Bank Of America Credit Card Services Internet

My wife and I have a perfect credit history. No late pays, ever. Absolutely NO derogatory information, nothing.

I restore classic cars for a hobby. I will run up the credit cards during the restoration process, then pay them off when the car is sold. My wife's cards - Chase and GM Card, recently jacked their rates up to the max. We called, and they tried to feed us the same crap that Stiles is saying. They claimed that because we were near their limit, that we posed a 'risk'. Really? What they don't do is look at the whole picture, like how these cards get paid off every 6 months. They claimed that out debt-to-income ratio was low. Really... How do they know how much we make? My salary and other income was 6 figures. When I asked them what my salary was, they had no idea. So, why the comment that we don't make enough money to pay our debts?

The federal government needs to step in and stop this maddness. Being a risk has absolutely nothing to do with this. Making a profit at the expense of others does.

Let's say a person has a credit card with a $10,000 limit at 5%, and they've used $9500. Payments are $75.00 per month, and $57.00 of that goes to principal every month. Then they get notice that because the balance is so high, they are raising the interest to 30%. Now the payments are $260 per month, which $37.00 of that gets applied to the principal every month.

In a lot cases, the person wouldn't be able to afford that payment, and will stop paying on the card. So, how does that help the CC company? Now, they have to spend thousands trying to recoup their lousy $9500. If they had left it alone, there's a very high possibility that it would've continued to be paid as agreed.

What the CC companies are counting on is that you will continue paying no matter what. But I have a news flash. I wont be paying them no matter what. I refuse to be loan-sharked by these a-holes. It's pure greed. This is why the economy is in the toilet. Greedy mortgage companies, greedy credit card companies, and greedy banks, doing everything in their power to line their pockets at the expense of their customers. If they didn't jack up interest rates, to well above the median level, people wouldn't be losing their homes, filing bankruptcy and defaulting on their obligations. Most of these people are responsible citizens, but are being

It's called Risk Based Pricing. Essentially, based on your credit profile the bank (and not just BofA, but most banks) decide what level of service to extend to you. Now, we're all used to the idea of getting high credit limits with low interest rates if you're a low risk customer, and getting low credit limits with high interest rates if you're a high risk customer, but banks have started to apply this methodology to the medium risk segment of their customer base.

So, you probably have a mid range credit score, with a mid range debt to credit limit ratio, and you're probably gradually paying down your balances. The bank makes some money off of your interest rate, but isn't making money from you making regular transactions on the card, and if you have high balances elsewhere then there is the risk of default. So, they raise your rate to increase their profit if you choose to continue gradually making payments. If you choose to pay down the balance, then they lower your limit to lower the risk of you running up the balance to a high level again. It's a win win for the bank because they either earn greater interest for the possible risk of you defaulting on your account, or they earn less but reduce their risk.