Credit Cards

Credit Cards was Originally Posted on June 21, 2011 by lavarock

While listening to Clark Howard (ClarkHoward.Com) today, Clark mentioned business credit cards and why the general population are receiving them in the mail.

Recently, Congress issued new rules to control the massive problems with “mega banks” and their credit cards. The banks would offer teaser rates, then change the rates. They would apply payments to your account in ways that would cause more overcharges, thus increasing their profits. They would tell you that the payment due date was a day they were not open, thus you become latem automatically. They mailed statements late so that you had less time to pay.

Well, when Congress created the new rules, they listened to the foxes and held off making the regulations instantly applicable. Thus credit card providers (and providers of gift cards) ample time to change rates and restrictions that would then be grandfathered in.

Congress missed including business credit cards in their regulations, so the banks are pushing those cards which have less restrictions placed on them. You must also be careful even if you have a business, because Clark said that if the business fails, the card providers will come after the company AND you as the cardholder.

You should investigate business cards carefully.