September 30, 2009
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News: BofA Launches New CC Program
Earlier this month, JPMorgan Chase & Co launched it new Blueprint program that is aimed at giving credit card customers the capabilities of better managing their monthly bills. The new program allows credit cardholders to determine which bills they would like to pay off faster and eliminate incurring excessive interest charges. Bank of America (BofA) has followed Chase's lead by launching its new program that offers many of the same benefits as Blueprint. The new Bank of America credit card program, Americard, has some back to the basics benefits. The new program offers four different cards. Leading the way is the BofA Americard Basic Visa.
The BofA Americard Basic Visa credit card carries a variable interest rate of 14 percent plus prime interest rate that is claimed to never change over the life of the account. All transactions carry the same interest rate regardless of the classification. This includes purchases, transfers, and cash advances. Additionally, there are no over the limit fees and late fees are a flat rate of $39 no matter what the amount. BofA claims all terms and conditions are written in plain language to provide clarity for most consumers. The other three Americard Visa credit cards offer variable interest rates that range between 10.99 and 19.99 percent and for a limited time a zero percent introductory fee. There is no annual fee and customers have their choice of either rewards or cash rewards. The most basic card with the lowest interest rate has no rewards.
With the implementation of new credit card legislation and outrage over unfair debit card overdraft fees, lenders are developing new products that appear to be fairer. However, as always, consumers should closely examine the terms and conditions to determine exactly what the card could end up costing. It is likely that all lenders will follow Chase and BofA and consumers will see deals getting sweeter and sweeter.