After reading this post, you will realize why Chase business credit card is the worst credit card for (your) business. Loan sharking and unfair change in terms are the major reasons why.

While SEO is an important aspect of your business, it’s also important to make the right financial decisions. That’s why today, I’m writing about something that can seriously affect your business’ bottom line: the selection of a business credit card.

Many small businesses do not qualify for traditional small business loans (certainly not in today’s economic climate) and that is the reason why so many small business owners turn to credit cards to pay for equipment, software or other needs. In official terms this is called “bootstrapping“, with its official business definition of starting a business without external capital/help, which in many cases means borrowing against a personal credit card or applying for a (new) business credit card.

While Chase used to be a reputable and trustworthy bank, many business owners (including myself) either applied for a new business credit card or took advantage of a 0% interest balance transfer offer. Three years ago, I actually applied for a new Chase business credit card for my business when I received Chase’s offer in the mail of 0% on all purchases for 1 year. That card came with a decent credit line and I used it for every day business expenses.

Then after 1 year, Chase started charging interest on my balance (which I expected), so again, no problems. But then the economy tanked and Chase gradually increased the interest rate every few months, until it reached almost 18% in the spring of 2009. I, however, wasn’t notified of these interest rate increases, something that can be considered an unfair business practice.

Due to unforeseen circumstances, I was late on 1 payment and Chase immediately raised the interest to 29.99%. Calling Chase did not help and the fact that I had been a valued customer who always paid his bills on time didn’t matter either. Instead I was being patronized and told in a very rude manner that the 29.99% was the interest rate I was having from now on. I made several phone calls with Chase’s “customer service” to dispute the higher interest rate and told them I could not afford to make the ridiculously high minimum payment. They then forced me to close the account and told me to pay the entire balance within a week’s time or they would report my account to the credit bureaus.

I made a verbal agreement with them, that I would pay the entire balance if they would waive three $39  fees. I did what I promised: I paid them the entire balance within 1 week. But I should have known better in that Chase doesn’t honor “agreements“, in particular not verbal agreements: so instead of just having to pay the double-billing cycle interest charge, I know had to pay all fees + interest + a new over-the-limit charge. I thought I was done with Chase when I paid off my accounts with them. But instead I have to endure months of additional harassment from Chase.

Chase was one of the banks that received government bailout money: 25 billion. This was probably not enough to cover all the expenses that they incurred with their lavish lifestyles, gambling with high-risk mortgages and year-end bonuses. So instead, Chase went to its small business card customers and other customers to foot the bill: raising interest rates to 29.99% for no reason or forcing people who had accepted a 0% interest balance transfer, to suddenly pay a 2% minimum or force them into a higher interest rate bracket.

Judging from the numerous posts and complaints on sites such as epinions and change in terms, the way Chase is treating its loyal customers has reached a new low in the credit card industry. It is no surprise that many have taken it upon themselves to start lawsuits. Soon, our government will sign a new law into effect that will protect the interest of the American consumer and American small business owners: we just have to wait and see if this will actually help us or be another tool for the banks to rip off their customers.

The new business model that Chase has adopted recently has more similarities with loan sharking than anything else. You can probably expect better customer service and better terms from your local payday loan company than from Chase.

But Wait There’s More: Chase has found another way of ripping off unsuspecting customers: customers who have set up automatic debits from their checking accounts, may receive messages from Chase claiming their automatic payments didn’t go through by the due date, but that their payments (“miraculously”) went through days after the due date, giving Chase yet another reason to charge its customers the $39 late fee and raise interest rates.

In summary: Chase business credit card is the worst credit card for business. Let’s stop these parasites once and for all.

More Chase Mayhem:

• help! i’m being hounded by chase! – 180px-chaseaustinretrodesign.jpg for a few years now, i have rented a small shack down by a harbor not far from new york city. i keep stuff there. it’s a relic of a time past when i was sort of crashing on my own. …

• Mouse Print»Blog Archive » Chase Credit Cards: How to Avoid 32.24 … – Chase change in terms Do you ignore those fine print notices that credit card issuers send out from time to time? They are often accompanied by a letter that says there will be a “change in terms,” but it leaves the details to the fine …