Bad Credit Article | MyCreditGroup.Com
Bank of America Thinks Everybody's a Risk
Somebody sent me an email this morning referencing an article they saw in Business Week regarding Bank of America’s recent and random rate increase to its credit card holders. Now, this practice is nothing new, I wrote about it in this post. What is new is that it has apparently happened to people with good payment histories.
So far nobody can really figure out why they did this or what criteria they’re using. I’ll tell you exactly why they do it - but first let’s look at BofA’s comment from spokesperson Betty Riess.
She says the increases come from “periodic review" of their card holder, credit profiles. The difference between this and the universal default is that with universal default, something has to trigger the rate increase such as missing a payment. It appears now BofA is applying the rate increase whenever they “deem somebody a risk”. Gee, I wonder how many people in there opinion will be deemed high risk?
Ok in case you don’t already know this – let me tell you right now.
Everybody benefits from you have bad credit, everybody but you of course. If you have bad credit, lenders have reason to charge you higher rates. Lenders and collectors pay the credit bureaus. Credit bureaus pay well you know where I’m going with this.
BofA’s latest little rate increase in my opinion, is nothing but a fabricated excuse. Deeming somebody high risk is pretty vague. That means if you put even a dollar on your credit card, theoretically, you’re a higher risk.
So what can you do? Well, the sad truth is not much. What you can stop doing is giving them your money. Go to a bank that cares more about its customers and transfer the account out.
Any company who cares more about finding excuses to charge you, then it does finding ways to earn your trust, is a company who doesn’t deserve the business
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