Credit Cards Replace Small Business Loans (Page 2)

kettynjim 12:17:32 AM Oct 12 2008

We have had the same problem as those mention above, the difference is that we have been late by 2 days twice in 11 YEARS and CHASE card is charging us 29% and their reason is because we have to much credit. All perfect but that is the reason they gave us.We have been paying that rate for about 2 years and it is very dificult to pay it off, somhing should be done to stop this banks for abusing the public with their interest charges, specially if we are never late.

prototypeplastic 09:29:27 PM Oct 11 2008

On the positive side, we have used credit cards for years for short periods of poor cash flow in our business. Since deregulation, several CC issuers have changed rates on past purchases; this has led us to stop using business credit cards. We have paid off most, and vowed never to do this in the future. Ultimately this hurts CC issuers, as they look for outrageous fees, penalties and short term gains they sacrifice long term customers. After being tricked once, anyone is business is not going to knowingly sign up for a loan not knowing the future interest rate will be. Changing interest rates on past purchases is unethical, and should be illegal.

prototypeplastic 09:13:23 PM Oct 11 2008

On the positive side we have used creditcards for years as a buffer short periods of poor cash flow. We have been forced to stop this practice as credit card issuers have turned on us by raising rates on past purchases. While they stick us with these short term losses, ultimently, this will hurt the credit card issuers, as business owners in mass are not willing to take a loan without knowing the interest rate. CC issuers have taken advantages of deregulation, and some of these practices are unethical and should be illegal. How would they feel if they lend at 10 % but after spending the money we all agree only to pay back at 2 % interest?

webexperts 08:06:52 AM Oct 11 2008

We started our web site design business 6 years ago using a Bank of America Business VISA with a $6000 credit limit, 20% APR, but 0% APR for first year. We maxed out the card, but paid it off 1 day short of 1 year, thus avoiding interest charges. We then cancelled the card because BofA would not lower its interest rate. We went with American Express, which started us with a $20,000 limit and a fixed rate of 10% and 0% first year. Our credit limit has since raised to $24,000 and AMEX has lowered our interest rate to 8%. We are very happy with AMEX.

nch24 11:52:13 PM Sep 24 2008

Call it "Business" cards if you want But they are really personal credit cardsbecause they all require a personal guaranty. It's total BSIf you think the morgage mess was big JUST WAIT. All the banks are trying to recoup their Billions and Billions in loses by wacking their credit card holders.By charging the most from the weakest they are sowing the seeds of theirown demise. Our government is in the hands of the banks Plain and simple.It cracks me up to see the bloviators in Congress rail against the banksWHEN IT WAS THEIR LACK OF OVERSIGHT that got us into this messHow much money do you think our politicians take from the banking industry???Screw them, We would be a much better off if the hijackers of 911hit a joint session of congress and given us a fresh start.The banks go to the gov't when they blow trillions BUT God help thesmall business owner who gets a month behind in a payment here or there.Galvaston needs just 2 billion to help restore hundreds of thousands of peopleslive

gregbo520 12:32:35 PM Sep 24 2008

I also had an Advanta business card for many years with a rate of 8%. I was current with payments and under limit. Within 2 months my rate increased to 34.9%. I probably received some notification of the change written in incomprehensible legalese requiring me to refuse the terms in writing within 48 hours, but with the volume of junk mail they send me I probably never opened it. With my interest now over 450.00/month I was literally pushed close to bankruptcy. Fortunately I was able to roll the balance on to another card with a 12 month 0% teaser rate. There's no way I can pay it off in 12 months so next year I'll probably be in the same situation again.

sunrisetwl 11:15:36 AM Sep 24 2008

Our federal governments complicity (and some state governments eg; DEL and S DAKOTA) In the allowance of the fraud pepertrated on the average citizen and businessman in this country by the banks issuing credit cards is nothing short of disgusting and criminal. Need I explain the rights of the banks vs the rights of the citizen. Thank you overseers in congress for nothing. But lets make sure we have daytime running lights.

elicruise 10:02:00 AM Sep 24 2008

WAKE UP AMERICA. Just like the financial dictators destroyed you with their mortgage games, the same thing will happen on your credit cards. In fact most credit card issuers are in violation of federal banking laws, our beneficiary judicial system will not rule on many practices. Stop using your credit cards at once. Don't let the banks dangle the carrot when you feel your back is vs the wall. Stop the insanity that is gripping this nation. If you feel you're smart enough to form and run a business, then figure out other ways of making it happen.

wrldimages 07:56:19 AM Sep 24 2008

If the government and the banks want to help the economy, lower those interest rates. At a time when the prime rate is at the lowest, banks should not be charging 28-30% on cards. We too have a start-up. We have a biz card from First Equity that had a $18k credit line. We had 8k on it. Because of a few late payments (we're talking 1-2 DAYS, not a month) they jacked the interest to 30% and lowered limit to 8k. So now the entire payment goes to interest minus about $12, we have no available credit, and on the credit report looks like we maxed out the card when we had used less then 50% intentially.