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Regular Contributor
itsjustmeibe
Posts: 204
Registered: ‎02-19-2008
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Bank of America - Minimum Payments?

Does Bank of America always only require 1% of the balance as a minimum payment? I just got a personal card and a business card in the last 5 months and have a 0% intro rate. I'm just wondering if this is a teaser so that when my promo is over, I would still owe them a lot that would start being charged at the regular rate.
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mphan
Posts: 94
Registered: ‎02-02-2009
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Re: Bank of America - Minimum Payments?

They will not raise minimum payment unless you do something wrong like go over CL limit, pay late...

 

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Trishco
Posts: 279
Registered: ‎07-12-2007
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Re: Bank of America - Minimum Payments?

Some time back my minimum dropped from 2% to 1% plus the previous months interest charges.  As I recall, this occurred right after my CLD.
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haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: Bank of America - Minimum Payments?


itsjustmeibe wrote:
Does Bank of America always only require 1% of the balance as a minimum payment? I just got a personal card and a business card in the last 5 months and have a 0% intro rate. I'm just wondering if this is a teaser so that when my promo is over, I would still owe them a lot that would start being charged at the regular rate.

That's what I had with my BT, too. And you're right, it's a great way for them to have a nice fat balance to charge the full APR on when the 0% offer expires.

Just a general comment on BT's: no bank gives 0% BT's because they think we're cute! They are hoping to make money via the initial BT fee, by any late payments, and then by the failure to pay off the balance before the regular APR kicks in. Not a scam, either; just doing business. Caveat emptor. :smileywink:
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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athensguy
Posts: 1,291
Registered: ‎02-26-2008

Re: Bank of America - Minimum Payments?

[ Edited ]
Bank of America's minimum payment is 1% + finance charges, so if you don't have any finance charges, it's 1%.
Message Edited by athensguy on 04-18-2009 11:31 AM
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txjohn
Posts: 4,214
Registered: ‎09-12-2008
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Re: Bank of America - Minimum Payments?

To translate:  1% minimum means 100 months to get 100% principle.  100 months is almost 9 years.  And that would be if no new charges occurred.

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09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
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athensguy
Posts: 1,291
Registered: ‎02-26-2008
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Re: Bank of America - Minimum Payments?


txjohn wrote:
To translate:  1% minimum means 100 months to get 100% principle.  100 months is almost 9 years.  And that would be if no new charges occurred.
It's actually longer than that. If you continued making the same principle payment as the first month, it would take 100 months, but if you make the new minimum payment each time it will take like 22 years.
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74king
Posts: 403
Registered: ‎04-08-2009
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Re: Bank of America - Minimum Payments?


athensguy wrote:

txjohn wrote:
To translate:  1% minimum means 100 months to get 100% principle.  100 months is almost 9 years.  And that would be if no new charges occurred.
It's actually longer than that. If you continued making the same principle payment as the first month, it would take 100 months, but if you make the new minimum payment each time it will take like 22 years.

It means in DEBT FOR LIFE:smileysad:. DO BE FOOLISH...Pay that baby off every month in full. Better yet, don't use them. That's what they want is for you to just pay that minimum.

Equifax 787, TransUnion 793, Experian ? FAKO--> Who Cares
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txjohn
Posts: 4,214
Registered: ‎09-12-2008
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Re: Bank of America - Minimum Payments?

Right, if you don't keep the payment static (principle) it is as king said, practically a mortgage.  That little convenience of purchase power costs a whole lot more than most imagine, if paying minimums or even double minimums.

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
Frequently Requested Threads * FICO High Achievers  *  FICO Score Estimator


09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
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ezover
Posts: 69
Registered: ‎02-27-2009
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Re: Bank of America - Minimum Payments?

Is there a credit card calculator on myfico??
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