Bank of America tops business credit card list

5/5/2011

Entrepreneurs looking to apply for a small business credit card should consider going through Bank of America, as a recent study conducted by Card Hub suggests that the financial institution offers the best protections and issuer transparency.

The CARD Act regulations changed how many credit card issuers dealt with small businesses, making their practices and fees more transparent. Bank of America scored 100 percent on credit card protections and "good" on issuer transparency. The only other company that approached Bank of America was Capital One, which scored 60 percent in the first category and "good" in the second.

"Finally, there are issuers like U.S. Bank and Wells Fargo, which rank the lowest in our study," explains the source. "Not only do they refuse to be upfront about their policies as if prospective customers do not have a right to know what to expect from their products, but there is also no indication that they are doing anything more to protect their business credit card customers than is required by the letter of the law."

Entrepreneurs should leverage business credit cards for smaller purchases while saving bigger ones for commercial loans - this should help them effectively manage their funds.