This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Bank of America Tops Small-Business Study

ARLINGTON, Va. (TheStreet) -- Bank of America (BAC) is the most small-business-friendly credit card company in the U.S., according to a recent CardHub.com Small Business Credit Card Study. Card Hub reached this conclusion after gathering information from the nation's 10 largest banks and evaluating each on the extent to which it has extended Credit CARD Act of 2009 protections to its business credit card offerings, as well as on its transparency about such policies. The study also ranked Wells Fargo (WFC), HSBC (HBC) and U.S. Bank (USB) as the worst-performing issuers in both of these categories. Still, what exactly do these findings mean? How should they influence consumer decisions?

It's important to first understand that credit card branding creates a misperception about so-called business credit cards. These spending vehicles are more consumer oriented than they are tied to individual corporations, as individual consumers are personally liable for debt incurred with them and usage information is relayed to individual consumers' personal credit reports.

Bank of America
Bank of America treats its business credit cards the same as consumer-oriented credit cards under CARD Act protections.

Regulators don't act as if it's the case, but so-called business credit cards should be given the same CARD Act protections as any other consumer-oriented credit card.

The banks who realize this and apply CARD Act protections before regulators inevitably require the change are therefore the most forward-thinking, consumer-friendly business credit card issuers, while those who simply abide by the current enforcement of the law and refuse to be transparent about their policies would seem to be less-sophisticated issuers that small-business owners should avoid.

Card Hub ranked these issuers according to their efforts in giving business credit cards the five most important CARD Act protections:

  • Interest rates on existing balances cannot change unless the account holder is at least 60 days delinquent.
  • No double-cycle billing.
  • Universal default is prohibited.
  • Interest rates on existing balances cannot change unless the accountholder is at least 60 days delinquent.
  • Notice of 45 is required before changing the terms of a card agreement.
  • Favorable payment allocation.

Stock quotes in this article: BAC, WFC, HBC, USB 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,424.85 +162.29 1.00%
S&P 500 1,862.31 +19.33 1.05%
NASDAQ 4,086.2250 +52.0640 1.29%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs