7 Best Business Credit Cards for Bad Credit of 2023 (Ranked)
Having bad credit is a nightmare.
Building your credit from scratch is no easy feat either.
These two factors might get potential business owners to give up before really getting started with their own business.
With credit scores of less than 600 being considered as bad, businesses might sometimes find themselves in a tight spot while needing to apply for a credit card.
Thankfully, there are business credit cards out there that do not require a good to an excellent rating to qualify for one.
This allows business people to get their hands on a card even with a bad credit rating and build credit back up from there.
With that said, ensuring that you’re choosing the best business credit cards for bad credit is always a good idea.
This allows you to successfully make the most out of the chosen card while being able to focus on increasing your credit score.
In this post, I’ll be ranking the best business credit cards for bad credit, presenting you with some of the choices available if you find yourself in this situation.
So, without further ado, let’s get started.
What are the Best Business Credit Cards for Bad Credit?
The following are the best business credit cards for bad credit.
1. Brex Card.
Best overall for combining all needed features in one package.
The Brex credit card combines all of your financial services in one accessible package. It features a business account, credit card, and money management software into one package.
With Brex you may send free ACH and wires worldwide, increase card limits, earn money-saving cashback rewards points, and easily track expenses.
If you have multiple businesses, you can use the same card across all of them, making it easy to manage everything from one single place.
With no fees or minimums, the Brex card is perfect for cardholders with bad credit.
- Use your business payroll software to pay employees, and others, as needed without paying any extra fees, keeping your cash flow strong.
- Pay your bills automatically through card scheduling so you can save time and avoid late fees.
- Unlock higher limits as your business credit score improves.
- Track expenses instantly through their app so you can easily keep an eye on your expenses.
2. Capital One Platinum Secured Credit Card.
Best for checking for approval without influencing your credit score.
A Capital One Platinum Secured Credit Card is great if you are scared that your past credit history will affect your ability to get a business credit card.
You can see if you’re pre-approved for this credit card with their application process that does not affect your credit score.
Capital One also offers a secured card which means that you have to put down a refundable (options start at $49, $99, or $200 as a minimum) security deposit that becomes your credit limit.
This card is perfect for those with a bad or no credit history because it can help build or improve your credit rating over time.
- The refundable deposit is an incentive to be responsible for your spending and will help improve your credit score as time goes by.
- With flexible due dates for payments, you can choose the date that best suits your business.
- Get access to a higher credit line after making your first 6 monthly billing payments on time.
- No hidden transaction fees mean that you can avoid all annoying fees when using your credit card.
3. First National Bank Business Edition® Secured® Visa Card.
Best for having the option to secure your credit limit.
The First National Bank Business Edition® Secured® Visa Card gives you the ability to secure your credit limit.
This means that you put down a refundable deposit to determine your credit limit and can withdraw it at any time.
This credit limit can be anywhere between $2000 and $100000 (in multiple of $50), subject to approval.
You can also earn interest on your security deposit and get automatic discounts when it comes to purchases that qualify with their Visa SavingsEdge program.
- Free management reports allow you to keep track of your expenses and see how you’re doing month-by-month.
- Fraud protection gives you the peace of mind that your business is always protected.
- 24/7 online access lets you manage your account and credit card from anywhere.
- Credit flow management gives you flexibility when it comes to buying business supplies, traveling, buying equipment, and more.
4. Navy FCU nRewards® Secured Credit Card.
Best military credit card that earns you perks as you build your credit.
The Navy FCU nRewards® Secured Credit Card allows you to earn points while improving your credit score.
This means that every time you make a purchase with your card, you earn points that can be redeemed for cash rewards.
If you are trying to establish your credit, rebuild broken credit or just need a secured credit card, this is a perfect choice as it helps you do all three.
Finding out if you prequalify is easy and won’t affect your credit score.
- No annual fees are involved which makes it a great choice if you’re looking for a long-term card.
- Get 1x points for every dollar spent on purchases with no limits on rewards.
- Rental car coverage, safety of your cell phone, and travel benefits are all included with your card.
- Collision damage waiver for car rentals means that this comes included in your rental package when renting a car for fifteen days or less.
5. Wells Fargo Business Secured Credit Card.
Best for getting 1.5% cashback on all qualifying purchases.
Wells Fargo Business Secured Credit Card is one of the best-secured business credit cards that you can get to jump-start your business.
This card gives you 1.5% cash back on purchases that qualify.
If you have bad credit, this card is great for building and establishing a good score.
Businesses that had past challenges such as bankruptcies, tax liens, or slow payments can also benefit from this card.
- No foreign transaction fees mean that you can take your business worldwide without incurring unnecessary charges.
