bank of america raised my interest to 32% what can I do?

Question

options when a credit card company raises rate that is very high

Answer 1

WOW! You know, I thought I had an awesome APR at 10% when I was getting unsolicited offers for 18%, but 32% is just plain userous! Odds are that you've missed at least one payment. You should learn to live within your means and perhaps ease off of the credit. If you pay off in-full and on time, you won't have to deal with the penalty. You can try to call BofA and try this...

(1) Gather all the preapproed offers you've received in the mail. (When you call your companies to ask for a break, you need to be able to tell them who's offering you a better deal and how much better it is.)

(2) Have a rough idea of how valuable a customer you've been: how long you have had the card, how much you charge a month or year, how much interest they're earning each year on your business, and whether you pay on time. When you've got it together, you can proceed.

Call the toll-free customer service number and ask or a lower rate... calling and asking for a lower rate results in a reduction 56% of the time -- and a substantial reduction (1/3 of their current rate) at that. Here's a script to follow when you call. Begin with:

"I have [name of card] with you and my interest rate is [X] percent. I received another offer in the mail from [other bank's name] for [X] percent, but before I take it, I want to see if you can lower my interest rate instead."

If the representative says they're not authorized to do that, you say:

"Look, you and I both know that if I transfer my balance today, next week your bank is going to send me an offer to come back at an even lower rate. Why don't you just save the bank the cost of that effort by giving me several points today?"

If the rep says it's not possible because your credit card is at a fixed interest rate, you say:

"Actually, that doesn't have anything to do with whether or not you have the ability to lower my interst rate. A fixed interest rate only means that my rate doesn't very with fluctuations in the prime rate. In fact, the bank can raise it on my account at any time by just giving me 15 ays' written notice. And the bank can -- if it chooses -- lower the rate today."

If the rep still says they're not authorized to do that, you say:

"I'd like to speak to your supervisor."

Speak to a supervisor and ask again. Even if you get a substantial cut in the interest rate from the first person, it's worth speaking to a superisor to see if you can do any better. The person on the front line of customer service will be authorized only to cut your rate by a preset amount (if at all). The customer service representative may also insist that the supervisor doesn't have the power to cut your rate either, or -- if you've already gotten a break -- to cut it further. That may not be true, so insist on speaking to the supervisor anyway.

Threaten to close your account. Let me be clear here: You don't WANT to close your account. It won't do good things to your credit score. However, if the bank believes that you're willing to close your account -- and you've been a profitable customer -- then you stand a better chance of getting what you want.
Keep a record of whom you spoke to and what was said. If your promised rate cut -- or fee waiver -- doesn't materialize, then you're going to need a paper trail to back up your story. Knowing to whom you spoke, when the call was placed and what was promised is key.

Transfer your balance. If you're not successful in reducing your interest rate over the phone, it's time to transfer your balance. There are two places to find good balance transfer offers: your mailbox (the average person gets five credit card solicitations a month) and at websites, including bankrate.com and cardweb.com.

Answer 2

Shop for a new card that will allow you to transfer your balance. It's a competive industry and you can probably do better.

You must have some idea why they raised the rate - missed payments, late payments, etc. If you don't know why, contact them and ask. If something doesn't sound right, check your credit report and find out if someone has stolen your identity and opening accounts and charging without your knowledge. It's a possibility.

Answer 3

this rate MAY be usurious, and perhaps illegal. This could be a default rate for missing payments or being late several times. Call the bank and ask why the rate was raised so high, and request consideration of a lower rate to what you were paying before. If that is not possible, try to obtain credit at another bank for lower rate and pay this loan off as soon as possible. Hope that helps.

Answer 4

Well, you could answer the next mail offering of a credit card with all sorts of advantages (usually temporary) and pay off the BA card with that. No need to be polite,here. And you got the high interest by tripping over some small print that says they can do that to you if you miss a payment or forgot to shave today or something like that. I would play one credit card against another. No Mr. Nice Guy here.

Answer 5

There has to be a reason its that high. Even Bank of American immigrants would not raise your rates that high unless you were a major credit risk. If you can not think of any reason why it should be that high, open a new card with a lower rate and do a balance transer to that card.

Answer 6

MBNA is part of bank of america... they just bought them out by the way. And they probably raised your rate because you've probably racked up your credit card, maybe you're even over your limit (or you were at one time). Also late payments on a regular basis or cash advances can raise it.... they have the right to raise it.... when you got the credit card, they also inserted the print out of all the rates and what they are allowed and will do when you're late or over your limit... my advice to you is to learn how to read fine print... and if you're going to another bank... DONT go to capital one... capital one starts out at 20% and only goes up from there...

Answer 7

First of all, 32% is not outrageous if you pay late or go over your credit limit. Bank of America states strongly in the terms and conditions that if you pay late or go over your credit limit TWICE IN ANY ROLLING 12 BILLING CYCLES, we may increase your APR to a variable DEFAULT RATE of 32.24%. You paid late. All of you who think this is wrong should learn how to read and not be so credit-stupid.

Answer 8

well, have you ever heard of "arbitration", just like they have the
right to race your rates, you have the right to arbitration,
what it is, is program in which a company with experience and
legal backing(the legal backing is important) negotiates, or
arbitrates with your credit company to collecting an over all
lower amount than the one you owe, usually 40%, yes 40%.
they will also lower your monthly payments, of course, the
credit card becomes useless, and your credit takes a hit,
but it sure lifts the weight off your shoulders. I used to work for
an arbitration company, and they could work wonders for
the average American in serious debt. check out this sight
www.adatoday.com its just an example, but try talking to
them, and they'll explain how it all works, and how they can
help. Oh yea, there are no strings attached till you
for sure, 100% agree to their help.

Answer 9

Are you aware that Bank of America is going to issue free-of-charge credit cards to those people who are in the United States illegally? Go to another bank.

Answer 10

1. pay off the balance
2. transfer the balance somewhere else, like to a different credit card company with lower rate. definitely save you money ie. capitalone, hsbc, chase, citibank, credit unions, discovercard, AMEX, MBNA, Wachovia, Wells Fargo,
3. pay, monitor, view your bills online and on time, also theres autopay, automated system, advisor,
4. credit counseling

when a bank raises an APR to 32% that's the highest that any cc company is allow to charge you.
they make that decision to make you pay it faster, and for them to make more money. it usually happens on accounts with a high balance. good luck