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 treats its business credit cards the same as consumer-oriented credit cards under 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.