Easy to Get Small Business Credit Cards for People With Bad Credit
Business Credit Cards For Bad Credit: 9 Top Options For Your Small Business
Small businesses with bad credit or startups with no credit still need access to credit cards, especially if they are trying to build or boost a credit score. Here are our top bad credit or no credit check options.
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Business credit cards for bad credit can be very useful for those of you starting and running a new business, when access to credit is vitally important. While your credit score shouldn't prevent you from pursuing your business goals, having bad credit will, unfortunately, prevent you from getting a top-tier rewards card.
However, if this is you, there are business credit cards you can qualify for. Small business credit cards for bad credit can not only help you finance your business — they can also help you boost your score and qualify for a better card later on.
Let's look at your best options.
Introducing Divvy Credit Builder
| Divvy | Visit Site Read our Review |
|---|
Divvy offers a free corporate card for virtually any business. The Credit Builder card is suitable for business with bad credit or no credit. Start earning rewards with your corporate spending today. Get your free card.
Learn More About Our Top Picks
Read more below to learn why we chose these options.
Table of Contents
- The Best 9 Business Credit Cards For Bad Credit
- 1. Ramp: Best For No Personal Guarantee & Bad Credit
- 2. Divvy: Best Charge Card For Bad Credit
- 3. Brex: Best Corporate Card For Bad Credit
- 4. Spark Classic From Capital One: Best Unsecured Card For Bad Credit
- 5. Wells Fargo Business Secured: Best Secured Card For Bad Credit
- 6. Credit One Bank Platinum Visa: Best Personal Credit Card For Bad Credit
- 7. Discover it Secured: Best Secured Personal Credit Card For Bad Credit
- 8. Platinum Secured From Capital One: Best For Rebuilding Credit
- 9. OpenSky Secured Visa: Best For Startups With Bad Credit
- What's Needed & How To Apply For A Business Credit Card With Bad Credit
- Step 1. Gather Documentation
- Step 2. Submit Application
- Step 3. Place Security Deposit
- Step 4. Wait For Approval
- Step 5. Activate Card
- How To Rebuild Your Personal Or Business Credit
- Make On-Time Payments
- Pay Debts In Full If You Can
- Use Your Credit Card To Build Credit
- Check Your Credit Score Regularly
- Track & Observe Your Spending Habits
- FAQs About Bad Credit Business Credit Cards
- Alternatives To Getting A Business Credit Card With Bad Credit
- In Summary: The Best 9 Business Credit Cards For Bad Credit
The Best 9 Business Credit Cards For Bad Credit
If you're looking for business credit cards that are best for when you have bad credit, the following cards have low entry points.
- Spark Classic From Capital One: Best Unsecured Card For Bad Credit.
- Wells Fargo Business Secured: Best Secured Card For Bad Credit.
- Credit One Bank Platinum Visa: Best Personal Credit Card For Bad Credit.
- Discover it Secured: Best Secured Personal Credit Card For Bad Credit.
- Brex: Best Corporate Card For Bad Credit.
- Ramp: Best For No Personal Guarantee & Bad Credit.
- Platinum Secured From Capital One: Best For Rebuilding Credit.
- OpenSky Secured Visa: Best For Startups With Bad Credit.
- Divvy: Best Charge Card For Bad Credit.
1. Ramp: Best For No Personal Guarantee & Bad Credit
| Ramp | Apply Now Read our Review |
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Best for no personal guarantee.
Pros
- No personal guarantee required
- No credit check required
- Unlimited 1.5% cash back
Cons
- High cash-in-bank requirements
- No mobile app
The Ramp corporate card is unique in that it carries no fees whatsoever. No annual fee, no foreign transaction fees, no late fees, no employee card fees… you get the idea. You even get expense management software and employee spend controls for free. And like Brex, Ramp doesn't require a personal guarantee and doesn't perform a credit check on applicants. To top it all off, you'll get 1.5% cash back on all purchases.
Sounds amazing, right? Well, it can be, if your business qualifies. To do so, your business must be a US-based corporation, LLC, or LP. Individuals, sole proprietors, and other types of unregistered businesses need not apply. Furthermore, you must have at least $75,000 in cash in a US bank account.
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2. Divvy: Best Charge Card For Bad Credit
| Divvy | Visit Site Read our Review |
|---|
Best charge card.
Pros
- Flexible rewards scheme that matches your bill payoff frequency
- No annual fee
- No employee card fees
Cons
- Using Divvy responsibly improves your business credit but does not affect your personal credit
- Foreign transaction fee
The Divvy corporate card's selling point is its unique rewards scheme: the more frequently you agree to pay off this charge card, the more rewards you'll earn.
