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BofA to charge annual fees on rewards credit cards

Super Contributor

Re: BofA to charge annual fees on rewards credit cards


wmarat wrote:

Those cards still exist, I have recently gotten one and make 4.0% APY.

 

I like my PenFed cashback. I have around $25 monthly back.


I only get .70 cents back from PenFed monthly.  I only charge my cell phone bill to it. 

Message 11 of 34
Valued Contributor

Re: BofA to charge annual fees on rewards credit cards

Do you have better deal on gasoline and/or groceries?
IN VINO VERITAS.
Message 12 of 34
Super Contributor

Re: BofA to charge annual fees on rewards credit cards


wmarat wrote:
Do you have better deal on gasoline and/or groceries?

I use my Kroger 123 card for gas and groceries.   I like the card.  

Message 13 of 34
Senior Contributor

Re: BofA to charge annual fees on rewards credit cards


LynetteM wrote:

creditwherecreditisdue wrote:
Citi is also running a large scale test on AF for certain cards. There was a big hubbub when it started followed by stunning silence. I suspect these tests will prove that imposing AF's won't work and they won't stick. What they will do is piss off a whole bunch of cardholders.

CWCID, I disagree.

 

They are dealing with the silent majority...also known as sheep.

 

I believe that people first thought that all the garbage fees charged by airlines wouldn't work and wouldn't stick. They thought there would be a huge outcry. Instead? Most people stand in line and pay extra fees like baggage fees without even a whine. Why? Because they need/want to fly.

 

Credit card holders may whimper at first, but...they need/want the credit card.

 

Some people will take a stand. Most won't. That's what I think. (I'm a cynical little thing, aren't I?)


How can you possibly compare the fees (you site the baggage fees) that airlines charge every passenger (and they still lose money hand over fist) to an AF that BofA is going to impose on ONE PERCENT of their cardholder base? Cardholders will vote with their feet. There are always going to be other issuers available who will not be charging AF's. Of course that may be the point. I suspect that BofA won't care one whit about any account they lose as a result of charging the AF. They will be the bottom one percent of profitability performers.

Message 14 of 34
Moderator Emerita

Re: BofA to charge annual fees on rewards credit cards


creditwherecreditisdue wrote:

How can you possibly compare ...


Hey, hey, hey; a little more temperate here, please.


Considering that a lot of BofA's rewards cards just give 1% back, I'm certainly not going to pay them $29 annually for the privilege of "earning" 1%. That would mean that I would have to charge $2900 annually just to break even, and then subsequently go back to the pittance of returns.

If I wind up with a fee, they will be more than welcome to take my $18K CL back and extend it to someone else. All along I've said that the BofA "rewards" were their often-high CL's. All their recent changes have definitely moved most of their products into the category that my husband would call "real average."
* 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
Message 15 of 34
Regular Contributor

Re: BofA to charge annual fees on rewards credit cards


How can you possibly compare the fees (you site the baggage fees) that airlines charge every passenger (and they still lose money hand over fist) to an AF that BofA is going to impose on ONE PERCENT of their cardholder base? Cardholders will vote with their feet. There are always going to be other issuers available who will not be charging AF's. Of course that may be the point. I suspect that BofA won't care one whit about any account they lose as a result of charging the AF. They will be the bottom one percent of profitability performers.

 

 Hello Credit, I believe you misread the BoA PR,  They are currently testing the fee on 1% of their customers, 

 

"""We're testing this to see what the feedback is. In terms of any plans going forward, we haven't made any decisions," said Betty Riess, a spokeswoman for Bank of America. She said the fee is being "tested" on less than 1 percent of its credit card accounts globally, but declined to give specific numbers.""

 

I'd hazard a guess if they decide to roll out the fee's it'll likely tag 90% of their cardholders,  That maybe one reason they've been product changing sheepeople to their 'Signature' cards without asking these past fee months,

 

IF they go that route I'll canx my crappy BoA card they converted on me, I did not ask for a Sig card nor will I pay a fee for it,,

 

 

Message 16 of 34
Senior Contributor

Re: BofA to charge annual fees on rewards credit cards

I didn't misread the press release. I posted regarding Citi's "test program" earlier in this thread. It was announced by Citi, but since then you haven't heard a word about it. I just don't see AF programs gaining much traction unless the issuer imposing the fee is intentionally seeking to lose many of the accounts on which the fee is imposed. That may in fact be the purpose of the fee - to get cardholders to close their accounts without inflicting AA and incurring the wrath of Congress.
Message 17 of 34
Established Contributor

Re: BofA to charge annual fees on rewards credit cards

I have a B of A rewards card with an annual fee. Having terrible credit and not really being able to get any other major bank CC, I'm somewhat stuck. :-( 
08/01/2008 - 472 EQ; 523 TU; 454 EX
03/01/2009 - 574 EQ
08/08/2009 - 648 EQ
01/27/2010 - 671 EQ
07/04/2010 - 713 EQ
01/05/2011 - 730 EQ
05/14/16 - 762 EX
Message 18 of 34
Senior Contributor

Re: BofA to charge annual fees on rewards credit cards

I agree with Hauling completely. Under no circumstances will I pay one red cent for their lame World Points.
Here we go again...
Message 19 of 34
Senior Contributor

Re: BofA to charge annual fees on rewards credit cards

Yes! World Points is very lame.

 

I requested a PC and they mistakenly changed my Cash Rewards Amex to an Accelerated Rewards Amex rather than an Accelerated Cash Rewards Amex. I got that corrected ASAP!

Message 20 of 34