BankAmericard Basic Visa – Deal or Clever Marketing?
For years there has been a big backlash lately against the credit card industry for terms and conditions which are just too complicated. But is the new BankAmericard Basic Visa actually a better deal or just clever marketing?
The Basics About “Basic”
Bank of America first launched the Basic card in 2009. The selling point was, well… it’s basic! The terms of the service agreement were touted as being only one page long. It has the same APR for everything – purchases, transfers, and cash advances. This interest rate is a fixed number of percentage points above the prime rate. They say they will never change the rate, even if your credit goes down the drain or there’s late payments.
However when I last reviewed the application in 2012, the TOS were longer than one page for sure. However my guess is the tighter credit card regulation now requires additional disclosures, so can’t fault BofA for it becoming more than one page.
But Look Closer…
Like they say, if it’s too good to be true, it probably is. I applaud B of A for coming out with one card that appears to be more straightforward and transparent to the consumer. But the APR is just way too high to make sense in my opinion.
Sure, it’s a “flat” rate, but that is calculated as the prime rate + 14%. At the time I’m writing this, that equals out to be 17.25%. Now that’s not exactly a APR, but then when you take into account the fact that the prime rate is at historical lows, that means during the “good times” you will probably be looking at something around 20% and up.
Oh yeah and rewards… what are those? Because apparently this credit card doesn’t know anything about them!
The Verdict
If you’re someone that doesn’t have the best credit, are chronically late with making payments, and don’t carry a balance, the BankAmericard Basic Visa might benefit you.
But for anyone that is responsible with their credit and makes payments on time, this probably just isn’t a good choice. You may not carry a balance now, but the bottom line is in the event of an emergency where you have to carry a balance, you don’t want to be held to an APR of 20%. Instead, check out our sponsored listing of the best credit cards which is constantly updated to get a better deal.
By the way, if you’re curious as to why BofA is going by the name BankAmericard on this card, check out Bank of America’s Visa card history for the answer.
Sounds like junk to me.
Very good point – I think as with all “simplified” products, they are geared towards those that don’t have the gumption to sift through the fine print and, thus, probably wouldn’t comparison shop. The spirit of a credit card for dummies is kind of nice, but at the end of the day, you’re right, it is just clever marketing. It’s still a variable interest rate that is definitely going up.
I read the history of Visa but I still don’t understand why they are changing the name of the credit cards to Bank Americard?
I think overall this is a good idea from Bank of America. They saw an issue that arose that
their customers were complaining about, and addressed it. They did that in order to help out
their bottom line of course, but they are in it for the money in case you didn’t notice.
The terms aren’t that great. If you did some digging you could get a better deal, but then
that comes with the fees you gotta watch out for and all the sneaky terms. So for people
that just want a straightforward know what their getting into card, I say its a good fit.
Yep gotta agree that’s way too high on the interest
Did Bank of America discontinue this?