- Pay off your card weekly and earn 7x points on restaurants, 5x on hotels, 2x on recurring software subscriptions, and 1.5x on everything else
- Pay off your card bi-weekly and earn 4x points on restaurants, 3x on hotels, 1.75x on recurring software subscriptions, and 1x on everything else
- Pay off your card monthly and earn 2x points on restaurants, 2x on hotels, 1.5x on recurring software subscriptions, and 1x on everything else
Divvy offers users with poor business credit a secured charge card — by making their payments, these users can work their way towards getting an unsecured credit line.
Note that responsible use of your Divvy card will improve your business credit but will not impact your personal credit. According to Divvy, "Divvy Credit Builder is only reporting activity that may impact your business credit."
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3. Brex: Best Corporate Card For Bad Credit
| Brex | Apply Now Read our Review |
|---|
Best corporate card.
Pros
- Earn 8x points on rideshares, 5x on Brex Travel, 4x on restaurants, 3x on recurring software, and 1x on everything else
- No credit check required
- No personal guarantee required
Cons
- High cash-in-bank requirements
If you're running a startup with high growth potential but poor credit (or even no credit history whatsoever), the Brex card is a unique value proposition. Brex doesn't even check your credit score when you apply — factors such as your cash balance and your spending patterns are considered instead. What's more, the Brex Card is one of the very few business credit cards that require no personal guarantee — you won't be held personally liable for any business debt. Also, Brex is a charge card, so you can't carry a balance month-to-month.
The Brex card offers vastly higher points-earning rates than just about any other credit card available to borrowers with poor credit. You can earn as much as 8x points on rideshare/ taxi purchases. To earn these rewards, you'll need to make Brex your exclusive corporate card, however. Additionally, you can get additional cards for your employees for free. The card's big catch is that many such new businesses won't meet Brex's high cash flow requirements and/or won't have enough cash in the bank ($50K in the bank is required for startups with investors, and $1 million is required if your business is self-funded) to be considered.
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4. Spark Classic From Capital One: Best Unsecured Card For Bad Credit
| Spark Classic from Capital One | Visit Site Read our Review |
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| Capital One Spark 1% Classic | Annual Fee: $0 Purchase APR: 26.99% (variable) |
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Best unsecured card.
Pros
- Unlimited 1% cash back on all purchases
- No annual fee
- Employee cards available for no additional cost
When it comes to unsecured business credit cards for bad credit, the Spark Classic from Capital One deserves a look. Marketed as a business card for people with "average" credit, it carries a high APR of 26.99% (variable), which is the card's main drawback.
On the plus side, you'll earn an unlimited 1% cash back on every purchase, which is good for an unsecured business credit card accessible to those with fair credit. The card also carries no annual fee, no foreign transaction fee, and you can get additional employee cards (for which you can set customized spending limits) at no extra cost. Another benefit of the Spark Classic is that Capital One reports your card activity to several business credit bureaus so you can improve your business credit score, provided you make your payments on time.
Get Started With Spark Classic from Capital One
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5. Wells Fargo Business Secured: Best Secured Card For Bad Credit
| Wells Fargo Business Secured Credit Card | Visit Site Read our Review |
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| Wells Fargo Business Secured Credit Card | Annual Fee: $25 per card Purchase APR: Prime + 11.90% |
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Best secured card.
Pros
- Unlimited 1.5% cash back or 1 point per $1 spent + 1,000 points each billing cycle after spending $1,000+
- No annual fee
- Employee cards available for no additional cost
Cons
- Limit of 10 employee cards
- Security deposit required
The Wells Fargo Business Secured Credit Card is a business credit card for bad credit that requires a security deposit of at least $500 (to a maximum of $25,000) which establishes the amount of your credit line. It's another card that reports your card activity to the credit bureaus, thus helping you build your business credit if you make your payments on time. Do this, and you may be eligible for an upgrade to an unsecured card later on, in which case you'll get your security deposit back.
The card's purchase APR is Prime + 11.90%. The card carries no annual fee or foreign transaction fee, and you can get up to 10 employee cards. As for rewards, you can choose to get either cash back or reward points. Choose cash back, and you'll get 1.5% cash back on every $1 spent. Choose reward points and earn one point on every $1 spent and get 1,000 bonus points when your company's spending is $1,000+ in any monthly billing period.
Get Started With Wells Fargo Business Secured Credit Card
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6. Credit One Bank Platinum Visa: Best Personal Credit Card For Bad Credit
| Credit One Platinum Visa For Rebuilding Credit | Visit Site Read our Review |
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| Credit One Platinum Visa For Rebuilding Credit | Annual Fee: $75 for the first year; $99 thereafter Purchase APR: 23.99% (variable) |
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Best unsecured personal card.
