Crappy BoA

[darktiger]

I am kind of mad that BoA wants to raise my APR from 7.99% to 14.99% just because their management made bad investment mistakes. Guess time to switch over to USAA for better rates.. I think I might cancel my BoA account overall.....

[gardener]

I got a similar letter last week from my credit union issuer only mine went from 9.9% to 14.9%. The gist of the letter insinuated that since I pay my credit card off monthly, they weren't making as much money off of me as they thought they should. They did allow however, that when I used my card, I should think of it as getting a no interest loan for the period between the charge date and the billing date... you betcha.
On the other hand, a lot of people think that BofA sucks to start with...

[darktiger]

I switched over to USAA, got one for 6.9% and 0%interest for my transfer...... I win...Might cancel my BoA banking account....

[Coelus]

I just stopped using credit a couple years ago. The rate hikes didn't effect me at all. FWIW I think it's crap that the rates can change because they feel like it. If you're on time and the prime hasn't gone up there shouldn't be a change.

[darktiger]

I agree. But I have never missed a payment on anything in my life and they want to raise my apr. No problem, they lose since I buy a lot each year. I will just take my business to someone who cares for their customers............USAA rules..

[andyz]

It is the golden rule. He who has the gold, makes the rules.

We paid off a bunch of cards last year. When the credit card lender starts cutting cards, we'll lose those lines. We cancelled some, especially if there were fees. But the lender is there to make money. If you payoff every month and pay no annual fee, they aren't making anything off you and if that is a pattern, they won't be making anything on you. SO they exercise some generally not used rules and ones not intended to be used that way.

Credit card rules will be changing soon. The laws changed that regulate them. So before those changes take affect, they're in a rush to change the terms on the less profitable accounts.

[snidow]

I do not have any credit card by choice and I am even happier now that I don't. Although sometimes I wish I had one, it would make things easier but its nice too not having it hanging over my head.

[L Stegall]

Capital One did the same to me - going from a 4.99% rate to 14.99%. That is one card I can easily live without from now on.

[Cajungaltx]

Here's another vote for USAA.

They opened up their enrollment to anyone who has been honorably separated (used to be that you had to be active duty when you signed up with them).

They have EXCELLENT customer service, and offer the deposit at home feature which is when you scan your checks, nd they electronically deposit them. You have to have a credit account with them (that's how they protect themselves from fraud I'm sure) - but it's COOL as can be.

[andyz]

Personally, I love USAAs Deposit@Home feature. I use it for my son's account. His weekly paycheck goes on my scanner and bam, it's in his account immediately. I've been with USAA for over 30 years. They are great to work with.

[CaptainTom]

Don't think you are "getting back" at the bank by canceling your credit card.
They know exactly what they are doing and are hoping to get rid of the thousands of people who carry their card, but either don't use it, or pay it off every month. Costs them a few pennies for you to have their card so they don't want you to have one any more. They change the terms and you cancel the card. Just what they want.

[darktiger]

Actually I use my card all the time and I carry a balance. So I think I would be a customer they would like to keep. But now I have to find a way to spend 40k worldpoints....

[Bo Morrell]

I thought the bank charged the retailer some type of fee per transaction.

[Florian]

Banks do profit from you using your card, even if you pay it off in full every month. Card issuers charge the vendors card processing fees for every purchase, so even if they can't charge you interest they still get this fee.


Edit: Bo beat me to it.

[groovyone]

Originally Posted by Bo Morrell

I thought the bank charged the retailer some type of fee per transaction.

They do. Last I had talked to someone about it VISA/MC were around 2% and Discover was 3% or more. That was a few years back though. I think AmEx was the highest whichj is why so few retailers took them. Debit transactions were 1%, so if I liked the retailed I used my debit card instead.