Account update from Bank of America

[lamboguy]

thank you for being a valued card holder since 1992.

as of July 1, 2017 you late penalty charge will increase from $35 to $38. along with that your annual compounded interest rate is increasing from 22.9% to a flat 30%

thank you for being such a valued customer.

[thaskalos]

thank you for being a valued card holder since 1992.

as of July 1, 2017 you late penalty charge will increase from $35 to $38. along with that your annual compounded interest rate is increasing from 22.9% to a flat 30%

thank you for being such a valued customer.

Imagine if they DIDN'T value you so much as a customer...

[Fred Mertz]

I was gone from home for about 30 days on a cruise about 4 years ago.

I knew I'd be a day or two late on my AMEX bill - I didn't do the online banking or payment. No biggie, I thought.

They treat you like a number. I got a letter throwing me into a 29% interest category of deplorables.

I took great pleasure in cutting my card in half and sending in a hand written FU letter to them. I hope the employees put it on the bulletin board.

My VISA card people must hate me. Zero interest payments for about the past 4 years.

[cj]

I'm assuming this was done for a missed or late payment, right? I've been with BOA a long time for a credit card and also have a very low interest rate car loan through them. I've worked my interest rate from around 28% down to 12% over the years, usually by calling and asking for a reduction. They've always treated me well. But, I haven't missed or been late.

[PaceAdvantage]

I'm assuming this was done for a missed or late payment, right?I'm guessing it's just a general notice sent out informing everyone that they are raising their late payment fee plus interest rates in case you miss a payment. They aren't the only bank that does this...:mad:

[Parkview_Pirate]

My BOA card shows an interest rate of 14.99%, but I've never asked for a reduction - because I never carry a balance. In bold print on my statement, it states a late payment may trigger a "penalty rate" of 29.99%. Hmmmm.

I only got the card for Alaskan Air miles when I was traveling a lot more. May need to cancel it now. Like Thask says, I don't want to find out when I'm not a valued customer....

[Jess Hawsen Arown]

To increase the nightmare, paying all of your credit cards before the interest kicks in is great for your bottom line. However, its terrible for your credit rating. You will not get as good a deal on big ticket items like cars, mortgage, and the like, as people who have paid them interest through the years.

[cj]

To increase the nightmare, paying all of your credit cards before the interest kicks in is great for your bottom line. However, its terrible for your credit rating. You will not get as good a deal on big ticket items like cars, mortgage, and the like, as people who have paid them interest through the years.

I have never found that to be the case. A major factor in your score is how much of your available credit you have, and what percentage you are using. Having a 0 balance is always a good thing and I've never been penalized for paying things off fast, credit cards included. You do want to use them occasionally so the account doesn't get closed. If that happens it drops your available credit and that can hurt your score.

I really never knew much at all about credit. My parents never taught me and I never really needed it until I got older. I was in for a pretty big surprise. Even though I made plenty money and didn't have bad credit, getting loans for a car and later a house was very hard. I learned everything I could about your credit rating and how to build it and have done very well on that front. I've also taught my kids about it as soon as they started working and helped them get credit cards. My 23 year old daughter just bought a house at a good rate by herself, so I'm guessing I did it right. I couldn't get a $500 loan when I was 23.

Credit card companies get a fee when you use them. It doesn't matter when you pay, they make money from the merchant when you use the card. Most credit card companies make close to 60% of revenue from these fees, much more than they do from interest. Moral of the story---they don't punish your credit for paying fast. I've heard that before and it simply isn't true.

[Tom]

Credit cards are worse than the mafia.
Their rates are ussery.

Need much tighter regulation on banks and other financial institutions. Much tighter.

[RobertCalifornia]

Credit card companies are evil. 30% come on, that's how much you should pay in restitution if you stole the money, not borrowed it. It's all rigged. Shows how by not paying interest using credit cards what the real costs are to people that can't get out of debt. It's like getting free pies and cakes from slave owners which enslave more people to pay for them.

[Clocker]

Need much tighter regulation on banks and other financial institutions. Much tighter.

You sound like a Democrat, trying to protect people from their own stupidity. :D

What we need is to teach kids in school a lot more about math and finance and economics and a lot less about crap like gender identity grammar and sustainable safe space protocols.

