Credit Card Rate Hike!!!

Posted Mon July 20, 2009 9:52 pm, by William S. written to Bank of America

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I have a credit card account with Bank of America joint with my wife. We initially had an apr of below 5.0%. We've been using the card and unfortunately have it pretty much maxed out. Due to some financial issues we are unable to pay down the balance as quickly as we'd like so we've been close to our credit limit for several months. I then check our statement and see that our APR was jacked up to 24.99%!! I call to see what happened and they tell me that because we have kept such a high balance that they had to raise our APR!! What?!?! I told them that it would be soooo difficult to pay down our balance with this APR. They then tell me that we could go on a program where we would have 5 years to pay down our card at a fixed rate/payment, but then we would have to close the account. We all know what happens to our credit when your credit card account is closed and you still have a balance on it. So we decided not to go that route and figure out a way to pay down the balance asap.

I would've thought that during these economic troubling times that these banks would be more helpful, but it looks like they are trying to make money off of people that are struggling while hurting their credit at the same time. Extremely unhappy and will make sure to let people know about Bank of America credit.

Simply lower our rate to what it was (somewhere under the 5.00% range) so that we can work at paying it down quickly. We do not want to close the account because we don't want to negatively effect our credit score. We would also like to have the opportunity to pay down the balance and utilize the credit card in the future.

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Re: Credit Card Rate Hike!!! by Steelkitten Posted Wed July 22, 2009 @ 10:25 PM good luck BOA is know for hiking their rates and wanting to work with you. Try being on time with payments and current with payments and they still hike the rates. they could care less about the people just want to get higher interest rates before the new law kicks in. Reply You want everything by Donno Posted Tue July 21, 2009 @ 12:00 AM You have been maxing out your credit card due to financial hardship for several months. This is like begging to get shafted. It should have come as no surprise at all that your rate skyrocketed. I think I have a card at around 25% interest - I never look because I pay my cards on time each and every month, and always have. You also want to use the card, have a 5% rate, and not have the fact you are running near your credit limit (utilization) affect your credit score (it does). This is a fantasy world. "We are unable to pay the card down" and "we can work on paying it down quickly" are totally contradictory. To me the best thing to do would be give up using credit cards altogether. Reply