• Jeff Michael: Repair Your Credit and Knock Out Your Debt

    Jeff Michael: Repair Your Credit and Knock Out Your Debt
    I highly recommend this book because I wrote it.

  • Edie Milligan: Tips from the Top: Targeted Advice from America's Top Money Minds

    Edie Milligan: Tips from the Top: Targeted Advice from America's Top Money Minds
    I have about a dozen entries in this book.

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« The guy I want to borrow from | Main | Two-Cycle Billing on the Rise »


We got a lovely letter from them as well. I did not know what to do. Reading your post has convinced me to send a rejection letter. Can they still raise the rates? I am currently making more than the min. payment and have done so for over year. Last month we went through a busy time and missed the payment timing by like a 1/2 hour. So now I have a "mark" on my head. No credit due for trying to make a higher payment each month. If I close the account which we have not charged any purchases on it, will they still jack my rate up?

Jeff, It's good to see that you are still going strong and I think this blog of yours is terrific. Thanks for keeping us all informed.

One of the things I've noticed with some of my financial coaching clients is the resurgence of the two-cycle calculation for interest. This seemed to almost disappear a few years ago with A and B paper lenders but now, even A paper lenders are touting teaser interest rates with the two-cycle billing that, for all practical purposes, doubles the amount of interest paid. They do this to their existing borrower base by offering a more prestigious card--more available credit, "lower APR" but no one is reading the fine print. And they don't realize that they are actually getting a different account which is being offered under different terms.

Thank you for this informative information. Got one. Have a great credit history but I still thought it was personal. MBNA was an awful-wicked company. I closed my account with them years ago, happily, over a small matter but a matter never the less. I have never been late on any cards so this notification will not affect me I do not believe. Still, it is insulting. I guess BofA is adopting MBNAs nasty business habits after all. Oh well, everyone else in California is switching to Washington Mutual. Maybe after 25 plus years with BofA, it's time for me to consider a switch also! Let us know what response you get!

Mary, I'm sure they will raise the APRs, but if you do close the account and make all your payments on time, you probably won't have to pay any extra. Since the newly-raised rates are for the default rate and cash advances, it won't affect us if we have no defaults or tranfers.

I for one am going to make sure I don't have any transactions of any kind with them again.

Joe, thanks for the tip; I'll mention it in a separate post so no one misses it.

Beebee, I like to believe I build a relationship with my bank over time, so it's hard to cancel accounts and start fresh with a new creditor. Unfortunately, BofA doesn't value the customer relationship they have with us, so I think moving on is the right thing to do.

Another creditor I've long supported as fair to consumers is contemplating selling off their credit card business, if they do that, I'll have to cancel my account and recommend against them. I won't name them yet, but if they do go forward with this sale they're considering, I'll be sure to post about them.

Maybe we should write them back and unilateraly change the terms to terms more beneficial to us. We can even give them a provision in mice-type that would let them opt-out of a provision or two --provided they responded in writing by certain date.

Does anyone still have the address to write the letter to refuse the change in terms? I never received the notice of change in terms, but received a follow up as of today. I would still like to try to write a letter to them. Thanks.

With the European leveraged loan market in the midst of repricing, the cost of swapping sterling exposure into euros and dollars may be key for the 9 billion pounds of debt backing the buyout of Alliance Boots , banking sources told Reuters Loan Pricing Corporation.

Help. I have had great credit for 20 years. I have had B of A as my bank accounts too. I have a ton of credit card debt and about $100,000 in B of A credit cards (many of the accounts were originally from MBNA. After being late on one of 10 cards and being up to date on all the others (although close to the available balance) they just closed all my card accounts. My mom's got closed the same day. She always pays more than the min and was up to date but had high balances. Now both of our credits are ruined and my mom never even missed a payment or went over limit. Both our credits are going to be trashed. So question is (a) can they do this, can I fight back (b) I have been looking into a get out of debt program that basically sends a minimum payment with a change of terms agreement back to them and when they cash the check it is now on our terms-could this work? (c) Can they touch funds in my B of A bank accounts.
PS I have another friend with an 820 fico and $20k credit with only a $1k balance and she applied for a $1k B of A card for the airline points and they turned her down saying she would ahve to pay fo the $1k on the other company's card first- have they just gone insane? Are they about to go under?

I'm leaving BofA as fast as possible never to return. I mistakenly have my business account there and $70K on deposit earning essentially zip. I had two credit cards with them only through their M&A activity involving my prior customer-friendly banks.
I had $60K+ lines between them which were arbitrarily cut to my outstanding balances of $20K without being late and a FICO of 720. Because of that, I've lost 50 pts. and long-earned borrowing capacity. They suck!

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