Raise your hand if you want to pay an unexpected annual fee? I am not raising my hand either. Select Bank of America cardholders will not have a choice, unless they want to pay off their total balance.
For those Bank of America credit card holders, an annual fee of $59 will be making itself known in May of this year. If you are a Bank of America card holder, after assessing risk associated with your credit history, this could mean you. It is possible that even if you have a balance that is close to you credit limit, you may be in the group receiving a notice about the annual fee. Although Bank of America is not saying exactly who will be included in this group, risk is the key factor for having to pay the fee.
It is clear that there is no link to a particular type of credit card, just how the card has been used. However, if you are being made to pay a 14 percent interest rate, then you are very likely going to have to pay the $59.
New laws and regulations have caused the group that has been deemed risky to be less moneymaking than the ones deemed responsible with their credit cards. Card issuers are losing money on the risky group and now they are making them pay a price for it.
Most people who have large amounts of debt are trying to pay it off as quickly as possible. The big problem of paying the complete balance off so that the fee will not be incurred is that most of us are not able to pay the entire balance at once. Because of this, the fee will have to be endured, causing even more debt owed. Debt consolidation could be a viable option, if this annual fee applies to you and you have multiple debts.