I just got a taste of how the situation is getting really bad for big banks and ultimately their customers.
I have a Bank Of America credit card, I had it since January 2006, with an APR or 9%. It never ever changed.
I always pay my bills on time, my credit score is around 700, I do not have any negative things on my credit...I am basically very careful about how I manage my credit and its score.
I just got a letter from BOA saying that my APR will go from 9% to....ready ? 24% !!!!
I immediately called, and a very patient lady explained to me that everybody is getting the same letter, and that this is happening because "the company and its credit analyst are re-evaluating everybody's credit lines."
I wanted a more precise explanation, why from 9% to 24%, why such a huge change, especially when my credit is always improving with time and nothing has changed (no new loans, no defaults...nothing...only difference is my balance getting smaller every month I make payments).
She said that once again, it is not only with me, it is with everybody, and that some are going from 10% to 30%, just like that.
Of course I have the option to refuse such change by writing a letter, which I will, with the condition that I won't be able to use the card anymore, or they will automatically increase it to 24%. Trust me, it's not like I will miss it after seeing what kind of bank they are.
I have cards from Citi, Capital One and WaMu, and so far they did not send anything like that.
Clear sign that BOA is desperately trying to make some extra money, and the horrible thing is that the lady told me "we can increase it whenever we want, it is up to us."
I used to work with them and I know the company pretty well. If you are considering doing business with them, just do me a favour and be careful....
Mr. Future
I have a Bank Of America credit card, I had it since January 2006, with an APR or 9%. It never ever changed.
I always pay my bills on time, my credit score is around 700, I do not have any negative things on my credit...I am basically very careful about how I manage my credit and its score.
I just got a letter from BOA saying that my APR will go from 9% to....ready ? 24% !!!!
I immediately called, and a very patient lady explained to me that everybody is getting the same letter, and that this is happening because "the company and its credit analyst are re-evaluating everybody's credit lines."
I wanted a more precise explanation, why from 9% to 24%, why such a huge change, especially when my credit is always improving with time and nothing has changed (no new loans, no defaults...nothing...only difference is my balance getting smaller every month I make payments).
She said that once again, it is not only with me, it is with everybody, and that some are going from 10% to 30%, just like that.
Of course I have the option to refuse such change by writing a letter, which I will, with the condition that I won't be able to use the card anymore, or they will automatically increase it to 24%. Trust me, it's not like I will miss it after seeing what kind of bank they are.
I have cards from Citi, Capital One and WaMu, and so far they did not send anything like that.
Clear sign that BOA is desperately trying to make some extra money, and the horrible thing is that the lady told me "we can increase it whenever we want, it is up to us."
I used to work with them and I know the company pretty well. If you are considering doing business with them, just do me a favour and be careful....
Mr. Future
"Lunch ? Lunch Is For Wimps !"