topic Re: BofA lowered APR automatically? (by almost half) in Credit Cards

BofA lowered APR automatically? (by almost half)

on — Mon, 20 May 2024 17:37:41 GMT

Just got an email from Bank of America stating they lowered my APR from over 25% to around 13%. None of the other cards I hold have close to this APR. Is this a common move by BofA and other card companies? Should I be trying to call my other card issuers to do the same?

The small print is

Your new variable APRs for Purchases and Balance Transfers are calculated using the variable rate formula of an index (U.S. Prime Rate) plus your new margin of 4.xx percentage points, and will vary with the market based on changes to the U.S. Prime Rate. As of 4/30/2024, the U.S. Prime Rate is variable 8.50%. Please see your Credit Card Agreement for details.

Re: BofA lowered APR automatically? (by almost half)

SouthJamaica — Mon, 20 May 2024 17:59:52 GMT

@on wrote:
Just got an email from Bank of America stating they lowered my APR from over 25% to around 13%. None of the other cards I hold have close to this APR. Is this a common move by BofA and other card companies? Should I be trying to call my other card issuers to do the same?

The small print is
Your new variable APRs for Purchases and Balance Transfers are calculated using the variable rate formula of an index (U.S. Prime Rate) plus your new margin of 4.xx percentage points, and will vary with the market based on changes to the U.S. Prime Rate. As of 4/30/2024, the U.S. Prime Rate is variable 8.50%. Please see your Credit Card Agreement for details. 

Congratulations. That's a shocker. I don't think calling your other card issuers will have a similar outcome.

Re: BofA lowered APR automatically? (by almost half)

galahad15 — Mon, 20 May 2024 18:05:45 GMT

Congratulations!

Re: BofA lowered APR automatically? (by almost half)

AzCreditGuy — Mon, 20 May 2024 18:20:54 GMT

Congrats and B of A hates me lol.....they only lowered me down by 3% but doesnt matter if it was 13% never would leave a long balance on the card, ever again.

Re: BofA lowered APR automatically? (by almost half)

Rdbeetle — Mon, 20 May 2024 19:12:53 GMT

Congrats on your lower BofA APR!

Re: BofA lowered APR automatically? (by almost half)

TrapLine — Mon, 20 May 2024 19:28:09 GMT

Unreal!

In the past we would read about Apr reductions auto or customer request. Not much on the lower side until yours!

Congrats!

Re: BofA lowered APR automatically? (by almost half)

NoMoreE46 — Mon, 20 May 2024 19:35:06 GMT

Wow

Re: BofA lowered APR automatically? (by almost half)

danzig47 — Mon, 20 May 2024 20:52:54 GMT

That's awesome. Did you increase your banking relationship with them recently or anything like that?

Re: BofA lowered APR automatically? (by almost half)

FlaDude — Mon, 20 May 2024 21:35:50 GMT

That's an awesome APR!

Re: BofA lowered APR automatically? (by almost half)

Zoostation1 — Tue, 21 May 2024 00:07:40 GMT

Wow, that's great! My lowest APR is about double that

Re: BofA lowered APR automatically? (by almost half)

on — Tue, 21 May 2024 00:26:56 GMT

I've had a checking account with them since they were Fleet, but I wouldn't say my average balance has changed dramatically in the last 5 years. I zeroed out a balance a few months ago and haven't touched the card since. Not even sure where it is, so I need to request a new one. This puts it at the top of the list if I need to use a CC

Re: BofA lowered APR automatically? (by almost half)

nbnsraz — Tue, 21 May 2024 04:43:38 GMT

Hmm, I got an email like that, I was a bit surprised they did it on my baby starter card they haven't raised the limit on in over a decade. I keep requesting a higher limit every 3 month on my Customized Cash Rewards card, but alas, they keep mentioning past last payments from when I got behind 60 days about 7 years ago... Here's what the email looks like:

APR Reduction Email

Re: BofA lowered APR automatically? (by almost half)

nytokyobred79 — Tue, 21 May 2024 05:32:09 GMT

That's fantastic

Re: BofA lowered APR automatically? (by almost half)

Dilbert934 — Thu, 23 May 2024 12:44:12 GMT

Last year I called BOA with a question and was randomly offered 5.99% for 12 months. I don't carry a balance, but I went ahead and took it.

Back in 2021 Amex send a letter offering 0% for 12mo on my Delta Skymiles platinum. I jumped on that as I was planning on purhasing some ham radio equipment the next month. $3k free use of their money for a year. Not a bad deal.

Re: BofA lowered APR automatically? (by almost half)

Anonymous — Thu, 23 May 2024 15:27:55 GMT

@Dilbert934 wrote:
Last year I called BOA with a question and was randomly offered 5.99% for 12 months. I don't carry a balance, but I went ahead and took it.

Back in 2021 Amex send a letter offering 0% for 12mo on my Delta Skymiles platinum. I jumped on that as I was planning on purhasing some ham radio equipment the next month. $3k free use of their money for a year. Not a bad deal.

Temporary rate reduction offers like these are common (not to say they aren't useful!) Where OP (and now others) rate reduction differs is that it is not fixed term, just the new rate

Re: BofA lowered APR automatically? (by almost half)

Dilbert934 — Thu, 23 May 2024 20:54:55 GMT

@Anonymous wrote:
@Dilbert934 wrote:
Last year I called BOA with a question and was randomly offered 5.99% for 12 months. I don't carry a balance, but I went ahead and took it.

Temporary rate reduction offers like these are common (not to say they aren't useful!) Where OP (and now others) rate reduction differs is that it is not fixed term, just the new rate

Yea, it was more of a DP. I've been with BOA since HS and had their CC for about 30 years and have never seen an actual rate drop.

Re: BofA lowered APR automatically? (by almost half)

Gregory1776 — Fri, 24 May 2024 02:06:35 GMT

lol APRs are absurd right now. My lowest is 18% from PenFed. Everything went up.

US Bank Platnum is 19.74%

Re: BofA lowered APR automatically? (by almost half)

Gregory1776 — Fri, 24 May 2024 02:09:52 GMT

My utilization being so high is very likely why I stopped seeing them. There when you don't need it, gone when you do.

Re: BofA lowered APR automatically? (by almost half)

FicoMike0 — Fri, 24 May 2024 02:12:42 GMT

Congratulations!