- You can have up to 10 employee cards which can help you manage and track employee spending.
- Spending reports are available online, making it easy to keep track of your expenses.
- Up to a $25,000 credit line means that you can get the financing you need for your business.
6. Discover it® Secured Credit Card.
Best for having improved credit scores reported to the top 3 credit bureaus.
Discover it® Secured Credit Card is a card that comes with zero annual fees so you have more money in your pocket and you build your credit score.
This credit score is reported to the top 3 credit bureaus (Experian, TransUnion, and Equifax), which means that you’re able to see your progress each month and successfully track it.
Refundable security is required on all cards – this starts at just $200.
You can get your deposit back after 7 months if you have a good payment history.
If this is the case, you can also request to be converted to an unsecured, standard credit card.
- You’ll earn 2% cash back on up to $1,000 in combined purchases when it comes to gas stations and restaurants each quarter, which you may spend for money anytime.
- With a 99% nationwide acceptance, this card is perfect for businesses that want a single card to use everywhere.
- No annual fees and a 22.99% standard variable APR applies – these fees are transparent so you’re not surprised at any point with extra fees.
- You can turn on or off your account using the “Freeze It” feature so you can prevent new purchases, cash advances, and balance transfers if you lose your card.
7. Avant Credit Card.
Best for having simple and transparent credit fees.
Avant Credit Card is great if you’re not a fan of surprise fees.
This card has a transparent fee structure, which is great if you want to avoid any nasty surprises.
This credit card offers a quick and easy application process, so you can get your card as soon as possible.
With 24/7 payments available through an online portal, this card makes it easy to keep track of your spending, no matter the situation.
The annual fee might vary depending on the offers available through different channels.
Your own credit limit will be set to $1000 which is perfect if you’re looking for a relatively small limit to start with.
- Prompt service available with a simple and easy-to-use online portal.
- A credit limit of up to $1000 to help you get started.
- Choose your monthly payment date so you can ensure that your payments fit into your budget.
- Zero fraud liability means that you’re not responsible for any fraudulent charges.
- With more than 18000 reviews on Trustpilot, this card has an 80%+ A+ ratings.
Other business credit cards not mentioned in this post include Mastercard Standard Credit Card, CITI, American Express cards, and the Capital One Spark Classic for Business.
What are Business Credit Cards for Bad Credit?
Business credit cards for bad credit are used to fund business purchases for those that find themselves in this specific situation.
These cards can help you rebuild your credit score and while they usually have a lower limit, they are also easier to be approved for given the situation.
By using such business credit cards, you’re able to separate your business and personal finance.
This can be helpful if you’re trying to improve your credit rating in either (or both) of these scenarios.
In addition, personal cards shouldn’t be used for business expenses, as this makes expenses difficult to track and could lead to lots of confusion.
These types of business credit cards also offer different benefits for your business so it’s important to do your research before you choose one – you may want to consider the APR, annual fees, and other features.
In fact, let’s look deeper into the factors you should consider when choosing a business credit card for bad credit.
Top Factors When Choosing a Business Credit Card
1. Annual Fees.
The annual fees are one of the things you should look out for before choosing your business credit card.
You can usually find these fees listed online or you may need to contact lenders directly before proceeding.
If you’re going for a card with annual fees, then they must be worth paying if you’re trying to improve your credit rating.
At the same time, there are plenty of good options available to help everyone, regardless of their financial standing, so it might be worth looking into a card with no annual fees.
This is why you must compare business cards with no annual fees with those that do have such fees, ensuring that you’re choosing the best option for your financial needs.
2. Annual Percentage Rate (APR).
Another factor to consider is the APR on the card, which should be within your budget.
This should be something that’s really affordable if you have a poor credit rating.
This rate will usually vary based on what kind of business you have and how much debt you are trying to pay off.
Some business cards might offer an intro first year APR so you can save money on the balance transfer or purchases if you want to reduce your overall debt costs.
An intro APR means that you won’t be charged for a specific period, but this will usually vary depending on what kind of card and provider you choose.
Most business cards for bad credit don’t offer a rewards program because they are designed to help companies improve their finances over time, but some cards might offer cash back or other incentives that can help both businesses and individuals save money in the long term.
It’s important to remember that using an unsecured consumer credit card instead of a secured one is risky because they usually have high-interest rates and fees, which can be a burden if you’re trying to rebuild your credit.
The rewards rate and structure can vary by business and lender but you should stay within your budget and pay attention to what’s available before you choose a card for your business.
Owners looking for small business credit cards or even those looking for a startup business credit card with no credit may be able to get rewards that make business spending easier.
4. Balance Transfer Fees.
If you’re trying to reduce the amount of debt that’s listed on your credit report, it’s important to consider balance transfer fees.
