Stupid VISA and Bank America?

Question

Why am I angry; I have had my VISA for many years and now, since Bank America changed and bought MBA/ Now they want to change my Interest from 17.95% which was always terrible, to changed it to24.95% when I never had any problems to pay my bills.

What is going on and what can I do?

Answer 1

If you have never had any problem with them, then there shouldn't be any trouble qualifying for a card with somebody else. Free advice: don't close the BofA account. Having an account with a long history will help your credit score, even if you're not using it activly. (or, better yet, make a tiny purchase once a year and pay it off right away, just to keep it alive.)

Answer 2

Stop using their card. I have heard of something called opting out. I am not 100% sure of what it is but you can contact them and tell them that you are not accepting the new interest rate. By doing this you are agreeing not to use the card anymore and pay the balance off as per the original agreement. I am not sure of exactly how this works though. I have only seen it mentioned in articles before. I have never tried it.

Here is where I heard about it:
http://www.bankrate.com/brm/news/debt/20070427_credit_card_raises_rate_a1.asp


You will probably want to research this before trying anything. Be warned. You would have a limited time to act on this and I think that using your credit card will nullify your opting out.

Why did they do this? Well, maybe you have had problems with another card or late payments with another business. Many credit cards have universal default where they can up your interest rate based on your business with other people.

Also, some credit card companies will look at other factors such as your debt to income ratio or how much of your available credit you are using. If they do not like what they see, they will raise your rates. The credit card industry is under a lot of attack lately for these practices.

Answer 3

Credit card companies review your credit bureau file at least once a year, but often quarterly for other debt payment history. If you have paid late on another card, filed bankruptcy, been evicted, or reduced your credit score significantly your APR could be impacted at B of A even though their payment was on time. The MBNA merger was not the cause of this decision, nor was VISA, it is a separate bank policy based on the belief that bad payment history or running up debt could impact their account next.

1. Ask them for a lower rate. If they won't comply, just close the account and pay cash since you can't afford to charge on that card.

2. Get a free copy of your credit report from annualcreditreport.com from each of the three bureaus
and view it for fraudulent or inaccurate entries.

I had someone open 3 cards in my name and take over another account I had for years. I filed two police reports and wrote to each company and credit bureau to clear my record

3. Have the credit bureaus dispute any inaccuracies. They have 30 days to update and research each claim.

4. Open a new credit card with zero APR for a year and just
transfer the B of A's balance to that account.

5. Opting out is the practice of giving you a time frame, say 30 days to accept the new rate or close the account at the lower APR. This is usually used in a repricing due to one or two times of missing their payment on the due date, not this situation.

Answer 4

I would have said there was a credit issue they discovered with you, but they did it to me too.

My initial rate with them was quite low. Last month I got my bill and noticed the rate was up to 15.9%.

I usually pay my credit card bills off monthly, have a high credit score and carry less than 5% of my available credit at any given time.

When I called BOA to question them they had no real reason...gave me a load of BS about my intro rate-- I have had the card for years. They finally offered to lower the rate 2%. I actually laughed out loud at her.

I cut it up and will never use it again. I was a great customer, and they don't deserve my business. Granted they don't care about "little me" but if enough people tell them to take a hike...they might have to care.

Good Luck!

Answer 5

You can call and speak to a customer service representative. They will review your record and make a decision as to whether they can lower the interest rate again.

Good Luck!

Answer 6

Call them and negotiate a better rate... there is really nothing much you can do other than closing your card account and getting another.

Answer 7

Use one of those "You Are PreApproved" offers you get in the mail & transfer your balance to new card & then end account with old card.

Answer 8

Get a different card and cancel that one. Transfer your balance to a new card. 24.9% is ridiculous.