topic Re: Bank of America - Please Help in Credit Cards

Bank of America - Please Help

Anonymous — Mon, 13 Apr 2015 00:47:28 GMT

I have been a member on here for a long time - browsing and learning. Thank you for the help!

Last July, I was in the process of buying a home - and stupidly, didn't realize how my Utilization was hurting my credit score.

I had seven cards that were in the 90%+ util range, and a score of about 620.

I pulled 20K out of my savings and paid off the majority of the debt, leaving just a small balance on two cards - not wanting to be 0% utilization.

My score jumped up into the 700 range within the next couple weeks.

Bank of America was my highest limit, at the time, with $7K.

I paid them $4,700 - to which the next cycle, they cut my limit to $2300 - actually increasing my utilization with them!

I called the backdoor number to no avail. Said that they had been monitoring my account, and all kinds of reasons.

They would only consider increasing my limit back with a hard pull - but I was in the process of buying a home so I couldn't do it.

I was upset and told them I had no plans to use this card again, which I still don't.

So for the question - today in the mail, I received a letter informing me that my annual fee is due next month. I haven't used this card for months, and don't want to pay them any more money.

I got on the online chat to see about doing a product change to a no annual fee card, and this is what I was told:

Hector King: You were selected for the annual fee because you present a higher than average credit risk in our portfolio and you currently have a lower than market APR on your credit card. This annual fee allows to us to continue to provide you with access to credit at your current interest rate. Based on your account behavior and credit history, if we were able to approve you for a new account today that account would have a higher rate and or an annual fee.

He then told me six times that it is not possible to change product to a non fee card.

I have a 24.9% rate on this card - and a credit score of 790.

The other six cards I referred to above have raised my limits over the past year to where I have $100,000 available in credit.

AMEX alone bumped me up to $24K.

I am frustrated - and still don't want them to do a hard pull.

Do I just close the account and take the hit on my AAoA? (This is one of my oldest accounts) Or, is there really a way to convert this to a no annual fee card that I can sock drawer for the time being?

Thanks, and sorry for the long read.

Re: Bank of America - Please Help

gdale6 — Mon, 13 Apr 2015 00:51:18 GMT

Your AAoA isnt hit today closed accounts remain on file for up to 10 yrs post close. If they wont at least remove the AF for you on this card or PC it then close it.

Re: Bank of America - Please Help

Ghoshida — Mon, 13 Apr 2015 00:54:58 GMT

@Anonymous wrote:
I have been a member on here for a long time - browsing and learning. Thank you for the help!

Last July, I was in the process of buying a home - and stupidly, didn't realize how my Utilization was hurting my credit score.
I had seven cards that were in the 90%+ util range, and a score of about 620.
I pulled 20K out of my savings and paid off the majority of the debt, leaving just a small balance on two cards - not wanting to be 0% utilization.

My score jumped up into the 700 range within the next couple weeks.

Bank of America was my highest limit, at the time, with $7K.
I paid them $4,700 - to which the next cycle, they cut my limit to $2300 - actually increasing my utilization with them!

I called the backdoor number to no avail. Said that they had been monitoring my account, and all kinds of reasons.
They would only consider increasing my limit back with a hard pull - but I was in the process of buying a home so I couldn't do it.

I was upset and told them I had no plans to use this card again, which I still don't.

So for the question - today in the mail, I received a letter informing me that my annual fee is due next month. I haven't used this card for months, and don't want to pay them any more money.
I got on the online chat to see about doing a product change to a no annual fee card, and this is what I was told:

Hector King: You were selected for the annual fee because you present a higher than average credit risk in our portfolio and you currently have a lower than market APR on your credit card. This annual fee allows to us to continue to provide you with access to credit at your current interest rate. Based on your account behavior and credit history, if we were able to approve you for a new account today that account would have a higher rate and or an annual fee.

He then told me six times that it is not possible to change product to a non fee card.

I have a 24.9% rate on this card - and a credit score of 790.
The other six cards I referred to above have raised my limits over the past year to where I have $100,000 available in credit.
AMEX alone bumped me up to $24K.

I am frustrated - and still don't want them to do a hard pull.

