Credit Card Applications Offers are Piling Up - Other News

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Credit Card Applications » News » Other » Credit Card Applications Offers are Piling Up

Credit Card Applications Offers are Piling Up

Credit Card Applications Offers are Piling Up

Lack of Coverage

The primary problem is that cardholders of these professional cards do not receive the same type of protection and coverage as consumer credit cards under theCredit Card Accountability and Responsibility and Disclosure Act of 2009.

Some of the protections these cards do not include are:

  • Interest rate increases
  • Shortened payment cycles
  • Inactivity fees

Taking Advantage

It appears as if business card issuers are taking advantage of the fact that consumers do not understand that the act protections do not extend to business credit cards. And, credit card issuers are taking advantage of this by inundating mailboxes with these offers. During the first quarter of 2010, 47 million professional credit card offers went out in the mail. According to the research firm Synovate, this is a 256% increase over the same type of offers that went out in 2009.

What to Do

It does not mean that you should not apply for one of these cards for your business. It simply means that you should be fully aware of the terms and conditions of the card before taking it on. This, of course, is true of any type of credit card or credit account that you open — be it personal or professional. It is also important that you understand that what you sign on for the business card may change over time, which are some of the restrictions that consumer credit cardholders do not necessarily have to worry about.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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