Bank of America Changinge Fixed Rate to Variable Rate!

[cymx5]

Consdering I actually had faith in Bank of America through this whole shinanigan, I am finding their loyalty to customers very disappointing now that it's hit me.

My credit is perfect for a 25 year old. Earlier this year, I got an increase in my credit limit. A month later, they decided to recall that increase and dropped my limit back down (all while my credit score was increasing still). Last month, I get a notice of changes in the bulls*** stuff like cash advances, balance transfers, etc...the rates are going to 24.99% or some s***. No problem, I don't use those things, and my purchases rate is still a fixed 7.9%......WELL, now this week, I get a notice saying that they are going to change everything to variable rate, including my purchases rate.

What assfucks. I need to call considering I'm perfect on every account I have ever opened....ever, but I feel they'll just **** me over anyways. That's the standard in banking these days.

 

[blueprotegelx]

Excuse my foreigness to the credit industry. But what exactly does it mean when you say their going to a variable rate?

 

[mazdaspeedster3]

I would just call them and tell them you will close the account if that is not removed. The credit industry is still very competitive and you can find a better card with a better rate. I think they are trying to get what they can before Obama trys to fix the credit card problem we have in the US.

 

[cymx5]

When you borrow money from a bank (via a credit card, mortgage, vehicle loan, etc.) they charge an interest rate on the amount you borrowed, basically as some way to profit from their service they provide to you. A fixed rate means throughout the time I pay them back, the interest rate stays the same. For a variable rate, the bank will use a rate that 'floats' with the prime rate. The prime rate is basically a fluctuating value based on the credit industry and markets (it's too complicated for me to explain...and for me to explain accurately because I never use variable rate anything). So, for a variable rate, my bank says the interest rate will be "4.50 plus the prime rate", so if the prime rate is 4%, my rate would be 8.5%.

 

[BOOSTR]

Not much you can do as most credit card companies are playing hard ball these days. There is no loyalty or consideration for paying on time every time, carrying no balance or having a good credit score.

What makes it even more sickening to me is that a lot of these credit card companies have their hands out for TARP loans. So we indirectly help them via our tax dollars and they directly **** us by changing the terms on us.

What a system.

 

[MazdaSpeeder]

Sadly, they're all doing this right now. The new credit regulations are about to go into effect, and the result is that they are trying to get everything done that is still legal now. Unfortunately, this new regulation of the credit industry screws us responsible users most.

Credit card companies and banks make their most money off delinquent and poor creditors...they can charge them more fees, raise their rates because they are more of a liability, etc. The way it has been, you are at an advantage if your credit is good and they want you, so the deal is sweetened with fixed low rates, higher cashback percentages and the like. If you're irresponsible, you pay a premium for it.

Now, with severe limits imposed on fees and the ability to raise rates, the banks can't make as much money on delinquent credit users, so the responsible users pay more to compensate for the lost revenue. We're punished now because the government seems to think that it's not fair to charge a higher risk credit user more. Things like low fixed apr and cashback are going to go away, or at lease be much harder to get for even the most responsible people with good credit scores and histories.

Another casualty of an irrational aversion to free markets and capitalism I suppose.

 

[jred321]

i hate bofa too. not for their credit card rates but for the fees they charge for everything. they have the only ATM inside of our company and i think it's $3 to use if you don't have one of their cards. then if you do have one of their cards they charge you fees for everything. never will i open any account with bofa

 

[JDM-P5]

i hate bofa too. not for their credit card rates but for the fees they charge for everything. they have the only ATM inside of our company and i think it's $3 to use if you don't have one of their cards. then if you do have one of their cards they charge you fees for everything. never will i open any account with bofa

I have BOA(M) Military.
I get free everything...they even pay me back if I pull out $ from another ATM.
Thankfully, its not like when I was in Turkey and didn't have any US banks to make deposits & withdrawls from. Now, there's one right around the corner from my house & I did a walk-in deposit (first in well over 2 years!) just the other day and it was in my account immediately...BOA has always been good to me.
(2thumbs)

 

[cymx5]

I have BOA(M) Military.

In this case, you deserve much more payback than free banking and atm's. (2thumbs)

 

[genericuser]

Don't carry a balance on your credit card from month to month. Pay everything off at the end of the month.

Problem solved.

 

[JDM-P5]

^
That maybe why lol...

 

[cymx5]

I don't have any balance. My only open credit lines are student loans and a vehicle loan.

 

[genericuser]

Oh, so the change doesn't really even matter. As long as you continue to pay off charges every month and don't carry a balance, the interest rate is a non-issue.

That's like getting upset about someone charging you per use of a cigarette lighter in a car when you don't smoke.

 

[cymx5]

I'd rather deal with the principle than the practicality of whether it affects me presently or not. Lack of use or paying off at the end of each month is even more reason NOT to change the rates. BofA is wasting their time hiring people to change rates on those who are current on payments.

As of today, it does not matter to me. I keep things in mind for the long term however. For that reason, I don't want to come back to this card 2 or even 10 years from now when I need it and get smacked with 10%+ on a variable rate with great credit!

 

[cymx5]

on a side note, your comments were halarious. I was honestly laughing out loud in my cube at work when i read it!

you did make perfect sense, im just looking at the long term use of it.

 

[MazdaSpeeder]

Oh, so the change doesn't really even matter. As long as you continue to pay off charges every month and don't carry a balance, the interest rate is a non-issue.

That's like getting upset about someone charing you per use of a cigarette lighter in a car when you don't smoke.

But what happens when he needs his credit in an emergency situation and can't pay it all off by the next cycle...it happens. Then he is screwed, despite having a great record with them.

And it's the principle of the thing as much as anything else...now irresponsible people get it easier and the rest of us carry the burden.

 

[1sty]

I though tall credit cards were "variable" as the rate is dictated by the issuing company and can change at any time. Even though they pretend it only changes based on the "prime rate" and our credit.

Also, neither Discover or Chase have raised my rates at all so they are the cards I use. Nor is their rate low considering my credit score is in the highest tier.
HSBC did raise my rate on my Suzuki card 6 months early so I canceled the card. They are a worthless company.

Capitol one has some BS information gather agency / bill collectors calling people and asking for their account numbers and then ask you to have someone you know call them, for me it was my mother in law. So I canceled that card as well as they don't even own up to it. They were calling me 6 time a day and not a damn one spoke English.