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Home > So glad that card is almost paid off...

So glad that card is almost paid off...

January 23rd, 2008 at 05:49 pm

My Bank of America credit card is raising its interest rate. My current rate is 10.99, they want to raise it to 20.99 as of the 1st day after the March closing statement. Just like my Capital One when it raised its interest rate, I have the option of rejecting it and being able to pay it off over time.

Obviously, I won't do that since it would have a huge impact on my credit score thanks to losing all that unused credit limit so I am a little peeved.

Thankfully, I will have this card paid off in May at the latest which means they won't get much from me but its still annoying.

I find it to be a strange coincidence that my two oldest credit cards have now both raised their interest rates on me since you aren't supposed to get rid of your oldest credit lines. That's okay, once we have bought our house, they are going bye bye. I have two other cards right now that have much better benefits and are worth keeping.

6 Responses to “So glad that card is almost paid off...”

  1. Maismom Says:
    1201112922

    That's a big increase. Fed just cut the rate, and CC rate is up? Doesn't make sense, but I guess banks are trying to make up their losses by charging more for CC fee.

  2. Caoineag Says:
    1201114600

    Yeah this would be the bank that just posted huge financial losses due to risky mortgages so I think they are trying to boost the bottom line by jumping the rates on their credit cards.

  3. littlemama Says:
    1201120133

    Have you thought about doing a balance trasfer to a lower rate card?

  4. Caoineag Says:
    1201185909

    I have, but not sure that it would be worth it to save 2 month's interest. If I had a 0%apr offer with no balance transfer fee, it would still only save me $40 and currently I don't have one so it would save even less.

    The other issue is that this is my largest line of credit so the debt to limit ratio on any other card would become very bad for a short period of time. Since all debt should be gone as of October, my inertia screams to just pay it off quickly and move on to the next debt.

  5. debtfreeme Says:
    1201194016

    Pull your credit report and see what is there to cause it to go up.

    but if you have been paying off a card and with large amounts, they still want to get yourmoney so they can and will raise your rates. If you pay it off suddenly faster this can happen.

  6. Caoineag Says:
    1201196365

    Nothing wrong with my credit report, this is just them changing the terms on this type of card. That is why I can opt out and they are giving so much lead time. They had warned in November of last year that they were planning changes to this account and my credit score had been a 711 at that time.

    The weird part is that they are claiming that they are only raising my account 4% (old rate was 8.25 + prime, new is 12.25 + prime) but since my current actual number is 10.99 and they said the new rate would produce a 20.99, I am not sure where they are getting their numbers.

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