Bank of America announced a few weeks ago that they would adhere to the credit card rules prior to those rules going into effect in February. Thus, they will not change rates on anyone nor will they utilize deceptive practices.

They recently came out with a new card called the BankAmericard Basic Visa card. The whole idea is to give consumers a simple card with one rate for everyone. They claim that their rate is a competitive rate. They market that the terms and conditions are so simple that they fit on one page. Their marketing states “Know your rate will not increase unless the Prime Rate increases.”

So, why do they have this wording in their fine print?

Account and Agreement terms are not guaranteed for any period of time; all terms, including the APRs and fees, may change in accordance with the Agreement and applicable law. We may change them based on information in your credit report, market conditions, business strategies, or for any reason.

So much for the claim that the only time your fees will go up is if the variable rate changes and…if they decide to change them.

My favorite part about this card is the “competitive” interest rates. The average variable rate right now is 13.4%. Their variable rate is 14% plus the prime rate which puts the rate between 17 and 18%. That doesn’t seem very competitive to me. This would be especially bad for someone with good credit. The worst of this variable rate being so high is the fact that the prime rate is at historic lows and with the only direction that it can go being up. That means that competitive rate could be over 20% before you know it.

Be aware of the new cards and the banks wanting to give you a good deal. There are no good deals in the world of credit…only smoke and mirrors marketing.

Tags: Bank of America, BankAmericard Basic Visa card, Bob Brooks, Credit CARD act, interest rate