Bank of America Testing Annual Fees on its Credit Cards

As many experts have suggested in the past, it now looks like issuers may be gearing up to connect annual fees with most if not all of their credit card offers. In what now seems like no surprise Bank of America has decided to take the lead and recently announced that these fees will take effect next year. Currently, they are testing annual fees on cards that previously were annual fee free, which is roughly about one percent of their portfolio to see what the feedback will be.

According to Bank of America these annual fees with be associated with a limited number of its credit cards consumers and range between twenty nine and ninety nine dollars. Also a representative stated that the accounts that will be charged annual fees will be based on "risk and profitability". In short, those cardholders that generally pay off their cards in full each month and always pay on time will probably be those to receive an annual fee.

This notice of annual fees comes at a time when they vowed to stop increasing interest rates until next year. For those that do not carry a balance, an increase in their interest rate was not a big deal, but now that these same cardholders will be paying just to have the card in their wallet, I see many cardholders going elsewhere.