Do I just close the account and take the hit on my AAoA? (This is one of my oldest accounts) Or, is there really a way to convert this to a no annual fee card that I can sock drawer for the time being?

Thanks, and sorry for the long read.

If what's highlighted in bold and red is true, then the BoA CSR is lying to the core.

I see no reason to do business with such organizations.

No need to see credit as personal. Your history stays with you for 10 years after you close. Move on already. Should have closed them yesterday.

Re: Bank of America - Please Help

Anonymous — Mon, 13 Apr 2015 01:00:04 GMT

Agreed, dump the card and don't look back.

Re: Bank of America - Please Help

Anonymous — Mon, 13 Apr 2015 01:19:45 GMT

Between the AA with the CLD, and the absolute bull pucky he's trying to feed you by saying the AF is the price you pay for your allegedly "below market APR" (which is asinine; my CapOne APR isn't even that high!)

It's a consumers' market: all of the products out there with sign on bonuses, competitive rewards programs and lower APR's are proof positive, and your score means you get to have a say in terms.

Unless this card is providing, like, 20% cash back on all purchases, there is absolutely nothing this card is doing for you that can't be done better by another card. Rest easy in taking your business elsewhere.

Re: Bank of America - Please Help

Anonymous — Mon, 13 Apr 2015 01:43:01 GMT

Appreciate the feedback.

I had forgotten that the AAoA was for closed accounts, and not just open. That makes a big difference.

I should have mentioned that when they dropped my credit limit, I paid the remaining balance the same day and haven't paid a dime since.

As such, I checked and they haven't soft pulled me since last July (again, I was about a 620 at the time) - and the interest rate has been the same since 2003 when I opened the account. I know my score wasn't good then.

Closing the account tomorrow. I will give them one more shot over the phone to PC me to a no annual fee first.

Thanks again!

Re: Bank of America - Please Help

newhis — Mon, 13 Apr 2015 02:17:51 GMT

Good luck tomorrow but I don't think they will do anything without a HP. They are very good for some and very bad for others. Too bad they freaked out and CLD you.

Don't take it personally, most of the changes this days are done automaticaly by computer algorithms. BoA is HP happy. It is great that there are other lenders that can give us credit and good deals.

I'm 'happy' with BoA because I was able to get the AF removed and APR lowered, but if they ever do something like this to me I certainly move on.

Re: Bank of America - Please Help

Ghoshida — Mon, 13 Apr 2015 02:43:13 GMT

@Anonymous wrote:
Appreciate the feedback.

I had forgotten that the AAoA was for closed accounts, and not just open. That makes a big difference.

I should have mentioned that when they dropped my credit limit, I paid the remaining balance the same day and haven't paid a dime since.
As such, I checked and they haven't soft pulled me since last July (again, I was about a 620 at the time) - and the interest rate has been the same since 2003 when I opened the account. I know my score wasn't good then.

Closing the account tomorrow. I will give them one more shot over the phone to PC me to a no annual fee first.

Thanks again!

Good luck !

Keep us posted.

Re: Bank of America - Please Help

NRB525 — Mon, 13 Apr 2015 03:05:57 GMT

@Anonymous wrote:
Appreciate the feedback.

I had forgotten that the AAoA was for closed accounts, and not just open. That makes a big difference.

I should have mentioned that when they dropped my credit limit, I paid the remaining balance the same day and haven't paid a dime since.
As such, I checked and they haven't soft pulled me since last July (again, I was about a 620 at the time) - and the interest rate has been the same since 2003 when I opened the account. I know my score wasn't good then.

Closing the account tomorrow. I will give them one more shot over the phone to PC me to a no annual fee first.

Thanks again!

Time out, I would hold off on closing the account.

I have two cards with BofA, both had higher limits prior to the credit crisis. All my cards had high balances, so I was a high risk borrower. Both BofA cards were subject to multiple CLD as I paid down the cards, but I kept paying according to terms, using the low interest offers they had sent me. For the longest time I was only paying down balances, and getting CLD every few months. I even did a test, charged $25 to add to a Starbucks card on December 23, 2012 on the BofA MC. Boom! CLD on January 9, 2013, to $8,800. Message received loud and clear: New charges not liked. So I just continued to pay down.

