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Check Your Notices

This article was written by in Credit. 2 comments.

When a credit card company with which you have a card sends a letter in a thin envelope, it’s best to read it. Likely, the company is notifying you of changes within the terms of the agreement. (The thicker envelopes are usually new card offers and unless it’s a great deal, it’s best to shred that junk mail.) According to an article from The Motley Fool, two credit issues are set to change their terms.

Bank of America and Wachovia (one of my credit card issuers and my checking bank) are raising their minimum monthly payment from 2% to 4% of the balance. People who have budgeted $150 per month for paying off these credit cards will now have to budget $300 per month to avoid fees.

With credit card interest rates as high as they are, it’s best to stay away from carrying a balance. I use my credit card to pay for almost all of my expenses, but I pay the entire balance off every month. On top of that, my card offers a cash-back rebate which is paid to me by check; in fact, I should shortly be receiving a $200 check for purchases over the last nine months or so.

Updated August 19, 2013 and originally published March 30, 2005. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about Luke Landes and follow him on Twitter. View all articles by .

{ 1 comment }

avatar Jason

I find I spend more when I used to put everything on my credit card and pay it off next month. When it’s being pulled from my checking I think a LOT more about my purchase.

I think the raised minimum payment was something that was passed as law or something like that. I’m sure there are a lot of people that really feel the crunch of having to make a larger payment. It may also be putting the crunch of credit card companies that have customers reducing (possibly) their credit card debt due to larger payments.