Thread: 153.87% APR. Is this for real?

Hi,

I am hoping someone here can explain this to me. I have a credit card with Bank of America and have a balance on it of around $3,500 from a balance transfer. Three months in a row now it has listed my APR at over 150%. This month it was listed at 153.87%. I took a picture you can see it below.

What is going on here? Is this some kind of error or am I really being charged interest?

Thanks

It's a typing error, decimal point in the wrong place. But with Bof A, THE loanshark of all loansharks, former convicts running the bank you never know.

Nice photoshop job

Hey back again.

No photoshop here I don't even have a clue how to use that. I don't think it's a type since it's showed up more than once. My balance transfer was around $3800 and I made the mistake of accidentally putting a $10 purchase on it shortly after.

Do you think that 153% is because there is a minimal finance charge on that $10 at full interest and that is why?

I know I'm not getting charged for the $3800 at the 0% balance transfer rate but could the finance charges on that $10 come out to be that?

Thanks for your help. The reason I'm asking on here is because it's faster than being on hold with customer service. hehe

Originally Posted by hans809

Hey back again.

No photoshop here I don't even have a clue how to use that. I don't think it's a type since it's showed up more than once. My balance transfer was around $3800 and I made the mistake of accidentally putting a $10 purchase on it shortly after.

Do you think that 153% is because there is a minimal finance charge on that $10 at full interest and that is why?

I know I'm not getting charged for the $3800 at the 0% balance transfer rate but could the finance charges on that $10 come out to be that?

Thanks for your help. The reason I'm asking on here is because it's faster than being on hold with customer service. hehe

The 153% is not a mistake, its an annaulized interest rate... by law banks are required to convert any transaction fees, finance charge, and etc into an interest rate... in bank terms it is called "effective interest rate"

After you took out the balance transfer you put a $10 charge correct? If so, the $10 is subject to finance charges. BofA will charge $1.50 as a minimum finance charge. For the balance and the finance charge it will come up to roughly 153% (depending on how many days from your statement closing date).


I can give you the formula on how to calculate this BUT it won't do you any good. (trust me)... Just remember the $10 will sit in the category under purchase accumulating interest on top of interest every month until the balance on the 0% is paid off.

$25 interest on a $10 charge?

that is so wrong!

I have two Bank of America credit cards and my interest rate feels like it's this high so I can believe it.