BoA and the skyrocketing interest rate

[Anonymous]

Hi, folks,

I've spent much of my Sunday reading this board. What an education! I signed up for the free month of SW and found my EQ score is 683. Not too shabby, especially considering that it was 669 at the beginning of February. I've been paying down a lot of cards since then.

The situation in the subject line seems to be a common one for BoA customers, judging by my reading. My BoA Visa had a $10,000 limit from the beginning, the highest limit I've ever been offered on a CC. After several years of perfect payment history with them -- almost always paying more than the minimum -- I got a letter from BoA in February saying that in March my rate would go up to the ridiculously high default rate (32% I believe, but can't confirm from their web site at the moment) because my CR showed delinquencies to other companies. That's simply not true. No late payments to anyone in four years -- the length of time I've had a BoA card!

The rate went up, and I paid the card off (about $8,000) and cut it up. Now I'm wondering if that was the smartest thing to do. I read today that the high balance probably had something to do with their jacking up the rate. They thought I needed it and that I couldn't pay it off. Joke's on them.

But should I call and ask for the rate to be reconsidered? Has this worked for anyone with BoA? I have almost all my cards under 30% UTIL now, and am working on getting them all under control.

Thanks to you all for your valuable advice. What a find this forum is!

Glass Half Full

[Anonymous]

Figure out what happened on your CR and then go for the recon.

I am sure someone else would be happy to have your business.

[Anonymous]

GlassHalfFull wrote:

But should I call and ask for the rate to be reconsidered? Has this worked for anyone with BoA? I have almost all my cards under 30% UTIL now, and am working on getting them all under control.

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BOA and their universal default nonsense is outta control. I would write and asked for recon, as opposed to calling. Just my two cents, but front line phone service folks are likely australopithecines. They read from a script and recon ain't in the script. Takes one of the homo genus creatures, and for that you generally need a letter.

[MercyMe]

Glass ...  good morning!  Take heart, the same happened to me when an old creditor reported incorrect info to the CRAS.  I got a nice (lol) letter from BOA telling me that my interest rate was going up to 25%, and nevermind that I've not paid any of my creditors late in years, and always pay over minimum.  I called the number given in the letter I received and after determining that it was the misinformation in my credit report that caused the rate increase, I explained the reporting error to the Rep and was batched through to a supervisor who then rescinded the 25% and set me at a fixed 17% contingent only upon that I do not default/pay late with BOA, which is a good thing, because previously their percentage increase warning included defaulting on any credit account, not only BOA.  Call them and explain.  Good luck!

[Anonymous]

GlassHalfFull,

I don't know what is going on at BoA as of late, but I have been reading on other credit forums that BoA is sending out rejection letters and raising interest  rates like mad!  I remember Chase doing this in the past also.  Both Chase and BoA are heavy believers in the universal default clause..."We can raise your rates at any time for any reason...." and they do!  You would think after that committee on credit met that things would be working out better for the consumer; not receiving rejection letters!!!  These people say they aren't behind or had a good relationship with BoA.

Was your $8,000 part of a 0% promotion period? 

I have BoA and an $11,100 credit limit and my balance is $6K.  I have through September, 2007 to pay the balance off (atleast I hope I do ).  My instincts tell me to get rid of the balance now  or  to  keep a credit card earmarked for this just in case I receive one of the "Dear John/Sandy" letters. 

My thought is this:  I don't want to be with someone who turns the table on me for doing absolutely nothing wrong.  How can you trust them?  There are too many other banks out there that want your business.   

[Cory]

How do lenders find out your deliquent with another account unless they run your report? or maybe their affiliates are passing around this information.

It still seems to be fishy.

Cory

[Anonymous]

Cory,

I believe creditors monitor your report monthly to find out if you're delinquent with another creditor or if you have any judgments/collections on your credit record. 

SandyK

[Anonymous]

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Cory wrote:

How do lenders find out your deliquent with another account unless they run your report?

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By doing exactly that. Check your reports for soft or hard pulls by your creditors.

[Anonymous]

I've got two cc from BofA @32.24%

[Anonymous]

First of all, thanks to all of you for your advice! I feel like a real novice here, and I appreciate learning from all of you who've been down this road.

I wasn't able to check the BoA site the other night when I wrote the original message, but I've now checked the rate and it's *only* 26.99%. (Ha!) I no longer have the letter that said they were raising the rate, but I recall it said that they were raising it because of something on my credit report.

I can't find an address to write to BoA on their web site, but I'll check these boards after I've finished this message. I'm sure it's somewhere around here.

The $8000 balance was not part of a 0% introductory offer. It was just because I had put some large purchases on the card and was taking my time about paying them off. That new interest rate lit a fire under me!

I'm grateful for the messages that say other banks would want my business. Thank you guys for saying that. It wasn't too long ago that no one wanted my business. I checked my other two scores and found this:
TU: 683
EX: 688
EQ: 683

They all have a couple of baddies on them -- a public record (judgment) from 2001 and a $50 medical bill collection from 2005. Plus some late payments from 2000 and 2002.

I have a follow-up question on the issue of other banks wanting my business. (Oh, I hope that's true!) On the credit card lookup at myfico.com, if I indicate my credit is in the good range, I see many cards with great rates, especially compared to the rates I'm paying right now -- not just to BoA, but on all my cards. Some are Discover cards, which I've read are hard to get. Can I believe the CC list that these banks might accept my application? I don't want to apply and be denied.

In the end, though, I don't *need* credit right now. I just liked having that big BoA card that I could fall back on.

Thanks again to all of you!

GlassHalfFull