Small Biz Credit Card Rates On The Rise
BillShrink finds few businesses carry balances, anyway
The recession has caused many industries to become quite competitive, and it might be natural to assume that the credit card industry would follow that trend. Unfortunately, a study has determined that interest rates on small business credit cards have risen an intimidating amount this year.
BillShrink, a sort of finance-related search engine, said in a statement, “In the run up before the CARD Act, one-third of issuers raised consumer card rates upwards of 20-30%, with an average overall rate increase of 16%.”
Then the report continued, “Since February, consumer card rates have stabilized. However, since the new legislative rules don’t affect credit cards for businesses, many issuers are significantly raising interest rates for SMBs . . .”
So it may be time for small business owners to do a little research regarding interest rates. Or at least annual fees and perks, since BillShrink’s report included the bit of good news that most small businesses pay off their balance every month.
BillShrink said, “According to the BillShrink study, only 27% of SMBs carry a balance on their cards compared to 40% of individuals who don’t pay off their card balance at the end of the month.”
Hopefully that’ll minimize the effect of rising interest rates.