If you’re a business owner with less-than-perfect credit, no need to fret—there are credit card options specifically designed for individuals in your situation.
Usually, these are referred to as bad credit business credit cards. As that suggests, their main advantage is they provide an opportunity to build or rebuild credit while enjoying the benefits of a credit card. Some that stand out from the pack are the Capital One Spark Classic for Business and Brex Card. Then there’s the Bank of America Business Advantage Unlimited Cash Rewards Secured, as well as the Discover it Secured Credit Card.
Each one has its own unique benefits, but all of them have one thing in common: they don’t require an excellent credit score. Also, neither one has an annual fee. At the very least, that means it’s one less thing to worry about, which is particularly important for business owners with limited resources.
Bad Credit Business Credit Card Comparison Chart
|Product Name||Capital One Spark Classic for Business||Brex Card||Bank of America Business Advantage Unlimited Cash Rewards Secured||Discover it Secured Credit Card|
|Price||Check Price||Check Price||Check Price||Check Price|
|Credit Score Required||Average||No personal guarantee required||Poor or no credit history||Rebuilding or no credit history|
|Foreign Transaction Fee||No||No||3%||No|
|APR||29.99% variable||17.99% to 23.99% variable||27.99% variable||27.74% variable|
|Deposit Fee||No||No||$1,000||$200 minimum|
Capital One Spark Classic for Business
Best business credit card with bad credit overall.
The Capital One Spark Classic for Business is distinct in that it’s an unsecured business credit card with a high probability of getting approved, even with an average credit score. For the record, this kind of card is usually difficult to obtain without good credit. Moreover, there’s no deposit required, and on top of that, there’s no annual fee either. All in all, it’s a cost-effective option, providing an opportunity for an impeccable credit history.
Also, cardholders can request for free employee cards, simplifying expense tracking and giving the team the ability to make important purchases as needed. In the same vein, its cash-back program is as clear as it can get: 5 percent on hotels and car rentals booked via Capital One Travel and 1 percent on other purchases. Last but not least, there’s no foreign transaction fees, which comes in handy for those who need to use the card outside the United States.
If there’s anything to complain about, it’s that it doesn’t include an introductory offer, but for most folks, that’s likely a non-issue.
Best bad credit corporate credit card.
For those with a poor credit rating, the Brex Card is an easy way to get a hold of a dedicated business credit card. First off, it doesn’t have an annual fee, but the best part is, there’s no personal credit check or a deposit required. All an applicant needs is an EIN.
Needless to say, the company doesn’t just hand out cards willy-nilly. It does, however, go against the grain in that it looks at the spending habits, investors and balance of a business to figure out whether or not it’s qualified.
Another advantage to it is there’s a welcome bonus worth 10,000 points—that is, if you spend at least $3,000 within the first three months. Then there are a ton of ways to continue earning points, but it isn’t as straightforward: Customers stand to get 7x points on rideshare, 4x on Brex travel, 3x on restaurants, 2x on software and 1x on other purchases.
As an additional benefit, it also plays nicely with accounting and bookkeeping software. To be exact, it’s integrated with QuickBooks Online, QuickBooks Desktop, Sage Intacct, Expensify, NetSuite, Xero, Concur, Pilot, CoupaPay, Conferma Pay and Rippling.
Bank of America Business Advantage Unlimited Cash Rewards Secured
Best bad credit business credit card with travel perks.
At first, the Bank of America Business Advantage Unlimited Cash Rewards Secured may not seem as the most enticing option. After all, it requires a $1,000 deposit, which is then set as the applicant’s line of credit once approved. That said, the company might upgrade users to an unsecured business credit card down the line if they maintain a good credit score.
Aside from that, it has the advantages you’d expect from a card of its kind, including zero annual fees. Also, it offers 1.5 percent cashback on all purchases, as well as cash flow management tools for transfers, automatic payments and downloading transactions to QuickBooks. Additionally, Business Advantage 360 subscribers can easily view their Dun & Bradstreet credit score free of charge.
Also, it provides $100,000 in travel accident insurance, and it even includes auto rental insurance, emergency ticket replacement, lost-luggage assistance and legal and medical referrals. In other words, customers get peace of mind when traveling. It does have a foreign transaction fee of 3 percent, though.
