Consumer Adviser Clark Howard has a warning about a boom in a special kind of credit card offer.
The offer is for a professional, or business credit card. Banks have cranked up the offers for these types of cards. There’s been a 256 percent increase in the first quarter of this year alone.
Peggy Bethune's mom got one of these offers.
“An 87-year-old woman, who is retired, basically, never really worked, she was a housewife. Why would she be getting a business credit card offer in the mail?” Bethune said.
Clark Howard said there's a reason banks want to sign people up for a business or professional card: The cards aren’t covered under the new Credit Card Accountability, Responsibility and Disclosure Act. With this type of card, the bank can reduce the number of days you have to pay your bill, raise interest rates, charge massive fees and change terms and conditions without notice.
Clark’s advice: If you get a business offer in the mail, shred it. Even if you have a business, you are much better off using a personal card for personal businesses. That way, you are protected under the CARD Act.
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