topic Re: B of A raising my fixed rate to variable in Credit Cards

B of A raising my fixed rate to variable

augustus80 — Tue, 07 Apr 2009 00:31:02 GMT

Got a letter in the mail today from Bank of America telling me my 7.9 % fixed rate is changing to a varible rate of 16.25 %. This is rediculous, but much anticipated after hearing other credit card stories lately.

It is a signature visa wordpoints card. I'm wondering if a should switch to a non-signature now so my $10,600 limit will show on my report (it doesn't show credit limit now)?

By the way, I don't have a balance on this card and use it once a month to buy a starbucks coffee so it has activity.

Thanks

Message Edited by augustus80 on 04-06-2009 05:31 PM

Re: B of A raising my fixed rate to variable

Anonymous — Mon, 06 Apr 2009 22:42:49 GMT

Received my notice today.

My rate will be going from 7.9% to 13.65% effective the first day following statement closing date in May, 2009.

Re: B of A raising my fixed rate to variable

Anonymous — Mon, 06 Apr 2009 22:50:30 GMT

I was going to post about this friday when I received my notice. My account is also going from a fixed apr (15.99%) to a variable apr which as of Feb 27 is 25.74%. Yikes. Might as well have kept my Orchard open with that APR - my Orchard was lower Guess they are rethinking that reconn they gave me last year. My new apr is effective the first day following my May statement closing date.

Re: B of A raising my fixed rate to variable

Creditaddict — Mon, 06 Apr 2009 23:40:17 GMT

the increased my dad from 8.9 to 13.65

and my mom from 9.9 to 16.15

they are both locked in on fixed balance transfer for life so does not really matter much

Re: B of A raising my fixed rate to variable

laz98 — Mon, 06 Apr 2009 23:43:38 GMT

we received notice after our CLD that we were now facing a variable 16.9% instead of our fixed 7.9%. we could opt out, but that would tank my gf's scores, so we are just going to suck it up & slowly pay it down.

Re: B of A raising my fixed rate to variable

Anonymous — Tue, 07 Apr 2009 11:59:11 GMT

Creditaddict;

May I suggest that your verify as to the fixed lock in rate.

My notice indicates the Standard Rate for new and outstanding balance transfer balances is increasing and will use the variable rate formula.

No indication as to type of the balance tranfers that would be increased.

Re: B of A raising my fixed rate to variable

Anonymous — Tue, 07 Apr 2009 13:28:54 GMT

I have BofA Platinum NSCS card (plain vanilla platinum card).

About 6 months ago, they decided to jack the rate from low double digits to low twenties. I called and asked for reduction to which they offered previous APR if I don't make any purchases. Arrg, fine.

Seeing that BofA was messing with other people's cards, I was happy to see they left mine alone. I repeatedly called them and asked for other perks, but haven't been able to get any. So, net net it was a neutral experience.

Imagine my surprise that today they decreased APR from 9.90% to 9.15%! Given that other people in this thread see APR increases, I don't see their logic.

My scores are TU 682, EQ 637, EX FAKO 660-690. I did free up about 30% of util with last payment, but haven't done anything to the account lately.

Thoughts?

Re: B of A raising my fixed rate to variable

Anonymous — Tue, 07 Apr 2009 17:18:20 GMT

After all these months of reading about others' credit issues, it finally happened to me: 10.99% fixed rate --> 15.24% variable rate.

BUT....

It was easily fixed (at least partially). I called the number on the back of my card. The credit rep apologized for the increase. She said that rate increased had affected a bunch of customers and was not an adverse action (meaning I am still a bright and shining star). Then, without me prompting her, she offered me an 11.99% fixed rate; I took it.

Granted I still walked away with a net increase, I am just glad that it is not to 15.24% as I was quoted. In the end, I am only revolving a small balance and can just pay it off so I don't even feel the interest rate hike.

BOA is, like most other major banks, in trouble. They are having a hard time digesting Meryl Lynch. I completely understand this, so I am trying to take this all in stride. The important thing is that I have been responsible enough to make sure that I don't revolve any major balances.

No harm no foul. I feel incredibly lucky.

Message Edited by dizzier on 04-07-2009 01:18 PM

Re: B of A raising my fixed rate to variable

Anonymous — Tue, 07 Apr 2009 17:33:03 GMT

@augustus80 wrote:
Got a letter in the mail today from Bank of America telling me my 7.9 % fixed rate is changing to a varible rate of 16.25 %. This is rediculous, but much anticipated after hearing other credit card stories lately.

It is a signature visa wordpoints card. I'm wondering if a should switch to a non-signature now so my $10,600 limit will show on my report (it doesn't show credit limit now)?

By the way, I don't have a balance on this card and use it once a month to buy a starbucks coffee so it has activity.

