Posts: 9
Registered: ‎07-19-2008

Finance Charges Increasing As Balance Drops!!

I've been faithfully paying down a BoA credit card since Jan 2008.  I've been tracking what the minimum payment is each month (paying $200 more than the minimum each month) and what the overall balance is.  I noticed this month that my minimum payment was HIGHER than last month, so I started looking into why.
What I see is that the APR for Cash Advances is 4% higher than the Purchases or Balance Transfers.  The balance related to Cash Advances is INCREASING even though I haven't used the card for anything in probably eight months or more.  This increase is affecting my fianance charge...increasing it!
Bottom line is that I'm starting to see a smaller return on the extra dollars I'm putting toward this card each month, because the finance charge keeps increasing.
Does anyone have any suggestions as to how I can get this to change? 
I'm assuming I'm a victim of the fact that the BoA is applying my payments to the lower interest portions of my balance instead of evenly across the board (along with my own stupidity for using the card for cash advances), but wanted to see if there was something that could be done.
Moderator Emeritus
Posts: 3,417
Registered: ‎12-27-2007

Re: Finance Charges Increasing As Balance Drops!!

Call them and ask.  :smileyhappy:
From 700 in 2008 to 498 in 2012...
4/23/12 -- BK 13 date of filing EQ = 505
4/18/12 -- EQ 498
12/5/13 -- EQ 669
Here we go.... back on track.
Epic Contributor
Posts: 22,695
Registered: ‎10-23-2007

Re: Finance Charges Increasing As Balance Drops!!

did you take a cash advance at one time?
if so, you will not pay that balance off until the entire account is paid off, might want to bt somewhere else because like you say that cash advance is eating up your progress... I would always do bt vs. cash advance, most banks frown on cash advances
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