Pros
- 1% cash back on gas, groceries, and monthly mobile phone, internet, cable, & satellite TV services
- Certain accounts get a 24-day interest grace period each month
Cons
- Up to $99 annual fee (up to $75 the first year)
- $19 charge to add another authorized user
The Credit One Bank Platinum Visa for Rebuilding Credit isn't a business credit card, but it can be used by entrepreneurs with iffy credit as a credit card option. The Credit One (not Capital One) Bank Platinum Visa carries an APR of 23.99% (variable) — relatively average for a poor-credit card. Certain accounts will be given a monthly interest grace period of at least 24 days after the close of each billing cycle.
Interest will not be charged on purchases if your entire balance is paid by the due date each month. This won't apply if you aren't granted an interest grace period. Sadly, you'll also owe an annual fee of up to $99 ($75 your first year). The exact fee depends on your creditworthiness, so the primary audience of this article will likely be paying a fairly high annual fee.
The nicest benefit of the card is undoubtedly the 1% cash back you'll earn on gas, groceries, mobile phone plans, and cable, internet, & satellite TV services. However, there's also a $19 charge to add another authorized user; this comes into play if you add an employee to your account. Lastly, there's a 3% foreign transaction fee. So while using the Credit One Bank Platinum Visa for Rebuilding Credit will see you earning cash back and can help you boost your credit score, it might not be the most friendly card for some users.
Get Started With Credit One Platinum Visa For Rebuilding Credit
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7. Discover it Secured: Best Secured Personal Credit Card For Bad Credit
| Discover it Secured | Visit Site Read our Review |
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| Discover it Secured | Annual Fee: $0 Purchase APR: 24.49% (variable) |
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Best secured personal card.
Pros
- 2% cash back on up to $1,000 on gas station & restaurant purchases each quarter, 1% cash back on everything else
- Discover matches all the cash back you earn in your first year
- No annual fee
Cons
- High APR
- Security deposit required
Discover it Secured is a secured consumer credit card that can be used for business. The minimum deposit is just $200, while the max reaches up to $2,500. You can expect a high-ish APR of 24.49% (variable), and the card carries a grace period of 25 days until interest on purchases starts to accrue. The card carries no annual fee and no foreign transaction fee.
For rewards, expect 2% cash back at gas stations and restaurants (up to $1,000 per quarter). This 2% rate is among the highest you can snag for poor-credit cards. All other purchases get 1% cash back. On top of those base rewards, Discover will match whatever you earn for your first year — effectively giving you 4% back on gas station and restaurant purchases and 2% everywhere else.
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8. Platinum Secured From Capital One: Best For Rebuilding Credit
| Platinum Secured from Capital One | Visit Site Read our Review |
|---|
| Platinum Secured from Capital One | Annual Fee: $0 Purchase APR: 26.49% (variable) |
|---|---|
Best for rebuilding credit.
Pros
- No annual fee
- Flexible due dates
- Security deposit is refundable when you upgrade
The Capital One Platinum Secured card is a no-frills secured personal credit card for bad credit. With no rewards-earning and a high APR, it shouldn't be your first choice for a credit card for your business, but if you're unable to qualify for some of the others, it may be a useful instrument for you — if you responsibly use this card, you can both rebuild your credit and get your deposit back with an upgrade to the unsecured Platinum card.
You'll need to make a deposit of $49, $99, or $200 to use this card. Luckily, once you're approved, you can choose the payment due date that works best for your schedule. But as this card's APR runs high, try not to carry a balance month-to-month.
Get Started With Platinum Secured from Capital One
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9. OpenSky Secured Visa: Best For Startups With Bad Credit
| OpenSky Secured Visa Card | Visit Site |
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Best for startups.
Pros
- Lower APR than many similar cards
- No credit check
Cons
- $35 annual fee
- No rewards
It's a secured credit card with no rewards program, but when it comes to startup business credit cards for bad credit, the OpenSky Secured Visa has some key advantages.
First of all, the OpenSky Secured Visa's APR is lower than that of many competing credit cards in this space. Second of all, when applying for this card, you won't undergo a credit check at all, so you won't have to worry about your credit score taking a hit. The minimum deposit is $200 and the maximum is $3,000. The downside: there's a $35 annual fee and a 3% foreign transaction fee.
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What's Needed & How To Apply For A Business Credit Card With Bad Credit
If you intend to apply for one of these credit cards, here's what you may need to provide, depending on the card. Note that in some instances, applicants with bad credit may be afforded some wiggle room in the application process.
Step 1. Gather Documentation
If you're just applying for a bad credit personal card to fund your business, you may only need to self-report some basic personal and financial information. But if you're applying for a corporate card like Ramp or Brex, you'll need to provide considerably more. Each card listed here has its own requirements, but here's a list of what you may be asked to provide during the application process.