Thanks
Message Edited by augustus80 on 04-06-2009 05:31 PM

I doubt that switching from signature will do you any good. I have a World Point AMEX card (not signature) and my rate is switching, too. From 9.9 fixed to 15.65% variable.

Re: B of A raising my fixed rate to variable

Anonymous — Wed, 08 Apr 2009 17:03:57 GMT

Received notices from Bank America & 1st National of Omaha.

BA: 7.99% to 18.43%, I have a $12k credit line with $9.5K used.

I am opting out to maintain the 7.99% rate, as I don't anticipate

using the $2.5K balance. I called them with no luck.

1st National 11.99% to 15.99. I have a fixed 4.9% that will

not change. They said I could do a balance transfer now

with the 11.99% before the new rate goes into effect.

I believe they are misinformed and call again.

Re: B of A raising my fixed rate to variable

Anonymous — Wed, 08 Apr 2009 17:11:57 GMT

You don't need to panic as long as you aren't a carrying a balance on it. Make sure that you PIF when you use the card and you won't charged for interest.

Re: B of A raising my fixed rate to variable

Anonymous — Wed, 08 Apr 2009 17:20:43 GMT

My account is closed with a balance and I opt out (because I will) will it hurt my FICO even more?

Re: B of A raising my fixed rate to variable

Anonymous — Wed, 08 Apr 2009 17:24:12 GMT

Well, it's not good to have a closed account with a balance but as long as you are paying it down and the lender is reporting, you will be alright. I'm assuming that you're not applying for new credit anytime soon.

Re: B of A raising my fixed rate to variable

score_building — Wed, 08 Apr 2009 17:50:46 GMT

@laz98 wrote:
we received notice after our CLD that we were now facing a variable 16.9% instead of our fixed 7.9%. we could opt out, but that would tank my gf's scores, so we are just going to suck it up & slowly pay it down.

laz98, why is it that you're saying your gf's scores will tank just because she opts out?

Re: B of A raising my fixed rate to variable

Anonymous — Wed, 08 Apr 2009 18:21:27 GMT

@Anonymous wrote:
Well, it's not good to have a closed account with a balance but as long as you are paying it down and the lender is reporting, you will be alright. I'm assuming that you're not applying for new credit anytime soon.

No.. I've got enough problems...

The BoA was closed after yrs of on time payments and never over the limt due to "Reevaluation of my CR and terms" I will bury my money in the yard before sticking it in BoA.

Message Edited by tiffj on 04-08-2009 11:21 AM

Re: B of A raising my fixed rate to variable

laz98 — Thu, 09 Apr 2009 05:44:24 GMT

my gf is carring a balance of 7k on the card. when they CLD'd her, they left her at 7215 out of 7300. not their fault, of course, we accept responsibility for our debt. but if we opt out, she will no longer have that available credit, so she will be WAAAAAAAAAAAAYYY over on her UTIL for that card, which will tank her scores.

Re: B of A raising my fixed rate to variable

Anonymous — Thu, 09 Apr 2009 15:50:47 GMT

@Anonymous wrote:
@Anonymous wrote:
Well, it's not good to have a closed account with a balance but as long as you are paying it down and the lender is reporting, you will be alright. I'm assuming that you're not applying for new credit anytime soon.

No.. I've got enough problems...

The BoA was closed after yrs of on time payments and never over the limt due to "Reevaluation of my CR and terms" I will bury my money in the yard before sticking it in BoA.
Message Edited by tiffj on 04-08-2009 11:21 AM

Since the card is closed I opt'd out... keeping my 13.2% which is still a mouthful, but better than 27%. It will be PIF by July anyways.

Re: B of A raising my fixed rate to variable

Anonymous — Thu, 09 Apr 2009 22:45:34 GMT

BofA just raised rate on my card to 23.99%... a week after they reduced it to 9.15%.

Re: B of A raising my fixed rate to variable

haulingthescoreup — Fri, 10 Apr 2009 00:10:41 GMT

maks1806 wrote:
BofA just raised rate on my card to 23.99%... a week after they reduced it to 9.15%.

lol, I just choked on my adult beverage.

I'm sorry, because I absolutely know that's not fun, and I'm certainly not laughing at you --that is just such a great example of how confuzzled lenders are these days.

Re: B of A raising my fixed rate to variable

Anonymous — Fri, 10 Apr 2009 16:05:08 GMT

Just got the letter too for my BoA CC. I have had it for 7 years now. Never went over my credit limit, never ever was late on a single payment. Balance right now is zero, and they decided to raise it from a fixed 8.99% to a variable 16.49%. I called them and complained. The representative was honest with me and told me that BoA is hurting real bad because of the economy and they have to make money somehow. He then offered me a fixed rate of 12.99%, which I had to accept since you can never trust a variable APR. I advised him that I am not happy about this and will not use the card anymore and will start looking for a new CC company. He said they will call me if they can get the rate lowered anymore. I guess you can't do anything about it these days