Although low rate convenience checks and intro offers from Bank of America may seem very tempting when it comes to financing part of your wedding expenses, you may be wise to totally avoid Bank of America and look elsewhere for financing alternatives.

Recently, there have been many reports that Bank of America has unexpectedly increased interest rates (many times more than doubled and up to 28%) and significantly reduced credit limits apparently without any valid reason.  These are not isolated incidents.  The growing problem is widespread and is damaging more consumers each day.

This type of action can be devastating to your credit score and your ability to obtain affordable financing.   In fact, numerous publications are bringing attention to  Bank of America's questionable actions. Business Week recently brought attention to the problem in an article entitled "A Credit Card You Want To Toss" and MSN Money Central also published an article entitled "Bank of America blindsiding cardholders".   If you value your credit rating, this is not a situation to ignore.

It is estimated that 1 in 5 credit cards used are now controlled by Bank of America and since Bank of America began acquiring other major banks which also issue credit cards it is not uncommon for consumers to now have more than one Bank of America Credit Card.  This becomes very problematic when Bank of America feels the need to compensate for losses they have incurred in another financial market (sub prime mortgages) or when they need to raise cash.  It is estimated that over 40 million credit card accounts are controlled by Bank of America which gives them a ton of leverage because they are able to dramatically change your credit terms, increase your interest rate and reduce your credit limit at-will and without reason or justification.  Unfortunately, any of these changes will likely have a negative impact on your finances and your financial future.

There are many instances reported where, once a balance is carried on a Bank of America account,  the available credit limit above the balance has been all but wiped out by an "adjustment" by Bank of America.  Although interest or credit limit adjustments could be expected if a credit score changed significantly, we are not referencing situations of problem credit or declining credit scores.  We are talking about people who have never had a late payment and who maintained mid 700 credit scores.

As just one example, a 52% usage of available credit (the customer had taken advantage of Prime Rate for the life of the balance transfer offers) suddenly became a 93% usage of available credit after the credit limit was reduced by Bank of America. Although there was no credit problem previously, after Bank of America reduced their credit limit it appeared that they do have major credit problems and have used - or abused all of their available credit.

That drastic reduction in available credit will make it appear that the consumer has maxed out their credit cards and is a credit risk.  It will negatively affect their credit profile, their credit score, and will ultimately hinder their ability to obtain financing -  or at least financing at a fair interest rate.  With the mortgage and finance industry now being overly cautious, this type of unscrupulous activity by Bank of America could be financially disastrous to anyone who is planning to finance a home or other major purchase because this type of action could impact a credit profile and credit score for years to come - which could cost an individual thousands of dollars extra each year due to increased interest rates.

 NOTE: A damaged credit score will also likely increase insurance premiums since many insurance companies now use credit scores when determining risk.  Employers and apartment rental companies also check credit scores it will also likely have a negative affect those areas of their lives as well.

Unfortunately, Bank of America's sheer size and their ability to unfairly manipulate factors that are used to determine credit risk puts everyone at risk who has any type of financing through them.

In other instances, consumers have seen their interest rates suddenly more than double (up to 28% was reported) - even though they had never missed a payment and maintained credit scores in the mid 700s.  Unfortunately, you probably have few options when your interest rate has been increased.  You can either accept the terms and pay the ridiculously higher interest rates, try to move your balance to another card or credit line,  or cancel your card and pay off the balance at the previously established rate.  Unfortunately, none of the few available options will help your finances or your credit score.

Although low rate convenience checks and intro offers from Bank of America may seem very tempting when it comes to financing part of your wedding expenses, you would be wise to avoid financing anything with Bank of America.  Considering the apparent predatory nature of Bank of America's actions, if you currently carry a balance on one of their credit cards, it would also probably be wise to move that balance elsewhere before Bank of America puts you in a position that could be damaging to you for years to come.