Bank of America recently launched the BankAmericard Basic Visa, featuring a single APR of Prime +14% (17.25%) on purchases, balance transfers and cash advances, and no default rate. The card also has no over-limit fee, a flat late fee of $39, no introductory offer, and no universal default.
Given the arrival of new credit card legislation in the coming months, this type of pricing could become the norm in the coming quarters. The card launch also reflects a bank-wide emphasis on clarity. In April 2009, the bank introduced the Clarity Commitment for mortgages, and extended this to home equity loans in November. It also recently launched online advertising, promoting “clear, easy-to-understand products.”
This card is a part of a suite of BankAmericard-branded credit cards, which also include Visa, Cash Rewards Visa Signature and Power Rewards Visa Signature. These cards have an APR range (10.99%-19.99% on Visa, and 12.99%-20.99% on Card Rewards and Power Rewards). And the three cards have a 24.24% rate on cash advances and 27.24% default rate.