Bank Of America Balance Transfer Fee

Author: archive
Joined: 23 Jul 2004
Posts: 5007
Posted: Thu Jan 13, 2005 3:56 pm
Post subject: Bank of America/Balance Transfer Fees

John Eally
Date: 5/3/2000 6:19 pm CDT

I applaud your efforts to inform the public about credit card debt and how to work to become credit card debt free. My wife and I have been working for the past two years to reduce a credit card debt and figure we have another year to go to reach our goal. My first question is reagrding the new tactic of banks in charging a balance transfer fee of $3% up front. Is this legal? The offers I have read don't include this money in their advertized percentage rates, however, it makes a huge difference in the actual percentage rate paid over the life of the payback period. My second question is why don't banks offer lower rates to those customers who have been conscientious about reducing their debt. I have been a Bank of America customer for the past several years. About a year ago I requested a lower interest rate and was granted a 6.9% APR (from a 12.5% previously). When I called to request an extension of the lower rate I was informed that they are no longer offering a reduced rate and that I would now be paying a rate of 6.8% above the prime rate. This I feel is excessive. Now I read in your web site that Bank of America is offering a long-term rate of 8.9%. Why don't they provide this offer to existing customers? While I feel it is still too high, It is better than the rate they offered me. I am still trying to find the best way to pay off my remaining debt at the lowest possible interest rate. Any suggestions?

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Author: archive
Joined: 23 Jul 2004
Posts: 5007
Posted: Thu Jan 13, 2005 3:56 pm

Board Monitor
Date: 5/3/2000 6:30 pm CDT

John,

Thanks for your post. While some cards do charge a transfer fee, the cards featured on our "Balance Transfer" page do not charge any fees with one exception - the AT&T Universal Card, which charges a max. fee of $25.

As for Bank of America...have you asked to transfer your account to the "8.9% Forever Card"? If they will not do so, try speaking to manager and, as a final resort, threaten to close your account and transfer the balance elsewhere. Generally speaking...credit card issuers will do their best to keep good customers.

Hope this helps and good luck!

Regards,
Jackie Hughes
Board Monitor
CardRatings.org

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