It’s said to be the credit card industry’s response to legislation that will restrict credit card issuer’s ability to raise interest rates on existing balances. That legisaltion takes effect in February. In January, Bank of America will begin charging between $29 and $99 a year to customers who pay off their credit card on time each month.
The story is in USA Today. This should encourage everyone to start paying off that debt, cut up your cards.
Not practical, you say? The article also gives some advice for finding a card that won’t nickel and dime you. They say consider applying for a card through a credit union because many credit union cards charge no annual fee and offer below-average interest rates.