According to a new study released by BillShrink, a personalized search engine company, business credit card owners are suffering from interest rates at 30 percent or higher because the Credit Card Accountability, Responsibility and Disclosure Act left this sector of the industry untouched.
Interest rates for business cards began to rise at the beginning of the year, analysts say. Cardholders have been subjected to unfair billing and rate hikes that many consumers have been protected against under the CARD Act. Overall, the average interest rate on business credit cards has increased nearly 16 percent. According to BillShrink, the average business debt is currently $12,1000, while the average individual only has $7,020.
“We predicted earlier this year that small businesses would be subject to rate increases as the banks try to make up for lost consumer revenue resulting from the CARD Act,” said Schwark Satyavolu, CEO of BillShrink. “Since small businesses aren’t protected, they appear to be an easier target for card rate hikes.”
Entrepreneurs considering signing up for business credit cards are encouraged to read all terms and conditions prior to applying. The fine print typically includes important information on rates and fees that may be assessed during the membership.