Companies such as American Express, Bank of America, Capital One, Citibank and Wells Fargo have been raising their interest rates for new small-business credit cards offered via the internet approximately six times faster than the typical consumer card, according to USA Today.
The new evidence has encouraged lawmakers to continue pushing forward new measures of financial reform. Interest rates for the small-business cards were 13.7 percent higher in April than they were in October, a much larger increase than the 2.4 percent for consumer cards.
Last year, advocates of bank reform urged Congress to help protect small business from predatory credit card companies. Though they were unsuccessful, many are hoping that this year there will be action taken to assist budding entrepreneurs.
"Fifty percent of small business fail in the first five years, and their balances tend to involve larger amounts," Nessa Feddis, senior counsel for the American Bankers Association, told the news source. She said that the increased rates elevate risks for new businesses.
According to MSNBC, one of the best ways to combat credit card debt is to stop using credit to make purchases altogether. When shopping online, using a debit card and protecting oneself with a secure payment service is a smart way to spend.