Hello I'm helping my mom pay off her $45 a month in interest BOA cash advance credit card. My mom's english isn't good and she is ditzy when it comes to finances so 45 in interest has accumulated monthly for the past few years even though she pays above the min fee. I wanted to get a phone number to BOA's relations line because the main one just wants to remove $2 in interest from previous purchases. I just submitted a payment in full but also wanted to know if I should close out the card and how this would affect my mom versus the probably min interest montly charge this crooked bank has? She has been a BOA customer the past 30 years.
What caused the finance charges to increase over time? (other than the APR adjusting to the prime rate). You mentioned this is a pattern that's occured "for the past few years". Did she use the card for standard purchases, cash advances or BTs? Is the entire balance paid off or just the payment for the current statement cycle?
The interest from a cash advance from overdraft protection accumulated. The way BOA likes to be sly is by applying your payment towards purchases first then the cash advance last which has the highest apr. So her 2200.12 balance was racking up approx $45 in interest each month. I paid off the balance. They were nice enough to offer their 30 year customer a refund of interest from the purchases of $2. I was hoping to get a nice BOA associate through the executive customer relations phone number but they closed for business. Is it a good idea to close out the card? how much of an effect will it have on her credit if she's had it for so long? I would guess there is also a min monthly charge for the card even if she doesn't use it?
So, if the account is paid off then it should be a done deal, correct? I would make sure there is no trailing or residual interest from the last payment to make sure there are no surprises. Is this her oldest account? I would assume it has no AF. Of course, if she lets it go for so long, it will eventually close on its own for inacitvity.
However, if the account were to be closed today, then it would not impact her AAoA as it will report to the CRAs for up to ~10 years. But, that's a decision you both need to explore.