balance for the last two years.

 

[imported_Lothar]

Why would anyone care about what the interest rate on a credit card is? 😕
My credit card companies can increase my APR to 1000+% for all I care. I still wouldn't care and would continue using my cards as usual.

The uproar on interest rates is ridiculous.
It's pretty simple...Don't spend money you don't have.

 

[IceBergSLiM]

stop supporting BoA and the other corrupt banks.

 

[SunnyD]

Originally posted by: Lothar
Why would anyone care about what the interest rate on a credit card is? 😕
My credit card companies can increase my APR to 1000+% for all I care. I still wouldn't care and would continue using my cards as usual.

The uproar on interest rates is ridiculous.
It's pretty simple...Don't spend money you don't have.

This.

 

[amdhunter]

Originally posted by: Lothar
Why would anyone care about what the interest rate on a credit card is? 😕
My credit card companies can increase my APR to 1000+% for all I care. I still wouldn't care and would continue using my cards as usual.

The uproar on interest rates is ridiculous.
It's pretty simple...Don't spend money you don't have.

Damn. Never thought about it like that.

 

[dullard]

Originally posted by: Lothar
Why would anyone care about what the interest rate on a credit card is? 😕
My credit card companies can increase my APR to 1000+% for all I care. I still wouldn't care and would continue using my cards as usual.

The uproar on interest rates is ridiculous.
It's pretty simple...Don't spend money you don't have.

Bingo. I wouldn't care at all if my CC went into millions of percentages since I have never and will never pay a penny in interest.

Use credit cards for what they are: convenient, safe, and federally protected means to make a purchase. As a plus, you can get rewards or a short term interest free loan (until the bill comes). But don't abuse that last part. Don't use a CC as a loan. Get a loan if you need money. You are right, it is pretty simple. But so few people understand that you get a loan if you need a loan. Instead, they whip out a card and ignore the consequences.

 

[Saga]

Horror stories like this are what makes me glad my state imposes a cap on interest rates.

 

[IceBergSLiM]

Originally posted by: dullard

Originally posted by: Lothar
Why would anyone care about what the interest rate on a credit card is? 😕
My credit card companies can increase my APR to 1000+% for all I care. I still wouldn't care and would continue using my cards as usual.

The uproar on interest rates is ridiculous.
It's pretty simple...Don't spend money you don't have.

Bingo. I wouldn't care at all if my CC went into millions of percentages since I have never and will never pay a penny in interest.

Use credit cards for what they are: convenient, safe, and federally protected means to make a purchase. As a plus, you can get rewards or a short term interest free loan (until the bill comes). But don't abuse that last part. Don't use a CC as a loan. Get a loan if you need money. You are right, it is pretty simple. But so few people understand that you get a loan if you need a loan. Instead, they whip out a card and ignore the consequences.

God you guys are so fucking awesome.

 

[Exterous]

Same here, but with Citi Visa. My rate more than doubled to 24%. Wierd thing was I got an offer from Citi for a mastercard with 0% interest for 1 year. I called but they were unwilling to match that offer for my Visa - so I had to apply for the Mastercard and then do a balance transfer as there was also 0% interest for a year on those :roll:

 

[alkemyst]

They are coming under flak slowly, these same lenders being coaxed to free up credit through stimulus and bailout are instead tightening their fist and using the funds to buy up competition.

In the end I think we are fucked. I have a huge credit debt from college mainly, pay more than 3x my minimums if I don't pay more each month. No lates, etc and they still have raised a few of my rates two fold or more. I was hit with a 8.xx to close to 20% increase a couple months ago and another a few before that on two cards.

 

[SagaLore]

Originally posted by: manlymatt83
from 8.99% to 25%! For no reason whatsoever.

Actually they do have a reason. You're just unaware of it.

My BOA card dropped from 28% to 13%, woohoo! 🙂