Carrying a balance on your Bank of America credit card? You’re gonna pay for it.
In June, BofA customers with interest rates below 10% and carrying a balance will see their interest rate increase into double digits, reports LowCards.com, which covers the credit-card industry and tracks weekly card interest rates.
However, customers apparently may be able to “opt-out” of this increase if they call BofA and not use the card anymore. This is a trend that LowCards.com says it has seen at Citigroup, American Express and Chase.
“If you are an established customer, especially one with average credit, the issuers want to minimize their risk and have you pay off your balance. They are forcing the issue by increasing the interest rates,” LowCards.com writes.
CreditMattersBlog.com, which focuses on credit issues, says that this opt-out clause is a bit friendlier than other bank policies because it allows the consumer to keep their account open as long as the card isn’t used. (READ MORE HERE.)
Friendlier or not, the panel overseeing the federal banking bailout is looking into the lending practices of institutions that received the funds — after complaints about rising interest rates and fees, according to the Wall Street Journal. (READ ITS STORY HERE.)
Check out: My columns for more credit/debt strategies that could save you money!
- 6 steps to dumping toxic debt
- Ditch your bank for a credit union
- Decline my debit card, please
- 3 things you shouldn’t charge
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