© Grant Wickes
When starting a small business, no matter how big or small the idea is, having the credit card can be a good decision to make. Taking time to decide on what type of credit card will work with you best takes a lot of time. Thankfully, there are many websites and services that can help you compare credit cards that are available.
A credit card comparison of business and personal cards will reveal that most of the top small business credit card issuers are still able to subject their customers to rate hikes on existing balances, double-cycle billing and other practices that were specifically banned from personal credit card agreements under a US reform law.
Only Bank of America gives small business cardholders the same protections that are now required for consumer cards under the CARD Act. It is surprising that even though most small business credit cards are personally guaranteed and thus affect borrowers' personal credit scores, the law does not apply to these business credit cards.
In this way, small business owners are getting the worst deal, because they're fully liable and fully unprotected by the law. A report last year by the Federal Reserve Board recommended against giving small business cards the same protections as personal cards due to fears of increased costs and reduced credit availability for small businesses.
