A Credit Card You Want to Toss

[weswelker#83]

Bank of America abruptly notified cardholders in good standing their rates would skyrocket if they didn't opt out fast. Is BofA greedy or needy?

Credit-card issuers have drawn fire for jacking up interest rates on cardholders who aren't behind on payments, but whose credit score has fallen for another reason. Now, some consumers complain, Bank of America (BAC) is hiking rates based on no apparent deterioration in their credit scores at all.

The major credit-card lender in mid-January sent letters notifying some responsible cardholders that it would more than double their rates to as high as 28%, without giving an explanation for the increase, according to copies of five letters obtained by BusinessWeek.

Full Article:
http://www.businessweek.com/bwdaily/...mpaign_id=yhoo

[reflexblue]

About three years ago Citi Bank tried to do the same with me. I got a monthly statement in which the apr had been raised to 28%. I had never missed a payment,I called and wa told because I was late on a payment on an AMEX card they had the right to jack my rate up. I asked for the current balance,wrote a real nasty letter,and where ever I swore in the letter I used a piece of the Citibank credit card I had cut up to cover the bit of foul language. The thing is how many people out there have the ability to just write a check for $3000 dollars to pay off a card and get ridd of it? I think actually on this board quit a few,but thats the exception.

And now that I'm thinking about it BOA tried to do to me what you opened you're post with last year. I called them and was told the interest rate that had been raised (even though I hadn't missed a payment) would stay the same. Again I asked for the balance a payed it off and canceled the card. These preditory practices need to be addressed by congress. I'm sure it won't happen anytime within the next 11 months. I very rarely use credit cards any longer,and counsel my kidds to do the same. Now its straight cash homey.

[Real World]

Those companies suck a giant ho....anyway, they all blow, but the trick is not to spend what you don't have. When I got out of college I had $7+k in CC debt. In the cafeteria at school they used to hand out CC's with a bag of M&M's. Hey, what can I say, I was always hungry . Anyhow, 4 years & $7 or $8k later, I had a graduation party & my parents let me keep the proceeds. Well, they let me transfer the proceeds to the CC companies. I vowed at that point never to have a balance on a CC ever again. Do I want an LCD HDTV? Yup. Do I have one? Nope. Do I want a PS3? Yup. Do I own one? Nope. Do I want to buy new cloths so I don't have to rotate the same old uniforms everytime I go out? Yup. Do I buy new cloths all the time? Nope. Now, I understand some people need that credit cuz they don't have much, but you simply can't spend what you don't have.

[STFarmy]

Originally Posted by Real World

Those companies suck a giant ho....anyway, they all blow, but the trick is not to spend what you don't have. When I got out of college I had $7+k in CC debt. In the cafeteria at school they used to hand out CC's with a bag of M&M's. Hey, what can I say, I was always hungry . Anyhow, 4 years & $7 or $8k later, I had a graduation party & my parents let me keep the proceeds. Well, they let me transfer the proceeds to the CC companies. I vowed at that point never to have a balance on a CC ever again. Do I want an LCD HDTV? Yup. Do I have one? Nope. Do I want a PS3? Yup. Do I own one? Nope. Do I want to buy new cloths so I don't have to rotate the same old uniforms everytime I go out? Yup. Do I buy new cloths all the time? Nope. Now, I understand some people need that credit cuz they don't have much, but you simply can't spend what you don't have.

Bingo. I've never carried a debt on a credit card, simply because I refuse to pay the ridiculous rates. I just make sure to spend within my limits every month, then pay it off. It builds credit really fast and teaches good spending habits. Oops, looks like I'm on a soapbox.

But seriously, to soften the impact of any impending economic troubles, people should learn to spend within their limits and pay off as much debt as possible.

[Real World]

Originally Posted by STFarmy

Bingo. I've never carried a debt on a credit card, simply because I refuse to pay the ridiculous rates. I just make sure to spend within my limits every month, then pay it off. It builds credit really fast and teaches good spending habits. Oops, looks like I'm on a soapbox.

But seriously, to soften the impact of any impending economic troubles, people should learn to spend within their limits and pay off as much debt as possible.

I think we've really reached a point where modern ecomonic conditions require the education system to teach money management. Our parents never had the credit availability people have today. Futhermore, the electronics explosion has added another element to lifestyle costs. Schools should have courses that teach kids, teens maybe, how to manage earnings in conjunction with the cost of living. I think that would go a long way into showing people at a young age, what portion of their salary should go to which need, and what certain obligations could cost you long term.

[reflexblue]

Todays economy runs on debt,most peoples eyes are bigger than their wallets or bank accounts. One of the worst things ever devised was the CC it allows people of poor or moderate means to purchase all the goodies they see advertized,and that make them feel like they're somebody. This ultimatly leads to a bottomless pit of debt,and bankruptcy. Which we've seen in the housing market affects the economy. One of these days I'm going to write a post about what I would call "slow motion depression" based on the events that caused the crash of '29, that I see occuring in the lst few years or more.
RW my oldest daughter is in the same boat you were, in collage see got a CC and ran the debt up to the same numbers you did. I got her to transfere the debt to an interest free card,ahh BOA. I'll have to get on that right away.

[patsfan13]

Don't have credit cards just a debit card, they are a ripoff.

[Real World]

Originally Posted by reflexblue

Todays economy runs on debt,most peoples eyes are bigger than their wallets or bank accounts. One of the worst things ever devised was the CC it allows people of poor or moderate means to purchase all the goodies they see advertized,and that make them feel like they're somebody. This ultimatly leads to a bottomless pit of debt,and bankruptcy. Which we've seen in the housing market affects the economy. One of these days I'm going to write a post about what I would call "slow motion depression" based on the events that caused the crash of '29, that I see occuring in the lst few years or more.
RW my oldest daughter is in the same boat you were, in collage see got a CC and ran the debt up to the same numbers you did. I got her to transfere the debt to an interest free card,ahh BOA. I'll have to get on that right away.

It happens to most college students flex. CC companies like to target colleges because the consumer pool is young and dumb, but intelligent enough to be going to school, which means eventually making $$. From their end it's smart business. I think the changes in the montary structure of this country require education. Obviously that won't solve the glutonous ideology Americans have, but it might help. BTW, my sis is awful with CC debt. She did what me & your daughter did, and paid it off eventually with a bail out from my pizzed off parents, only to double her debt later on. My parents, as pizzed off as they are again, refuse to help her. She has to learn on her own.

[QuiGon]

I got that Patriots credit card and was pissed when BoA bought it over from MBNA... I don't care about the rates or anything like that because I am generally not paying interest, but I just hate their horrible customer service.

[DropKick Flutie]

Originally Posted by Obi-Wan

I got that Patriots credit card and was pissed when BoA bought it over from MBNA... I don't care about the rates or anything like that because I am generally not paying interest, but I just hate their horrible customer service.

The next company with good customer service will be the first.