153.87% APR. Is this for real?

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
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hans809
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153.87% APR. Is this for real?

Postby hans809 » Sat Sep 20, 2008 3:52 am

Hi,

I am hoping someone here can explain this to me. I have a credit card with Bank of America and have a balance on it of around $3,500 from a balance transfer. Three months in a row now it has listed my APR at over 150%. This month it was listed at 153.87%. I took a picture you can see it below.

What is going on here? Is this some kind of error or am I really being charged interest?

Thanks


magyar1045
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Postby magyar1045 » Sat Sep 20, 2008 9:25 am

It's a typing error, decimal point in the wrong place. But with Bof A, THE loanshark of all loansharks, former convicts running the bank you never know.

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Cucumber
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Postby Cucumber » Sat Sep 20, 2008 3:20 pm

Nice photoshop job :D
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hans809
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Postby hans809 » Sun Sep 21, 2008 2:49 am

Hey back again.

No photoshop here I don't even have a clue how to use that. I don't think it's a type since it's showed up more than once. My balance transfer was around $3800 and I made the mistake of accidentally putting a $10 purchase on it shortly after.

Do you think that 153% is because there is a minimal finance charge on that $10 at full interest and that is why?

I know I'm not getting charged for the $3800 at the 0% balance transfer rate but could the finance charges on that $10 come out to be that?

Thanks for your help. The reason I'm asking on here is because it's faster than being on hold with customer service. hehe

JEFF COGA
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Postby JEFF COGA » Tue Sep 30, 2008 7:02 pm

hans809 wrote:Hey back again.

No photoshop here I don't even have a clue how to use that. I don't think it's a type since it's showed up more than once. My balance transfer was around $3800 and I made the mistake of accidentally putting a $10 purchase on it shortly after.

Do you think that 153% is because there is a minimal finance charge on that $10 at full interest and that is why?

I know I'm not getting charged for the $3800 at the 0% balance transfer rate but could the finance charges on that $10 come out to be that?

Thanks for your help. The reason I'm asking on here is because it's faster than being on hold with customer service. hehe


The 153% is not a mistake, its an annaulized interest rate... by law banks are required to convert any transaction fees, finance charge, and etc into an interest rate... in bank terms it is called "effective interest rate"

After you took out the balance transfer you put a $10 charge correct? If so, the $10 is subject to finance charges. BofA will charge $1.50 as a minimum finance charge. For the balance and the finance charge it will come up to roughly 153% (depending on how many days from your statement closing date).


I can give you the formula on how to calculate this BUT it won't do you any good. (trust me)... Just remember the $10 will sit in the category under purchase accumulating interest on top of interest every month until the balance on the 0% is paid off.
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Mogul of Pineapples
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Postby Mogul of Pineapples » Wed Oct 01, 2008 1:45 pm

Good to see you back Jeff I don't think I've seen you on here in a while.

That means the $10 charge ended up costing him $25 over a year, what a deal! This is a perfect example as why one should never make purchases on a card that has a balance transfer on it.
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goober
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Postby goober » Thu Oct 02, 2008 12:16 am

$25 interest on a $10 charge?

that is so wrong!

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The truth!

Postby indianamom » Sat Oct 18, 2008 11:11 pm

I have two Bank of America credit cards and my interest rate feels like it's this high so I can believe it. :(



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