The credit card act of 2009 had some unforeseen consequences since its institution February 22, 2010. Although, the act focuses only on protecting personal credit card users from arbitrary interest increases, over the limit fees, hidden charges and hidden term changes, the act had inadvertently effected the ” hike in [business card interest] rates and fees to compensate for the revenue they will lose on consumer cards as a result of the [credit card act of 2009]“, Says Emily Maltby of the Wall Street Journal, Small Business.

Another unforeseen consequence is that business owners may have a tendency to take advantage of using a personal credit card to maintain or expand their businesses. The problem “is that business owners who rely on consumer cards could wind up damaging their personal credit scores” says, Gerri Detwieler, a personal finance advisor for credit.com. The general rule of thumb for business owners, is to maintain a distinction between their personal and business credit. However, because of economic factors, many business owners may not exercise this rule.

On the other end, the act was also an attempt to increase consumer spending to pull out of the economic recession. In the next few months ahead, many can assume an increase in consumer spending.

Businesses familiar with the EZ business loans credit card based cash advance may find yet another opportunity to use an EZ business loan. With business credit card rates hiking, and consumer credit card use increasing, business owners can use a business cash advance in place of a business card or a personal card. Especially since the loaned is payed through a credit card processor, merchants can expect to pay off their loans quickly because of consumer card use increase.

Sources

Maltby, Emily. “Entrepreneurs Weight Credit Card Options”

Wsj. 11 February 2010 Web. 3 March 2010