Watch out for increasing bank fees
If you still have a credit card account, keep a close eye on your mail box, because banks are changing fees again. Notices started hitting local mail boxes this month.
Bank of America calls the notices part of its commitment to clear and timely information. Effective June 1, the finance charges, called "transaction fees," are going up from the current 3 percent to 4 percent.
The increase applies to balance transfers, wire transfer purchases and virtually all cash advances, including ATM advances, check cash advances and advances from direct deposit.
It's the latest in a series of increases as credit card companies look for ways to reduce their losses and make more money.
And many consumers will feel the effect even if they never transfer balances or get an advance.
Bank of America is also changing its definition of "foreign transactions." Right now, if you use your card to shop in a foreign country, Bank of America charges a foreign transaction fee of 3 percent.
Starting June 1, a foreign transaction will include all transactions made or processed outside of the United States. That means shopping online here in Washington will cost you an additional 3 percent of your purchase if that online merchant is in another country.
Other card companies are also reportedly planning to raise their balance transfer fees. So before you switch credit cards- confirm your credit limit on the new card, and verify the balance transfer charges.
With these new fees, changing cards may not be as good an idea as you think. And again, watch those foreign transaction fees because that's a trend as well.
On a positive note, Bank of America just backed off on plans to raise overdraft charges. The bank was going to boost overdraft fees from $35 to $39 a pop, but rescinded that change this week.
Bank of America calls the notices part of its commitment to clear and timely information. Effective June 1, the finance charges, called "transaction fees," are going up from the current 3 percent to 4 percent.
The increase applies to balance transfers, wire transfer purchases and virtually all cash advances, including ATM advances, check cash advances and advances from direct deposit.
It's the latest in a series of increases as credit card companies look for ways to reduce their losses and make more money.
And many consumers will feel the effect even if they never transfer balances or get an advance.
Bank of America is also changing its definition of "foreign transactions." Right now, if you use your card to shop in a foreign country, Bank of America charges a foreign transaction fee of 3 percent.
Starting June 1, a foreign transaction will include all transactions made or processed outside of the United States. That means shopping online here in Washington will cost you an additional 3 percent of your purchase if that online merchant is in another country.
Other card companies are also reportedly planning to raise their balance transfer fees. So before you switch credit cards- confirm your credit limit on the new card, and verify the balance transfer charges.
With these new fees, changing cards may not be as good an idea as you think. And again, watch those foreign transaction fees because that's a trend as well.
On a positive note, Bank of America just backed off on plans to raise overdraft charges. The bank was going to boost overdraft fees from $35 to $39 a pop, but rescinded that change this week.