Beware the Small Business or Professional Credit Card

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Recently, you may have been offered a ?small business? or ?professional credit card?. So you don?t really own a business. Does that really matter?

Well probably not if you want the credit card.

But there lies the question. Is this a credit card that you really want?

Credit cards for business are not covered by CARD, the Credit Card Accountability, Responsibility and Disclosure Act of 2009.

That means that the interest rate could be raised anytime without any notice. If you happen to miss a payment you could be slapped silly with huge penalties. Your bill could arrive the day before payment is due and you could have an interest rate increase as early as one or two months after you get the card.

Contrast that with a regular card that is covered by CARD.

On a regular card you bill must be sent to you a minimum of 21 days before payment is due.

If you are late on a payment the fee can be no more than $25.00

There can be no interest rate increase for the first year and you must be given notice of at least 45 days before an interest rate takes effect. Also if you close the account there can be no changes on the interest rate.

A ?professional? or ?Small Business? credit card may sound cool but that is just you ego. These credit cards are really not. You have essentially no protection as a consumer except the promises of the bank?.if you want to trust that go for it.

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