Then in mid 2014, they started sending me 18 month 0% APR BT offers again. Both accounts. I BT'd a large chunk off the AMEX to another lower BT offer in August 2014, and cringed as I used the BofA AMEX for a charge... Accepted! So I BT'd another amount back to that AMEX in October, actually pulling an amount off a closed card with a 7.99% rate, to take advantage of the 0% APR.

They gave me an auto CLI on the AMEX from $12,700 to $15,700 in February 2015, which was a sign that I was really back in favor. I now do little bits of charging, just to show I can continue to pay down the balance, and pay extra for those new charges.

The AMEX has a 7.9% APR regular rate. The MC has an 11.24% rate. They never suggested I should pay any AF.

I think your situation is, you gave up on the card. With no new charges after you paid it off, they had no reason to SP your file to see how it looked. BofA is one of the finest credit card offering banks in the country if they are allowed to fully understand your situation.

Give up the HP. Keep the card open. I betcha things will work out fine.

Good luck!

Re: Bank of America - Please Help

Anonymous — Mon, 13 Apr 2015 04:15:35 GMT

@NRB525 wrote:
@Anonymous wrote:
Appreciate the feedback.

I had forgotten that the AAoA was for closed accounts, and not just open. That makes a big difference.

I should have mentioned that when they dropped my credit limit, I paid the remaining balance the same day and haven't paid a dime since.
As such, I checked and they haven't soft pulled me since last July (again, I was about a 620 at the time) - and the interest rate has been the same since 2003 when I opened the account. I know my score wasn't good then.

Closing the account tomorrow. I will give them one more shot over the phone to PC me to a no annual fee first.

Thanks again!
Time out, I would hold off on closing the account.

I have two cards with BofA, both had higher limits prior to the credit crisis. All my cards had high balances, so I was a high risk borrower. Both BofA cards were subject to multiple CLD as I paid down the cards, but I kept paying according to terms, using the low interest offers they had sent me. For the longest time I was only paying down balances, and getting CLD every few months. I even did a test, charged $25 to add to a Starbucks card on December 23, 2012 on the BofA MC. Boom! CLD on January 9, 2013, to $8,800. Message received loud and clear: New charges not liked. So I just continued to pay down.

Then in mid 2014, they started sending me 18 month 0% APR BT offers again. Both accounts. I BT'd a large chunk off the AMEX to another lower BT offer in August 2014, and cringed as I used the BofA AMEX for a charge... Accepted! So I BT'd another amount back to that AMEX in October, actually pulling an amount off a closed card with a 7.99% rate, to take advantage of the 0% APR.

They gave me an auto CLI on the AMEX from $12,700 to $15,700 in February 2015, which was a sign that I was really back in favor. I now do little bits of charging, just to show I can continue to pay down the balance, and pay extra for those new charges.

The AMEX has a 7.9% APR regular rate. The MC has an 11.24% rate. They never suggested I should pay any AF.

I think your situation is, you gave up on the card. With no new charges after you paid it off, they had no reason to SP your file to see how it looked. BofA is one of the finest credit card offering banks in the country if they are allowed to fully understand your situation.

Give up the HP. Keep the card open. I betcha things will work out fine.

Good luck!

Those are some good limits and terms, and I can understand you fighting for that relationship. It's great you were able to make it work.

OP's terms aren't nearly as favorable (24+% APR, AF, and lower limits.) The APR has been that since the inception of the account 12 years ago. And they've made it clear they won't PC to a better card, or waive AF.

While usage might address the CLI issue, it's not going to do anything for the APR. Or AF. They haven't done anything to meet OP or show OP that they value his business, even when things were going well, before the AA. 24% APR since 2003.

Your terms, despite a temporary AA, clearly marked you as a more favorable customer that they felt it was worth their while to work with, and re-establish the relationship in kind when you began reaching out. I don't think they feel the same about OP; it's their prerogative, of course, and I won't necessarily make it personal by saying it's their loss or anything. But OP is capable of making business decisions, too. There are other banks out there that will likely provide a more favorable product if OP wants it.

Obviously, it's OP's call. I don't think your situation is quite as similar, though. I know what I would do if I was in OP's shoes. I also know what I would do if I'd been in your shoes. And they wouldn't be the same thing.

