Vision Credit Education, Inc.

In line with other major credit card issuers, Bank of America is raising the interest rate on certain credit card accounts. Such an increase would be based on an individual review of your credit.

This increase is the result of a periodic account review inquiry that is done to evaluate the changes in your perceived risk of default. Account reviews are initiated by your credit card issuers in order to keep track of any changes in your credit or financial situation.

Account reviews can have a positive effect on cardholders. For example, if your credit score has gone up by 40 points, then your credit card issuer may be wiling to increase your credit limit.

Account reviews can also impact you in a difficult way. You could see your interest rates increase or receive notification that your credit limit is being lowered.

Bank of America has been increasing the interest rate on certain card accounts. It is believed that such increases are being made as a result of certain traits identified by Bank of America that could indicate a higher risk of default. Those exact triggers of a higher rate have not been disclosed.

If you are a Bank of America cardholder, there are some steps you can take to potentially avoid such increases in your interest rate. In addition to making sure you make all minimum payments on all card accounts, you may wish to focus on other factors that could indicate financial weakness. These could include:

• Barely paying the minimum payment
• Carrying high debt balances on multiple credit cards
• Approaching the credit limit on one or more credit card
• Using non-traditional lenders that specialize in subprime lending

If any of these risk factors applies to you, it does not mean that Bank of America or any other of your card issuers will raise your interest rates. However, there is an increased likelihood of experiencing rate increases if you exhibit some of these risk factors.

Other changes in Bank of America credit card policies include reducing the initial credit limit on new accounts and closing idle accounts that have zero balances.

If you have already experienced an increase in your interest rate on a Bank of America account, you have probably also noticed an increase in the monthly payment. You do have options to reduce this interest.

First, you may decline the changes and repay your balance while receiving the previous rate. You must generally do this within 30 days and you will lose the ability to use that card account.

If you have a high balance on your Bank of America account and also are having trouble with other credit cards, then you may need more substantial assistance. These are signs that you might need credit counseling. With credit counseling, it may be possible to lower your interest rates and in turn provide for lower payments on your credit cards.