By Jim Donovan: If you have a Bank of America credit card, or know someone who does, please listen up. I have a very important reminder, especially for those of you that don’t read all that fine print on the flyers that come in the mail. If you pay your credit card late, your interest rate could jump considerably. (Please don’t kill the messanger!)
Beginning June 25 Bank of America customers who pay even a single late payment could be hit with a penalty interest rate of a whopping 29.99 percent!
Bank of America says that while a late payment won’t automatically trigger the higher rate, the account will be flagged for review and the rate could be hiked depending on the cardholder’s payment history.
If the rate is hiked, customers will be notified at least 45 days in advance. The penalty rate will only apply to new purchases. A late fee of up to $25 will also be assessed. The fee can go as high as $35 if there’s a second violation in a six month period.
If the rate on an existing balance is hiked, cardholders should know that the original rate must be restored if payments are made on time for six straight months.