Re: Bank of America - Please Help

NRB525 — Mon, 13 Apr 2015 04:26:25 GMT

Yes, OP needs to make the decision, my main point is, the entire prior history of OP's handling of cards was not conducive to getting good terms. That changed after the last SP that BofA did, so BofA no longer has relevant information.

I hear what you are saying, and nearly every poster here who reports a CLD, goes into full on panic mode. I think that is a big mistake. As long as one is paying the card according to terms, the bank may run CLD, and other AA, and that is the bank's perogative. In those situations, the cardholder has done something to trigger the AA, and needs to think through all the options. In my case, the best option was to ignore the CLD, even though they were hitting all cards except CapOne, even though that meant Chase and Citi closed cards, and I closed a Citi card to freeze terms. I just continued to pay the cards down as best I could, maintain what favorable terms I could, cut back on expenses, and work through it for a few years.

OP was able to quickly pay the amounts down, but as far as BofA is concerned, they think OP still has 90% utilization and a 620 score, or whatever snapshot they last had. Indivudual experience varies, and can change over time.

Cheers!

Re: Bank of America - Please Help

bigbang91 — Mon, 13 Apr 2015 05:10:45 GMT

They gave me a big cli, wonder if they reduce my limit if im not using for too long?

Re: Bank of America - Please Help

NRB525 — Mon, 13 Apr 2015 05:38:11 GMT

@bigbang91 wrote:
They gave me a big cli, wonder if they reduce my limit if im not using for too long?

I think if you use the card somewhat, and your scores remain good, they would have no reason to do a CLD. They ran the CLD on me because of the risk they saw from the high balances, after the credit crisis hit. (all the banks were just throwing money out, fine with maxing out cards prior, then the water changed in 2008).

If you don't use the card at all, it becomes a possibility of a CLD, just because they start to lose track of your payment patterns, but even this statement is pure speculation on my part. They may do nothing at all. The bank has their own internal rules that we will never see.

If you like the card and want to keep it, then it's best to find some way to keep the card busy, it doesn't take much busy, and PIF.

Re: Bank of America - Please Help

bigbang91 — Mon, 13 Apr 2015 08:32:37 GMT

I charge up to 100 per month with it, BoA travel reward, a cli of 18k

Re: Bank of America - Please Help

lg8302ch — Mon, 13 Apr 2015 09:04:39 GMT

Welcome to MyFico forum

Did you carry a balance with minimum payment for a longer time before BofA did a CLD? If so this is probably the reason. Paying down utilization instantly gets your scores up but the history and performance on the account takes much longer for lenders to change their internal risk score. This could be the explanation and reason why with a 790 score you still are considered high risk for BofA. If you would like to keep the card then use it in a PIF mode for a while and try again to PC and ask for APR reduction. My scores are in the same range and I never carried a balance for longer than 2-3 months and have gone through numerous PCs with both of my BofA cards. Also APR reductions worked smoothly each time I asked.

If you decide you do not want the card anymore ..then close it and your AAoA is not going to be affected immediately. The card will stay on your report for about 10 years...enough to build AAoA with your other cards. Taking a HP right now might not get you the result desired if BofA considers the account high risk. I would put a Netflix or Hulu recurring charge on it, PIF and try in 6-12 months again. Of course only if you like to keep the account. And do not close it as long as you have a balance on it. This will "double kill" your utilization.

edit: ..forgot to Welcome you

Re: Bank of America - Please Help

NRB525 — Mon, 13 Apr 2015 14:16:53 GMT

@lg8302ch wrote:
Welcome to MyFico forum

Did you carry a balance with minimum payment for a longer time before BofA did a CLD? If so this is probably the reason. Paying down utilization instantly gets your scores up but the history and performance on the account takes much longer for lenders to change their internal risk score. This could be the explanation and reason why with a 790 score you still are considered high risk for BofA. If you would like to keep the card then use it in a PIF mode for a while and try again to PC and ask for APR reduction. My scores are in the same range and I never carried a balance for longer than 2-3 months and have gone through numerous PCs with both of my BofA cards. Also APR reductions worked smoothly each time I asked.
If you decide you do not want the card anymore ..then close it and your AAoA is not going to be affected immediately. The card will stay on your report for about 10 years...enough to build AAoA with your other cards. Taking a HP right now might not get you the result desired if BofA considers the account high risk. I would put a Netflix or Hulu recurring charge on it, PIF and try in 6-12 months again. Of course only if you like to keep the account. And do not close it as long as you have a balance on it. This will "double kill" your utilization.

