Business Credit Cards Getting Tough To Get
Filed Under (Credit Cards Blog) by creditblogger on 05-12-2008
In case you haven’t been noticing, the economy is in the dumps, and there is no sign that things are going to get better. There is no questions that consumers are being squeezed by the financial conditions these days, but small businesses have been hurt the most by the credit crunch. Small businesses rely on loans and leverage to run their business, and if you can’t borrow money to run your operations, you have to close doors sooner than later.
But things are going to even get worse for small businesses. Many credit card issuers have reduced credit limits and increased fees on their customers. Now, we are hearing that a few major credit companies are going to modify their applications to ask for more verifiable information that could affect your eligibility for their cards. In essence, if you are a small business owner, you are going to find it difficult to get approved for a business credit card.
Business credit cards have been so valuable to business owners in the past, but with credit companies making it difficult for business owners to get approved for them, you can expect some more businesses to close doors this year or next.
What’s your take: should credit card companies penalize their well-behaved customers to protect themselves in these tough economic conditions?
