Credit Card Interest Question - Bank of America

[west]

Quick question for the board.  I pay off the ending balance of my credit cards every month.  Two months ago (or I guess I should say two billing periods ago) paid off everything except for $479.82 on my Bank of America credit card.

 

It ends up, at the end of next period I got assessed interest on not just the $479.82, but all new purchases during the period as well.  It wasn't a lot of money, but it still surprised me that my credit card worked this way.

 

I talked to two different customer service reps and talked with a manager, and, yes, they say this is the way my credit card works.

 

Is this typical for all credit cards?  Or is this just a BofA scumbag-ery thing?

 

Thanks in advance.

 

[fareastwarriors]

Did you ask to get it waived as a courtesy?

[west]

Did you ask to get it waived as a courtesy?

 

I didn't, although it wasn't that much money.  I might contact them again and try to do that.

 

I was really more just surprised by the way the interest charge works.  I thought with most credit cards the interest only gets charged to any revolving balance, not any new purchases during the period.  To less financially savvy people who carry any balance, even a dollar, the way this works could cost them a lot of money.

 

[ERICOPOLY]

I believe Bank of America has an official complaint center to handle these kinds of customer focused issues:

 

Office of the Associate Attorney General

(202) 514-9500

 

ask for Tony West

[Greg]

The guy who thought up that way of calculating credit card interest deserves a $50,000,000 bonus (or maybe a public hanging).

[Parsad]

Quick question for the board.  I pay off the ending balance of my credit cards every month.  Two months ago (or I guess I should say two billing periods ago) paid off everything except for $479.82 on my Bank of America credit card.

 

It ends up, at the end of next period I got assessed interest on not just the $479.82, but all new purchases during the period as well.  It wasn't a lot of money, but it still surprised me that my credit card worked this way.

 

I talked to two different customer service reps and talked with a manager, and, yes, they say this is the way my credit card works.

 

Is this typical for all credit cards?  Or is this just a BofA scumbag-ery thing?

 

Thanks in advance.

 

Yes, generally most credit cards will charge interest on the new purchases as well...essentially, you are still using their line of credit...whereas if you had paid the entire balance, then you have the 26-day (or whatever) grace period where interest is not charged. 

 

Always pay the entire balance if you can...I like banks, but I've always thought their credit card business was pretty scummy in general!  I never pay a cent of interest to them and I plan on never paying another cent of interest for the rest of my life!  Cheers!

[west]

Thanks Parsad.  I guess you learn something new every day (sometimes the hard way!) :D

[Mephistopheles]

I believe Bank of America has an official complaint center to handle these kinds of customer focused issues:

 

Office of the Associate Attorney General

(202) 514-9500

 

ask for Tony West

 

Hahahaha

 

Perhaps I should sell my shares, I can see another $17 billion settlement coming.

 

Hopefully relief for CC borrowers is a large portion.