Some credit card companies have come up with a new tactic for luring customers into debt. The passage of Card Act has caused companies to disclose fees to credit card customers and cap interest rates being charged to customers. Credit card companies are now happy about the fact that they have to inform customers as to how long it will take to pay off their balances making the minimum payment only. That is why they have come up with a new strategy. What is the new approach?
Business Credit Cards
Companies are now pushing business cards. According to the Wall Street Journal, more than 10 million business cards are mailed to customers every single month. Business credit cards do not have the same protections as consumer credit cards. That means that they are a bigger money maker for companies because there are no consumer protections. Interest rates are not capped and neither are fees on business credit cards.
These cards are being sent to everyday regular people who do not even have businesses. In order to protect yourself, you should skip the business credit card and stick to a regular credit card. An unsecured credit card with a decent interest rate is your best bet because of the low fees. If you have bad credit then you should look into a secured credit card because it will offer you a second chance at rebuilding credit.
It is important that you are aware of all of the latest offerings that card companies have so that you can make sure you have the best credit products and are not paying more than you have to. You may have to repay principal to debts that you occur but you do not have to repay interest. That is why paying off your debts is the most responsible use of credit.
