Some Bank Of America Credit Card Rates Increasing: What You Can Do

TAMPA, FL -- Credit card rates are now their highest in 2009 and that is bad news for Bank of America customers who have low interest rates or who have been late with payments.

Almost every time someone pays with plastic, the credit companies are smiling, because they are making big bucks on interest. Bank of America wants even more interest from customers who don't pay on time, as well as some of their best customers, like Dave Owens, who has a low interest rate.

Owens says it is insane for someone like him to be increased. However, Owens is among the millions of Bank of America Credit Card holders who received a letter saying, "The company is changing the rate not only for future purchases, but also for the balance on this card."

Those with a current rate under 10 percent will be increased to as high as 14 percent. Those with higher rates could be paying more than 20 percent.

High interest rates make it hard to pay off the card. That's why some, like Angela Jenkins, are cancelling.

Jenkins says with that her high interest rate the balance never seemed to go down, even though she kept making her payments every month.

While the Bank of America says it is sending out the letters and increasing the rates because it is costing the bank more to do business, many of those who are affected say they don't buy it and don't like it one bit.

Owens says he will freeze the rate, pay off the balance and cancel his card with Bank of America.

If your rate is going up, you can freeze the old rate by calling Bank of America before May 1^st and telling them you don't accept the new rate. To keep the old rate, you have to agree to avoid using the card until you pay off the balance, otherwise the new rate will apply. Once the balance is paid off, if you keep the card, the new rate will kick in.

Or you can be like card holder Ellen Bell. She uses the Bank of America credit card but doesn't worry about the interest rate, because she pays it off every month. That's the most interesting way to beat the high interests the credit card companies charge.