While these lending institutions made financing available, they did so at higher interest rates than their mainstream banking counterparts.
“Big banks are becoming increasingly aggressive in small business lending and are adopting technology that makes them more efficient players.”
CardHub scored and ranked the country’s 10 largest credit card issuers based on how clearly their online credit card application pages provide information on rewards, membership fees and key finance costs.
“Put in lending terms, if a consumer borrowed $24 for three days and paid the median overdraft fee of $34, such a loan would carry a 17,000 percent annual percentage rate (APR),” the CFPB says.
The MoneyGram AccountNow Visa Prepaid Card carried 18 fees that a consumer could encounter, compared with the American Express Bluebird card with only 2 fees, CardHub found.
Banks are coming up with cash incentives to swell their customer base, and that means extra money for consumers looking to change where they have their checking or savings accounts.
Big banks are now approving one-in-five small business loan applications, a post-recession high, according to Biz2Credit’s monthly analysis of 1,000 loan applications for June 2014.
The group stressed bitcoin’s apparent advantage to those Americans who are “unbanked”, or not relaying on mainstream financial institutions, whether by choice or because of high transactional fees.
One year later, 9 in 10 of the affected firms report persisting financing needs, mostly of $100,000 or less, to cover operating expenses or to reposition their business.
A New York Congresswoman has taken a leading role as a proponent of bitcoin, especially as a benefit to small businesses and their customers. It’s a refreshing perspective from a smart politician, bitcoiners say.