Weekly News

 

October 24, 2009

10/24/2009 12:00:00 AM

Bank of America now charging annual fee of $29.99-$99.00 for paying your credit card balance off in full each month!

 

Citi Bank now charging annual fee of $29.99-$99.00 for NOT keeping a high enough balance on your account from month to month! 

 

What these two companies are doing is a direct contradiction to how FICO ’08 is determining our creditworthiness.  According to FICO ’08 we need to either keep our balances under 10% of our credit limit or pay them off completely each month to receive the optimal credit score.  However, these two companies will penalize you for doing so!  Worse yet, 15% of your credit score is determined by length of credit history so if you have a credit card with one of these companies and decide to just close them out, you will also lose points on your credit score!


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