You may have already been notified of a change in your credit line or interest rate from your credit card company. If so, you are not alone. It’s happening to many small business owners regardless of payment history or longevity of service. As the banks and credit card companies panic over the economy (and get bailouts too!), you are the one who will be feeling the heat.
What can you do?
- Make sure you check your credit card statements carefully. Take a look at your interest rate and make sure it hasn’t changed without your knowledge. Credit card companies claim they mail notifications when they change your rate, but that may not always be the case.
- Shop around. It may take you a while, but if you have good credit you’re likely to find a better deal somewhere else.
- Check your FICO score to ensure your personal credit isn’t impacting your ability to obtain business credit. Take action to get your score in shape.
Relief is on the way, but it won’t happen anytime soon. The Federal Reserve Board has introduced new regulations for the credit card industry that will take affect on July 1, 2010. Congress has a couple of bills in progress that will put a stop to some of the credit card tactics, but these are currently pending and won’t be acted on until next year.
What about you? Are you struggling with credit card issues? Tell me about it by leaving a comment.