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Legal Business Name & Contact Information
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Business Entity or Legal Structure
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Time In Business & Number Of Employees
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Federal Tax ID (EIN) & Social Security Number
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Annual Business Revenue & Monthly Expenses
Step 2. Submit Application
Once you've collected all the documents and information required by the credit card issuer, it's time to submit your application!
Step 3. Place Security Deposit
If you're applying for a secured card, you'll need to pay a security deposit, the amount of which will become your credit line. Note that responsible card use may lead to you being eligible for an upgrade to an unsecured card, in which case your security deposit will be refunded.
Step 4. Wait For Approval
While wait times will vary depending on the card you're applying for and your individual circumstances, in many cases, you may be notified nearly instantly if you've been approved or not. Be ready to provide additional documentation in case any is requested.
Step 5. Activate Card
Once you get your card, you should begin using it immediately. The sooner you start using it, the sooner you can pay it off, thus improving your all-important credit score. Once your credit score improves, your business financing options will expand.
How To Rebuild Your Personal Or Business Credit
Let's go through what you can do to boost your credit score and expand your business funding opportunities.
Make On-Time Payments
One sure-fire way to hurt your credit score is to miss your payment due dates. Always prioritize making your payments on time!
Pay Debts In Full If You Can
Paying your debts in full both demonstrates your creditworthiness to your creditors and improves your credit utilization ratio (the sum of your balances divided by the sum of your cards' credit limits), which will improve your credit.
Use Your Credit Card To Build Credit
Start Building Your Credit By Using Your Card
The biggest key to improving your credit with a credit card is to always pay off your monthly balance. By doing so, you'll show creditors that you are a trustworthy borrower. Once you've successfully paid off your balance with a credit card for a while, you may be able to graduate to better cards or apply for low-interest-rate loans.
For more of these tips, check out our article on how to get a business credit card. Another useful resource: our piece explaining how to use a credit card to build credit.
Finally, check out our article on the best business credit cards once you have at least good credit.
Option To Upgrade To An Unsecured Card
Many issuers of secured credit cards offer the option of upgrading to an unsecured card once you've demonstrated responsible use of your secured card, sometimes after six months or so. Once you do this, you'll get your security deposit back.
Check Your Credit Score Regularly
It's always good to check your credit score frequently to monitor your progress in improving your credit health. Some card issuers will give you free access to an in-house credit monitoring service so you can check your score when you log in to your account. Alternately, you can visit a free credit score site — the linked-to article provides several such options.
Track & Observe Your Spending Habits
It's also a good idea to track your spending habits by going through your credit card statements on a regular basis. If you find that you're charging more on your credit card than you intend to, you might consider putting a greater portion of your regular expenses onto your debit card instead (if possible).
FAQs About Bad Credit Business Credit Cards
Getting a credit card is never easy, especially when you have a poor credit history. Here are a few common questions about credit cards for those with poor credit.
Alternatives To Getting A Business Credit Card With Bad Credit
If you have bad credit but are pondering your other business financing options, Merchant Maverick has you covered. Our article on the best startup loans for bad credit contains some useful advice should you decide to go that route. Likewise, if you're thinking about a business line of credit, our piece on business lines of credit for bad credit is a helpful resource.
Introducing Divvy Credit Builder
| Divvy | Visit Site Read our Review |
|---|
Divvy offers a free corporate card for virtually any business. The Credit Builder card is suitable for business with bad credit or no credit. Start earning rewards with your corporate spending today. Get your free card.
In Summary: The Best 9 Business Credit Cards For Bad Credit
- Ramp: Best business credit card with no personal guarantee requirement for bad credit.
- Divvy: Best charge card for building business credit.
- Brex : Best corporate credit card for bad credit.
- Spark Classic from Capital One: Best bad credit unsecured credit card for business use.
- Wells Fargo Business Secured Credit Card: Best bad credit secured credit card for business use.
- Credit One Platinum Visa For Rebuilding Credit: Best personal credit card for rebuilding credit.
- Discover it Secured: Best secured personal credit card for rebuilding credit.
- Platinum Secured from Capital One: Best personal card for rebuilding credit.
- OpenSky Secured Visa Card: Best bad credit personal card for startups with bad credit.
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Jason Vissers has been researching, analyzing, and writing about small business software and finance since 2015. His financial expertise has been cited in numerous publications, including The Ladders. Jason graduated with a Political Science degree from San Diego State University in 2001.
View Jason Vissers's professional experience on LinkedIn.
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Source: https://www.merchantmaverick.com/business-credit-cards-for-people-with-bad-credit/
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