edit: ..forgot to Welcome you

Not true. The closed accounts I am referring to, all had balances when closed. One with Citi, kept and still shows a $21k CL. The FICO calculations go through some allowances to consider the CL listed even on closed accounts, and seem to allocate the closed balances out of the main score. They still influence visible open balances, and your score, but they are identified as separate from regular cards and there is no double hit to utilization.

The reason for closing an account with a balance is if the CCC wants to change terms, to take away some perpetual or long term positive feature such as a low APR. Closing the account with a balance is a way to opt out of the proposed changes, to lock in those favorable terms. Financial considerations always trump concerns with FICO score.

Re: Bank of America - Please Help

newhis — Mon, 13 Apr 2015 17:26:36 GMT

@Anonymous wrote:
I called the backdoor number to no avail. Said that they had been monitoring my account, and all kinds of reasons.
They would only consider increasing my limit back with a hard pull - but I was in the process of buying a home so I couldn't do it.

I was upset and told them I had no plans to use this card again, which I still don't.

One question, did you call only 1 time? I had to contact them several times until I was able to contact someone that was able to remove the AF.

This is another thing why people don't like BoA, they contact them and they say 'no', but sometimes if you call other numbers/agents you can get better results.

Re: Bank of America - Please Help

slickshoes182 — Mon, 13 Apr 2015 21:52:35 GMT

Have you tried the BOA prequalify site ( https://secure.bankofamerica.com/login/eclo/entry/findCustomizedOffer.go )? I think that would force them to soft pull your credit report and could cause them to see your new stats if they really haven't soft pulled you recently. I think it forces a soft pull if the credit report on file is older than 90 days.

It could also reveal that you qualify for another card so you could apply for a new card and request your credit limit to be transferred over to the new card after applying for it (verify on these message boards that BOA transfers limits). Even if it does not say you are prequalified for a card, you could still be approved for a new card with your stats.

As others have said, I don't think you should take it personally that BOA CLD-ed you. My impression is that they are a big bank that relies heavily on their algorithms and gives customer service representatives little power. If you've tried the backdoor numbers listed on the forums already, you might be able to find Executive Office contact information somewhere to try.

Personally, I find the BOA credit cards very useful. Since it doesn't sound like your burned them (e.g. had no bankruptcy affected them, no late payments, etc), I wouldn't expect them to hold a grudge against so if you did decide to close this card, theres a good chance you could open a new card and get good terms in the future ("rebooting your relationship").

Re: Bank of America - Please Help

Anonymous — Mon, 13 Apr 2015 22:28:34 GMT

@NRB525 wrote:
Yes, OP needs to make the decision, my main point is, the entire prior history of OP's handling of cards was not conducive to getting good terms. That changed after the last SP that BofA did, so BofA no longer has relevant information.

I hear what you are saying, and nearly every poster here who reports a CLD, goes into full on panic mode. I think that is a big mistake. As long as one is paying the card according to terms, the bank may run CLD, and other AA, and that is the bank's perogative. In those situations, the cardholder has done something to trigger the AA, and needs to think through all the options. In my case, the best option was to ignore the CLD, even though they were hitting all cards except CapOne, even though that meant Chase and Citi closed cards, and I closed a Citi card to freeze terms. I just continued to pay the cards down as best I could, maintain what favorable terms I could, cut back on expenses, and work through it for a few years.

OP was able to quickly pay the amounts down, but as far as BofA is concerned, they think OP still has 90% utilization and a 620 score, or whatever snapshot they last had. Indivudual experience varies, and can change over time.

Cheers!

I'd agree with you, except that OP said he was working towards a mortgage. Mortgage trumps CC. OP should dump the card and reconsider BoA after he's closed on the mortgage.