[cj]

Credit cards are worse than the mafia.
Their rates are ussery.

Need much tighter regulation on banks and other financial institutions. Much tighter.

No argument from me on that. I'm just saying I understand them, which includes understanding they suck.

[Parkview_Pirate]

To increase the nightmare, paying all of your credit cards before the interest kicks in is great for your bottom line. However, its terrible for your credit rating. You will not get as good a deal on big ticket items like cars, mortgage, and the like, as people who have paid them interest through the years.

Uh, no. Bring cash to the table, and tell the credit card companies and the credit reporting agencies to take a flying leap. As far as my credit rating goes, it's over 800 and I haven't paid interest on a credit card or carried a balance for over 20 years.

[Lemon Drop Husker]

Uh, no. Bring cash to the table, and tell the credit card companies and the credit reporting agencies to take a flying leap. As far as my credit rating goes, it's over 800 and I haven't paid interest on a credit card or carried a balance for over 20 years.

Ummmm...., no. That isn't how it works.

Without any credit, your Credit Score goes down, or you have no Credit Score at all. You need to have a reasonable amount of reportable debt on a monthly basis to keep any kind of reasonable Credit Score.

Certain types of credit weigh heavier than others. Obviously a mortgage and a car weighs heavier than a credit card or crap forbid the dreaded store card (like JC Penney's or Macy's) that everybody needs to get rid of. If you have a Credit Card(s), the lower the balance the better, but monthly payments are great along with keeping a low balance with regards to your total credit limit.

Without Experian, Equifax, Transunion, or Innovis getting regular monthly reports on your credit, due to having open trade lines, you will have no Credit Score whatsoever regardless of what you tell BOA, Chase, or any credit bureau agency of your choice.

[cj]

Ummmm...., no. That isn't how it works.

Without any credit, your Credit Score goes down, or you have no Credit Score at all. You need to have a reasonable amount of reportable debt on a monthly basis to keep any kind of reasonable Credit Score.

Certain types of credit weigh heavier than others. Obviously a mortgage and a car weighs heavier than a credit card or crap forbid the dreaded store card (like JC Penney's or Macy's) that everybody needs to get rid of. If you have a Credit Card(s), the lower the balance the better, but monthly payments are great along with keeping a low balance with regards to your total credit limit.

Without Experian, Equifax, Transunion, or Innovis getting regular monthly reports on your credit, due to having open trade lines, you will have no Credit Score whatsoever regardless of what you tell BOA, Chase, or any credit bureau agency of your choice.

He never said he doesn't have a credit card or that he hasn't used one.

[RobertCalifornia]

I tried instead of loaning a friend money, loaning a friend money on a peer lending company website, and the friend wasn't even able to get past the lending company website based on defaults. I had thought the websites were there to facilitate these transactions, not make sure they don't happen. It didn't seem right. There are people getting almost nothing in savings accounts, and people tricked into 30% interest like mentioned that should be able to help each other, but not the case. Seems like coordinated policies to me. Those sites I heard sold out being bought off by banks and are there to facilitate the banks into making loans it seems. These private loans often aren't paid, because they're not official, and guess what I wasn't. She's in jail now(junkie).

[JustRalph]

I have found that you need to keep just a little back and forth going on a credit card to nurse your credit score.

Here's one for ya, Recently I sold a rental property. I closed two days before a mortgage payment was due. I spoke with the bank the day before closing and was told not to worry about the payment. The transfer of funds did not occur for five days. Three months later the bank reports me to the three credit bur. As a late mortgage payment. Knocks my score from 834 to just under 800.
:bang:

I am in early negotiations on a 2mil business loan.....let's just say the timing is a bitch. :bang:

[Parkview_Pirate]

Ummmm...., no. That isn't how it works.

Without any credit, your Credit Score goes down, or you have no Credit Score at all. You need to have a reasonable amount of reportable debt on a monthly basis to keep any kind of reasonable Credit Score.

