All Posts Tagged With: "interest rates"

Even as the prime interest rate tumbles, Business Week reports that Bank of America is jacking up its credit card interest rates. Bank of America recently notified millions of credit card customers that their interest rates would be going up –to as high as 28% – for no apparent reason. If you carry a Bank of America credit card, it might be high time to find a new credit card.

Credit card companies are notorious for finding any excuse to raise customer interest rates – even customers who pay on time, if their overall credit score declines for any reason. But this time, Bank of America doesn’t even have one of those reasons. Apparently they just need the money.

This letter from Bank of America (.pdf) to an anonymous Visa card holder (thankfully not me!) explains how their interest rate is being raised to 28%. Yes, 28%. Continued

Creditors have a secret they will do anything to protect. This secret — kept in Manhattan penthouses by old cigar-smoking white men — makes banks filthy, filthy rich. This secret allows the rich to rob from the poor. Despite its limitless power, the secret is hidden in plain sight. You may know the secret already; though you may not know just how rich it is making your creditors (and how poor it is making you).

It is also easy to forget the secret, or to dismiss it. You may have learned it along time ago, vowed to take action and then, months later, forgotten all about your resolve to stop your creditors from using the secret against you. So what is the secret? Continued

Next time you want to buy something and you can’t pay cash, ask yourself: “Can I pay for this in full within three years?” I call it the three year rule, and if follow it, you will never find yourself overburdened by debt. Continued