It used to be easy to choose a new business credit card. All you had to do was compare interest rates, the service charge, and the credit limit. Initially there were only a few companies that offered credit cards. It was really quite simple.
Now the sheer volume of competitors within the credit card industry has made it necessary for the financial institutions to be extremely creative when bringing forth new credit card offers. Each new issue is intended to give more value than previous offers and better than any competitor's card. Not only that, they need to back up those products to ensure customer loyalty.
The individual consumers aren't the only one benefiting from this more competitive market. Small businesses and corporations are as well. In fact, businesses may be getting even more value than the individual; however, the offers vary widely.
Businesses are given the same incentives as individual card holders. This includes 0% APR introductory interest rate, balance transfer options, bonus points, travel rewards, and some with no annual fee. In addition, whether a small new company or a large corporation, business credit cards come with unlimited additional cards for employees, offers of discounts for certain types of merchandise, and a quarterly and annual report.
What can you do if your terms are changed? You can either accept or cut the card up and never use it again. If you choose option two, you preserve your current terms, but lose the card.
If you don't read the terms, you can't say you didn't know. The next time you use the card, the purchase is acceptance of the terms. You are blindly agreeing to new terms.
Plus, chances are that the terms will not be changing to benefit you. Last year, credit card issuers collected over $16 billion in penalty fees last year. Seventy percent of those dollars were from late fees. The fees are rising. Most people paid over $34 dollars per incident last year.
Make sure that you understand all of the terms of your credit cards, including what the rates and fees are. And understand that those terms can change at any time. You are taking a huge risk by taking on a debt that is out of your control. Make sure that you know what can happen before you agree to it.
Check your statements to see that you are being charged the correct rates. You can see your rates increase without any default on your part. There are many reasons that card companies will give you for changing your rate.
If you want to insure that you never face that late fee, schedule regular minimum payments. You can always pay more anytime during the month to pay off your balance faster. But by at least having that minimum come out automatically, you are eliminating any missed payments.
If you see that there is trouble in your future, make sure you take action right away. Sitting and waiting can cost you money if new fees kick in on your accounts. Talk to the lender before you have any troubles with your card.