Just like tens of thousands of other Bank of America credit card holders, it looks like my rate is being unduly adjusted. Earlier this month I received a notice from Bank of America suggesting the following:
As a result of a change in our business practices, your Annual Percentage Rate(s) will use a variable rate formula based on the U.S. Prime Rate. If the Prime Rate changes, your APR(s) will vary accordingly.
In other words, my reward for being an excellent credit card borrower with an excellent repayment history and a credit score either at or a few points shy of 800 is to have my fixed rate changed to an adjustable rate. Once I received this notice, I immediately began searching for a new credit card. But while I did find some great choices for a new credit card, I’m going to hold on to this one for the time being. Here are my two justifications.
First, I have a large amount of “reward” points built up on this card. In the past year and a half, I’ve charged about $20,000 on this card and repaid it all within 30 days of using the charge card. That’s pretty damn impressive given some of the consumers in this economy. I don’t want to give up the 20,000 or so reward points that I have so far when I can cash them in for everything from cash to magazine subscriptions to small electronics.
Second, I always pay back my charges within 30 days of making them. Since I don’t really carry a charge as a balance beyond 30 days, I don’t pay finance charges.
Those two points aside, I will probably wind up switching my credit card company in the coming year. My thought process is that as an excellent borrower, I deserve more than this from Bank of America. If they want to treat their best borrowers with such disregard, then I reserve the right to find a new company that will treat me with the respect that my credit history and credit rating deserve.
Since you’re a good borrower, paying your balance in full every month(as long as you adhere to it), it matters not the high the interest rate.
You’d do better by selecting a credit card with exceptional rewards program with no annual fee.
If you’d like to carry more than a card, maybe a low interest rate is a good option. If you plan to carry balances, then a low interest credit card is crucial.