This includes our list of the best business credit card for bad credit and best secured business credit card for bad credit.
If you’re looking to start your own business, but have bad credit, then a business credit card might be the answer for you. A business credit card will provide you with the opportunity to build up your credit score and establish a successful track record of borrowing money without defaulting on payments. In this blog post, we’ll talk about some of the best cards available for those with bad or no credit–and how they can help grow your small business into something bigger!
When you’re looking for the best credit card, it’s important to take a look at what type of business cards and business banking options work best with your needs.
Related – Credit Saint Features And How It Works
4 Best Business Credit Cards For Bad Credit
The Capital One Spark Business Card can be used anywhere Visa or MasterCard are accepted and has no annual fee and helps you build your credit while you earn rewards.
- No annual fee
- Earn unlimited 1% cashback for your business on every purchase
- $ fraud liability if your card is lost or stolen
- Minimum payment will be either $15 or 1% of your balance (whichever is greater) plus new interest, late payment fees, and any past due amount
- Free employee card
- Customize spending limits for employee cards
- 26.99% variable APR
- Late payment fee is $39
- No sign up bonus
- Only earns 1% cashback while the Capital One Spark Business Cash earns 2% plus has a sign up bonus (need good to excellent credit)
Bank Novo isn’t a credit card company but an award winning business technology company that offers free business checking accounts. You can use this account for all of your business banking needs without needing to get a credit card.
- No monthly fees or minimum balance requirements
- No hidden fees
- No credit history needed to apply
- Apply in less than 10 minutes
- Simple mobile app that can be used anywhere
- Free transfers, mailed check and incoming wires
- Refunds all ATM fees
- Thousands of dollars in exclusive business perks with Hubspot, Google Cloud, Stripe, Gusto, Booking.com, Segment, Google Ads, Go daddy, Salesforce Essentials, and so much more.
- Backed with FDIC insurance
- Integrates with Shopify, Stripe, Quickbooks, Zapier, Slack and more.
- Accept debit and credit card for your invoices
- Set money aside for taxes, payroll or other expenses with Novo Reserves
- Novo debit card is EMV chip protected and accepted worldwide.
- Use your Novo card with Apple Pay and Google Pay.
- $50 deposit to unlock all the features Bank Novo has to offer
- Bank Novo is unable to work with businesses related in cryptocurrencies, privately-owned ATMs, money services, gambling, crowdfunding, adult entertainment, and marijuana/cannabis companies.
- Because Novo isn’t a credit card it does not help you build business credit
3. Brex Card – Best For No Personal Guarantee
Brex is a financial technology company that offers a corporate credit card with no personal guarantee and no personal credit check. Brex will also help you build your business credit.
- No annual fee and no personal guarantee needed
- Earn Rewards: 8X on rideshare, 5X on Brex travel, 4X on restaurants, 3X on recurring software and 1X on the rest
- Get 30,000 points after spending $3,500 or 50,000 points after spending $9,000 in the first 30 days.
- Build Business Credit: Brex partners with Dun & Bradstreet and Experian to report your on-time payments so you can build your business credit
- Track Business Expenses: Issue cards to your employees, set custom limits and auto-match receipts.
- Credit Limit: Instead of basing your credit limit off your FICO score, Brex doesn’t check your credit and instead uses your company’s financial information that includes available cash spend, credit history and spending patters to determine your credit limit.
- Software Integration: Brex integrates with Quickbooks, Xero, Oracle NetSuite, Gusto, Expensify and more
- Instant Payouts: get paid instantly from Shopify, Amazon, Stripe, Square, and PayPal
- Partner Perks: Brex partners with Apple, AWS, Quickbooks, UPS, Gusto, Slack, Google Ads, Experian and more to offer you over $150,000 worth of perks.
- Brex card must be paid daily (unless you qualify for the monthly payments credit card)
- No 0% intro APR
Tillful is a company that helps small business owners launch their businesses, get funding and build business credit. Tillful has teamed up with credit reporting agencies to help you build your business credit through your business expenses.
- No interest or fees
- Will not pull your personal credit
- Build business credit with monthly recurring expenses like utilities, subscriptions and on-going contractor payments, rent payments, and auto leases
- Reports to all three business credit bureaus Dun & Bradstreet, Experian, and Equifax
- Earn 1.5% cashback rewards
- Early access only available as this card is brand new and hasn’t been launched yet
If you shop online at Amazon for your small business or have an eCommerce business having an Amazon credit card could be beneficial to you. The Amazon Secured Credit Card is the best option if you shop online while you rebuild your credit.
- No annual fee
- Get 2% back at Amazon with an eligible Prime Membership
- Can be used at Amazon.com and Amazon physical stores
- Free access to your TransUnion credit score
- After 12 months of responsible use, you might be eligible for the Amazon Store Card which gives you 5% rewards on Amazon purchases with no credit inquiry needed.
- Your security deposit will be refunded when the balance is paid and the account is closed.
- Reports to credit bureaus to help you build your credit
- Requires a security deposit that can be made in $50 increments anywhere from $100 to the maximum of $1000.
The Wells Fargo Business Secured Credit Card is best for a business just starting out, or has little to no business credit history or a business that has had business credit issues in the past. This credit card also offers one the hight credit lines available for secured credit cards.
- No annual fee
- Earn 1.5% cashback on qualifying purchases
- Earn 1 point for $1 spent on net purchases, get a 1,000 bonus points when your company spends $1,000 or more in any monthly billing period
- Zero liability protection
- $500 to $25,000 credit line
- No foreign transaction fee
- Up to 10 employee cards
- New business secured credit card applications are not accepted at Wells Fargo branches
- Does not report to the consumer credit bureaus so it will not help you rebuild you increase your personal credit history
What Is A Secured Business Credit Card?
