Three years ago I opened a credit card account with Bank Of America. My original agreement was an interest rate of 0% for twelve months then after the interest would be 8.9%. Well after just 9 months my interest rate went from 0 to 12.9 %. Then on month 12 Bank of America informed me that FIA Card Services would manage my account and that my interest rate would be raising to 14.9 %. Then on month 15 they raised my interest rate to 17.9 % and then again on month 24 they raise it to my current rate of 18.9 %. Now I received a notice that my annual interest rate will be raising to 27.99% because of info contained in my TransUnion Credit Report, I contacted TransUnion to receive a copy of my credit report to find out exactly what info they are basing this interest rate hike on. I have perfect credit according to my local bank that I have loans with. I have never missed a payment or been late with a payment to Bank OF America. This whole experience with BOA and FIA has been deplorable. I have an account with Discover Card and I have had an excellent experience with them so far. I would not recommend Bank Of America to anyone. Loan Sharks for sure!
Well to bring everyone up to speed on this subject. I managed to get my credit report from Trans Union. They have lowered my credit score by about 40 points from 728 to 688 which effectively gives me a D rating simply because of high balances on the only two credit cards I own. First is the Bank of America card the credit limit is $5500, my balance is $4945 and the second is Discover Card the credit limit is $3000, my balance is $2750. These two card are the only debt that I am carrying now. I don't have a mortgage, car loan, or any delinquencies. All payments to these cards have been made on time or in advance with more than the minimum payment. Hell I've even had the same car insurance for over eight years now. There was a time in the past I would have been considered a model credit customer.
I did notice something peculiar in my credit report where it list companies who request info about your report on a monthly basis. For the last 2 years BOA has check my report each and every month, once they checked it twice in one month. Sounds to me like they were looking for any reason possible to raise my rate. Also from what I've learned, the more companies check your credit report it actually causes your score to lower. Nice game they got going, huh?
I have written BOA/FIA a letter stating that I didn't agree with their rate increase, so if they stay true to the letter that I recieved my rate will not increase but I cannot use my account, for if I do the rate will increase. Believe me I have no plans on ever using that BOA card again, it has been destroyed. And next month I will be closing that account permanently.
As for my Discover Card, this company has been excellent so far. Really professional and they don't have some flunky side business strong arming people like a bunch of Mobb Thugs. I will recommend Discover Card to everyone. Steer clear of BOA it's a horrific company!