Bank of America has introduced a new loan program which is also known as Clean Sweep line of Credit. The loan is offered to those individuals who require debt consolidation. The term and conditions allied to this loan are making it very complicated. If you study these more deeply, you will feel like that Bank of America actually never wants you to make complete payment of this loan!
Variable Interest Rate
The Clean Sweep line of credit can be availed at changeable rate of interest which is not a modest one. Depending upon your credit, the rate of interest can reach up to 25.94%. Is not it too high? Hence, if you feel more worried to get rid of your debt and want to manage it efficiently, the more will be the increase in rate of interest.
Besides enormous interest rate, Bank of America requires you to make a payment of three percent as transaction fee whenever you require an advance. To make it more complicated, whenever you ask for advance, the bank start over your payment time period. This time period can be extended up to 72 months. This is not a small period; six precious years of your life time. We will also have a look at, how MBNA (Maryland Bank, N.A) or Bank of America will accumulate your charges.
Advertisement by MBNA and Bank of America
MBNA and Bank of America have been merged. They make promotion of their debt consolidation loan in a lucrative way: You have an opportunity to take a loan up to an amount of US$25,000 to assist you in making payment of your high interest loans. The rate of interest is within your range, as it is only 9.49% with variable Annual Percentage Rate. This has already been discussed above that depending upon your credit; you may have to pay interest rate up to 25%.
No guarantee is required for this loan. You don’t have to pay any extra amount for making your payments in advance. There are no yearly charges. You will get the approval within a very short time; just after fifteen minutes of your application submission. The additional advantage of this loan is that you can assemble a re-accessible cash reserve, because you make deposit for the balance.
Read Before Signing the Loan Document
A large number of individuals do not go through the loan papers prior to signing it. You must therefore, read it now. MBNA will once again compute your Annual Percentage Rate (APR) with the addition of a margin to the U.S. uppermost major rate to be printed in the Wall Street Journal on the last publication day of every month. This is the whole mechanism of mounting rate of interest from 9.49% to 25.49%. The bank also has authority to regulate your APR every month owing to alterations in the prime rate. It is also in their jurisdiction to alter your charges or credit terms.
The repayment terms and payment terms advertised by the bank are mere approximations which may also alter with the changes in Annual Percentage Rate. If you make a delayed payment or make payment of incomplete amount, your charges will be computed again. For a trivial amount of US$5, the transaction charges are three percent, and there is no highest boundary. The transaction charges are further included in your debt amount. You also have to pay interest rate and financial charges on that amount. They may charge any other fees without prior information.
Even, the customers who have availed this loan now regret their decision. This program will rather put you more deep in your financial problems. Even there have been no good reviews for the customer service.