There are two main types of business cards- secured and unsecured. Secured business credit cards require an upfront deposit that is usually $200 or more in order to be approved– this lets potential lenders know that you’re not just taking on debt that could be defaulted. Once the credit card is approved, it’s an additional step to make a deposit of $200 or more in order to use the secured business card for purchases.
Unsecured business cards don’t require any type of initial deposit and offer better rates than secured business credit cards. Most business credit card do require good to excellent credit but you can still apply for good business cards with fair to poor credit.
How To Apply For A Business Card With Bad Credit?
There are many things to consider when applying for a business credit card with bad credit, but the first step is getting approved. You’ll need to know your total monthly income and how much you spend each month before submitting an application. That way they can better estimate what type of limit would be best for you.
When applying for a business credit card you will need to have:
Is There A Credit Check For Business Credit Cards?
Yes, anytime you apply for a credit card — the business card or personal, there is a credit check. It’s how they determine your credit score/rating and it determines if you get approved for that card– secured or unsecured!
However, if you have no business credit or bad personal credit you can apply for some credit cards that require no credit check. If you are working on your business credit and did not get approved for a business credit card, start out by signing up with Creative Analytics, which is a net 30 vendor (which means you pay within 30 days of your purchases) and they report to the commercial reporting agencies to help build your business credit. They don’t require a credit check but they do require you to have a tax ID number, DUNS number, and have no delinquencies or derogatory business reporting.
Related: 5 Best Business Checking Accounts
How To Get Approved For A Business Credit Card :
- Search online for business credit cards with no deposit or low down payment requirements.
- It’s best to have a long history of positive consumer reports, as well as the ability to provide some tax returns and pay stubs. The easiest way is to start small by requesting an unsecured card.
- If you have not had any credit in the past, or negative reports (e.g., bankruptcies/foreclosures), it’s best to wait a year and build up your business credit before applying for an unsecured card
- Be aware of businesses that cater exclusively to those with bad credit because they’ll often have high interest rates and fees.
- If you don’t qualify for a traditional small business or unsecured card, consider applying for a secured credit card–these cards require an upfront deposit (usually equal to the credit limit of your card)
- Don’t apply for multiple cards at the same time–your credit score might temporarily drop from too many hard inquiries. You can wait 3 months in between each application to make sure your small business gain enough experience on their own before adding more debt load
- If you have any questions about how to improve your financial standing, call your local bank or credit union.
- Having a business credit card improves the chances of getting approved for loans and other financial products in the future
- If you’re approved, don’t forget that the bank will run a credit check on you
6 Tips To Using Your Business Credit Card Responsibly
- Budget: To use the business card responsibly and always make sure you have available funds before purchasing anything with your business card. If you’re spending more than what is in your account, this will result in a high interest rate that can be difficult to pay off– especially if it’s a secured card where an upfront deposit was required .
- To stay on top of your monthly billing statements and ensure that you pay off what’s owed. If not, interest will build up over time which can result in a debt spiral if left unchecked.
- Pay attention to annual fees: Ensure that the business card has an annual fee or any other type of fees associated with it to make sure they’re worth the cost or try to waive the annual fees
- Pay off any balance that’s left by the end of each month so you’re not paying interest on it for months to come .
- Look at your credit limits: if they are too low, try requesting a higher credit limit from business card issuers or find another card issuer who may be willing to provide you
- Automate: Open a business checking account to link with your business credit card to automate your payments. If you have a negative banking history try finding banks who don’t use ChexSystems
Related: 8 Best No-Interest Credit Cards
Why Should You Get A Business Credit Card?
A business credit card can be a great way to build up your credit history. If you currently have bad or no credit, it’s important that you get one as soon as possible and make on-time monthly payments in order to show creditors that you are able to handle the responsibility of having a line of revolving debt. That will help raise your credit score!
Another reason why you want a business credit card is so you can separate your personal and business expenses which will be easier to track your payments, profits, revenue and taxes.
When you have a business credit card and make on-time payments and keep a positive account with your credit card company, you can easily get much higher credit limits with a business credit card than you could with a personal credit card. This is a benefit to you so you can grow your business with ease.
How To Improve Credit Scores:
- Create a budget and stick to it. Try using a budgeting app like Quicken to help you budget and track all of your finances.
- Pay bills on time or early never late!
- Make sure you are paying more than the minimum balance owing on all of your accounts
- Utilize credit cards responsibly by paying off the balance in full each month to avoid paying interest
- Don’t open too many accounts at once. This is can lower your credit score by having to many hard inquiries show up on your credit report.
- Never close any credit card accounts. You will lose all of your payment history, credit length, and lower your available credit line if you close any credit cards. If you don’t plan on using a credit card as much schedule a low monthly payment such as a subscription service and setup auto payments.
- Increase your credit length. Banks love to see you have a long credit history it shows you are responsible and can pay back any money they loan. If you don’t have a long credit length (10 years or older for best results) ask a friend or family member to add you as an authorized user. They don’t need to give you access to their credit cards but it will benefit you if they have good on-time payments, a long credit history, and a high credit limit available.
- Add a tradeline. If you don’t know anyone that will add you as an authorized user you can buy a tradeline which is similar to being added as an authorized user.
Related: What Are Tradelines
If you have bad credit or no business credit you can still apply for business credit cards. Use the business credit card responsibly by making on-time payments, keeping your debt low, paying off your balance to avoid paying interest and linking your credit cards and business checking accounts to automate payments. Focus on building your business credit so you can apply for credit cards that offer the best rewards and interest rates, and get better funding for your business.
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- The best credit cards for your credit score
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