Certain types of credit weigh heavier than others. Obviously a mortgage and a car weighs heavier than a credit card or crap forbid the dreaded store card (like JC Penney's or Macy's) that everybody needs to get rid of. If you have a Credit Card(s), the lower the balance the better, but monthly payments are great along with keeping a low balance with regards to your total credit limit.

Without Experian, Equifax, Transunion, or Innovis getting regular monthly reports on your credit, due to having open trade lines, you will have no Credit Score whatsoever regardless of what you tell BOA, Chase, or any credit bureau agency of your choice.

Uhhh, again, no.

My reference to using cash was in response to JHA's post about "getting a good deal" on big ticket items. While it is true the interest rate on a loan reflects your credit, there's no law preventing one from living within their means and paying cash. Even for a house. And cash will provide the leverage to get a better deal than any loan.

You absolutely do NOT need any debt to maintain a good credit score, that is unless you buy into the propaganda of the credit card companies. I've not had a mortgage for four years, don't carry a balance, and am currently not working. Yet Experian gives me a score of 824 (out of 850). And 4 reasons why my score isn't as good as it can be....:D...including the nonsensical "account balances are too high compared to loan amounts" (I have no loans), and "balances on cards too high compared to credit limits" (my current balance is $0 on one card with a $12,000 limit, and $325 on a card with a $20,000 limit).

Your credit score is also a reflection of assets, job history, tax status, and utility payments, none of which generate income for banks, and therefore are not stressed as being important.

There's a sensible approach to using credit, which most Americans are not well-versed in. There's also the even more sensible approach to not go into debt at all.

As a side note, and back on topic with BOA, I called them today to take care of a problem I had getting dinged with an annual fee on one card, which I'm replacing with a "no annual fee cash rewards card". No static, and the lady was quite helpful. We'll see if the credit is posted in a couple days, per her promise....

[Lemon Drop Husker]

Uhhh, again, no.

My reference to using cash was in response to JHA's post about "getting a good deal" on big ticket items. While it is true the interest rate on a loan reflects your credit, there's no law preventing one from living within their means and paying cash. Even for a house. And cash will provide the leverage to get a better deal than any loan.

You absolutely do NOT need any debt to maintain a good credit score, that is unless you buy into the propaganda of the credit card companies. I've not had a mortgage for four years, don't carry a balance, and am currently not working. Yet Experian gives me a score of 824 (out of 850). And 4 reasons why my score isn't as good as it can be....:D...including the nonsensical "account balances are too high compared to loan amounts" (I have no loans), and "balances on cards too high compared to credit limits" (my current balance is $0 on one card with a $12,000 limit, and $325 on a card with a $20,000 limit).

Your credit score is also a reflection of assets, job history, tax status, and utility payments, none of which generate income for banks, and therefore are not stressed as being important.

There's a sensible approach to using credit, which most Americans are not well-versed in. There's also the even more sensible approach to not go into debt at all.

As a side note, and back on topic with BOA, I called them today to take care of a problem I had getting dinged with an annual fee on one card, which I'm replacing with a "no annual fee cash rewards card". No static, and the lady was quite helpful. We'll see if the credit is posted in a couple days, per her promise....

My apologies, I obviously didn't interpret your previous comments as what you have laid out here.

Paying bills, and more importantly loans, on time is without any doubt the #1 predictor of one's Credit Score. However, to get into the echelons of 800+ scores, you need numerous things such as years at job, years at residence, length of credit, number of open trade lines, income, debt to income ration, housing/rent to income ratio, marital status, # of children.. and the list goes on.

And yes, many Americans don't have a sensible relationship with credit and often "out-borrow" their means. Budget? What the heck is a budget? You mean I can't spend more than I make?

[cj]

And yes, many Americans don't have a sensible relationship with credit and often "out-borrow" their means. Budget? What the heck is a budget? You mean I can't spend more than I make?


People want instant gratification. I take a lot of gratification in buying something I know I've saved for and can pay for now personally, but that took learning some discipline!

[therussmeister]

thank you for being a valued card holder since 1992.

as of July 1, 2017 you late penalty charge will increase from $35 to $38. along with that your annual compounded interest rate is increasing from 22.9% to a flat 30%

thank you for being such a valued customer.

30%! That's Parxian rates.