- Did Your Business Credit Card Catch the Fee Virus?
- While you were worrying about your personal credit and personal credit cards, did you notice what was
happening to your business cards?
When the government passed the Consumer Credit Protection law recently it was aimed solely at
consumer personal credit. In fact, any credit card with a limit of over $25,000 was excluded from that
law because it was believed that any card with that high a credit limit was going to be used for business
and not for household or personal expenses. With that description, even if you are using your personal cards for business (which you
should not be doing!!!) they are not going to be protected come next July when the protection goes into effect.
How are credit card companies reacting to the new law? Well, they have actually been reacting for the past year or so by raising
interest rates and adding fees, creative fees I might add; so many fees that it seems like credit cards have caught a 'fee' virus!
How many of you now pay a charge when your debit card is overdrawn? Did you actually sign up for that? I doubt it. Most banks
suddenly added that 'service' for their debit card customers without any notice or chance to opt out. In fact, even if you try to opt out
you may not be able to; this is a very lucrative fee for the bank. Banks are glad to let you overdraw your account by a dollar to charge
you $25 - $35 for the privilege of not getting embarrassed at the check-out counter. As the time for reform draws closer and banks
and credit card companies feel the pinch of the new law, they will be passing that pain on to you, the business card holder, because
you are NOT covered by that law.
How can you protect yourself?
The best way is to read your statement each month and be aware of what fees are being added. Call and ask for an explanation so
you can avoid that action in the future, and then ask for a refund of that fee or, if possible, ask for them to eliminate it from your
account based on your value as a good customer. In these tough economic times everyone is protecting their bottom line by trying to
increase their income. Banks and credit card companies are no exception. Protect all of your cards by keeping an active and
educated eye on every charge. If you are using your personal cards for your business, stop that today. Start to build your business
credit. If you don’t know where to start you can join me on my monthly Business Credit Teleseminar or purchase my Business Credit
Builder Home Study Program to get your business credit started on the right path.
Credit Article by Linda Adams - The Clean Credit Queen
Good Day and Good Credit
- Please go to the Calendar of Events to find out when the next Business Credit Teleseminar will be held.
- Find out more about Business Credit Builder System (Look for the Small Business Credit Solutions section on the product page)
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Linda Adams, The Clean Credit Queen is not a registered investment advisor and the information provided on this website should be considered educational in nature, but it is not a substitute for legal or professional financial advice. If you believe you need the help of a Certified Financial Planner or other investment counselor, please seek a qualified professional. |
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