Finance: Credit Card Reform & Small Biz

What affect will the new Credit Card Reform Act have on small business owners?

When the new Credit Card Reform Act was first unveiled, many consumers breathed a sigh of relief…and most small business owners were feeling left out in the cold.  How the new credit card legislation will affect you depends on two things: 1) what type of card you have and 2) how your small business is incorporated.

Because the new laws alter the Truth in Lending Act (which solely governs consumer loans) they aren’t applicable to corporate cards.  For example, if you go out and purchase office supplies on your personal credit card, you’ll be covered by the new laws. The same goes for purchases made on your business card that’s based on your personal credit. This is the case for most sole proprietors.  However, if you use your corporate card, the rules change a bit.  Limited liability corporations and companies who use traditional corporate credit cards won’t be covered under the umbrella of the new credit card laws.

This isn’t to say that the laws won’t change in the future.  Recently, legislation has been introduced to the House of Representatives that proposes covering small businesses with 50 employees or less by the new credit card rules.

Jean Chatzky, SCORE Guest Blogger
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2 Comments January 22, 2010

Finance: Overcome Credit Card Debt

We are barely making our minimum credit card payments every month. I can feel us slowly slipping out of control. HELP!

I’m glad that you contacted us before things get totally out of control…a position that many Americans find themselves in today. Even making just the minimum payments on your credit cards is not a good situation.

First, depending on your situation, you may be able to save hundreds on your credit card interest just by asking for a lower interest rate. (Follow these steps.)

Before things get out of control, consider using a credit counselor. One we like is a non-profit organization called the National Center for Credit Counseling. You can find out more at www.nfcc.org or by calling 800-388-2227.

By simply stating where you live, the NFCC will hook you up with a credit counselor in your area who will help you get aback on track by, possibly, helping you consolidate some of your credit, negotiate with credit card companies, and so on.

Not all credit counseling services are legitimate, so make sure you know what to look for to protect yourself.

And don’t wait. Do it today! You CAN get your debts under control.

-Daria Dolan, guest blogger

3 Comments July 18, 2008