Pew argues SMB credit cards should fall under CARD Act

5/24/2011

With some entrepreneurs finding it difficult to secure the commercial loans they need, many have turned to small business credit cards. However, these cards often come with their own rates, fees and other charges that company owners often feel victimized by.

Pew Health Group is taking a stand against current small business credit card practices, arguing that credit card companies should have to comply with the same CARD Act that governs consumer cards. Because business owners are expected to be more cautious when it comes to signing up for cards, the CARD Act excluded them when it went into effect two years ago.

"Every month more than 10 million business credit card offers are mailed to households at all income levels. The sheer number of offers that are sent to homes all across the nation represents a risk to millions of American families,” said Nick Bourke, director of Pew’s Safe Credit Cards Project.

Business credit cards can be a good source of short-term financing, but entrepreneurs need to be sure to consider all of their lending options before applying for a new card.