Discover it Secured Credit Card
Best secured card to build personal credit for starting a business.
For some folks, a bad personal credit may be keeping them from obtaining a business credit card, and one of the simplest solutions to that is a secured personal credit card. That’s where the Discover it Secured Credit Card comes in, which is specifically designed to build credit history.
First of all, it doesn’t have an annual fee, nor is there any foreign transaction fee, but more importantly, there’s no credit score required to apply. Another benefit is its rewards program, allowing customers to get 2 percent cash back at restaurants and gas stations on up to $1,000 in combined purchases each quarter, as well as 1 percent on other purchases. Then there’s an intro offer where the company will match all the cash back you’ve managed to earn after your first year. In short, it’s perfect for those who have limited resources.
That’s not all either, as it’s a feasible way to acquire an unsecured line of credit. After seven months of an application, the company automatically reviews an account and checks whether the user is eligible for transition. It’ll even return their deposit to boot.
Why should you get a business credit card?
When it comes to managing your business expenses, having a dedicated business credit card can be a game-changer. Not only does it provide a convenient and efficient way to separate personal and business finances, but it also offers a range of benefits that can help streamline your operations and improve your financial management.
Improved Expense Tracking: One of the most significant advantages of a business credit card is the ability to track your expenses easily. By using a separate credit card for your business transactions, you can keep personal and business expenses separate, simplifying your bookkeeping process. Many business credit cards provide detailed monthly statements, categorizing your expenses by type. Thus, they make it easier to analyze and manage your spending. This feature can be particularly beneficial during tax season when you need to gather accurate information for filing purposes.
Establishing and Building Business Credit: A business credit card can play a crucial role in establishing and building your business credit profile. By using your card responsibly and making timely payments, you demonstrate your ability to handle credit effectively. Over time, this can help you build a positive credit history for your business, which can open doors to higher credit limits, better interest rates and improved access to other financial products, such as loans or lines of credit. Building a strong business credit profile can be advantageous when you need financing for expansion or investment opportunities.
Increased Purchasing Power and Flexibility: Business credit cards often come with higher credit limits compared to personal credit cards. This increased purchasing power allows you to make larger business purchases, stock up on inventory or invest in equipment without straining your cash flow. Additionally, many business credit cards offer flexible payment options, such as the ability to carry a balance or pay in full each month, giving you more control over your finances and allowing you to optimize cash flow based on your business needs.
Rewards and Perks: Business credit cards frequently come with attractive rewards programs tailored to business spending. These programs may offer cash back, travel rewards or points that can be redeemed for various benefits like airline tickets, hotel stays, office supplies or even statement credits. By strategically using your business credit card for daily business expenses, you can earn rewards and perks that can help offset costs, save money or provide extra benefits for your business. These rewards can be especially valuable if your business requires frequent travel or has significant expenses in specific categories.
Enhanced Financial Security: Using a business credit card for your business transactions provides an additional layer of financial security. Unlike debit cards or personal checks, credit cards offer protections against fraudulent charges and unauthorized use. If a fraudulent transaction occurs, you can typically dispute it with your credit card issuer, and you won’t be held liable for the charges while the issue is being resolved. This added security can protect your business from potential financial losses.
In conclusion, these bad credit business credit cards offer unique advantages for individuals with less-than-perfect credit. Whether you’re looking for rewards, credit-building opportunities or a chance to transition to unsecured credit, there is a card that can meet your needs.
To reiterate, the Capital One Spark Classic for Business is a viable option because it’s an unsecured business credit card with higher-than-usual chances of getting approved. In a similar vein, the Brex Card is a convenient way to obtain a card because there’s no personal credit check or deposit fee involved. Then there’s the Bank of America Business Advantage Unlimited Cash Rewards Secured that comes with travel benefits that are hard to beat. Plus, users have the opportunity to transition to an unsecured credit card by maintaining a good credit score. Last but not least, the Discover it Secured Credit Card makes it easy to get an unsecured line of credit, offering a generous intro offer and straightforward rewards program.
It goes without saying that picking one that suits your business requirements and credit goals will help you achieve your financial objectives and pave the way to a stronger credit score in the future.