Can't believe I didn't hear about this sooner. Bank of America has announced it will be charging increased annual fees to credit card customers who pay off their balances each month. I hear that credit card companies call us smart, fiscally-savvy people who don't carry a credit card balance each month deadbeats.
Here's a chilling paragraph from Forbes
The Bank of America accounts that will be charged fees were selected based on "risk and profitability," Riess said. That means customers in good standing who never carried a balance - and never incurred interest charges or late fees - could be among those getting notices.
We happened to recently get a B of A-issued credit card recently. We signed up for it for its excellent frequent flyer mile program and $50 companion airline ticket offer, but we may have to cash out quickly! And, no doubt, this will not be limited to BofA exclusively. It's just a sign of the times.
Apparently this is all on the heels of the Credit Card Act of 2009, a House of Representatives bill that is sending all the credit card companies scrambling to write in outrageous terms in the name of future profitability. Essentially, you are charged hefty fees for not keeping a balance, and you are charged hefty fees for keeping a balance.
I had always been a proponent of responsible credit card use, when it was financially to my advantage to do so (i.e., paying off the monthly balance, not paying an annual fee.) I may have to reconsider that position.