Some providers might waive the fee if you transfer your existing debt onto their card within a specific time frame, or they might offer better rates to help you save money in the long term.
5. A secured business credit card vs an unsecured business credit card.
When you’re looking for a business credit card, it’s important to decide whether you want a secured or unsecured card.
A secured credit card usually requires you to put down a security deposit, which will be used as collateral in case you don’t make your payments.
An unsecured credit card doesn’t require a security deposit but it might have a higher APR and annual fees, which is why it’s important to do your research before applying.
6. Credit Limit.
The credit limit on the card is also something business owners should consider before making their decision.
This limit will be based on your credit score and other factors related to your business.
It’s important to remember that you shouldn’t spend more than what you can afford each month, because this will only make your credit rating worse in the long run.
7. Soft vs. hard credit check inquiries
When you’re applying for a business credit card, it’s important to keep in mind that the provider might usually do a hard inquiry on your credit report.
This means that your credit score might temporarily drop, but it should rebound within a few months if you continue to make your payments on time.
It’s important to remember that the more inquiries you have on your credit report, the lower your score will be.
If you don’t want this to happen, ensure that the potential providers of your choosing do a soft credit check inquiry, which doesn’t affect your credit score in any way.
8. The length of time you plan on having your account open
The length of time your account is open is also something that affects your credit rating.
An account that’s been in good standing for a long period of time will result in a better credit score.
This comes as a result of showing that you’re responsible for your finances and you’re able to make your payments on time.
9. Other Factors
Other factors to consider include any the following, in no particular order:
- Personal guarantee: this is sometimes required if you want to be approved for a business credit card when you have bad credit.
- Savings account option: this is usually an opt-in feature with most business credit cards.
- Billing cycle: this is the frequency and date that your statement closes and payments are due.
- Cash deposit options: some providers might require a cash deposit to open an account.
- Eligible purchases: some cards might have specific restrictions on the type of purchases that are eligible for rewards or cashback.
- Minimum credit score: this is the lowest possible score required for approval.
- Maximum credit debt to income ratio: this should be included in the terms and conditions of the card and refers to the ratio of debts when compared to income.
- Terms and conditions: these should outline any fees, restrictions, and other important details. While most people glance over these, understanding what you’re getting into is crucial.
What is needed to open a business credit card account?
With most business credit cards, there are a few basic requirements you need to meet before you hit the ‘apply now’ button. For example, most providers might require the following:
- An active business (that can be an LLC, partnership, or a corporation)
- Good credit score: usually, a FICO score of 670 or higher is required
- A personal guarantee to help improve your credit score
- Two years of history with your business
- Social security number
- Proof of time payments that have been made to your business – this is why it’s important to use business accounting software that keeps records in order.
While there are various credit card options and requirements, providing these basics will give you a good starting point when applying with various providers.
Best Business Credit Cards for Bad Credit – FAQ
What’s the difference between personal credit cards and business credit cards?
When you apply for a personal credit card, it will usually be based on your income and financial history.
On the other hand, business cards are designed for businesses of all sizes so they can improve their cash flow and manage their expenses more effectively.
In both cases, you’ll need to provide certain documentation to prove that you’re eligible to create these accounts.
What’s the difference between an unsecured business credit card and a secured one?
An unsecured business credit card doesn’t require a deposit when setting up the account which means that there won’t be any delays in getting the card.
A secured credit card usually requires you to put down a security deposit, which will be used as collateral in case you aren’t able to make your payments.
Secured cards are a good option for businesses that have a low credit score because they can help them improve their rating over time while protecting the lender in case something happens to your business.
Can I get a business credit card if I have bad credit?
It depends on the provider, but most of them will offer business cards to companies that have a poor credit rating. This rate will usually vary based on what kind of business you have and how much debt you are involved in.
In addition, bad credit doesn’t mean that you’re not allowed to have a business credit card. It just means that you might not be eligible for the best rates and rewards. Your best option is to compare the different choices and find the card that fits your needs the best.
Why are business credit card issuers concerned with my credit score?
Most business credit card issuers will only extend the line of credit to businesses that have a steady income and good personal credit rating.
This means that your application might be rejected if you don’t meet those parameters.
To improve your chances of being approved, make sure that you have a good credit score and that your business is in good standing.
Are there any benefits to having a business credit card?
There are many benefits to having a business credit card, including:
- Increased purchasing power
- Separation of personal and business expenses
- Tax deductions for business-related purchases
- Rewards and bonus points for spending money on the card
- Extended warranty protection and purchase protection plans
How can I improve my business credit score?
Your best option is to make all of your payments on time and keep your debt levels low. In addition, you should try to get a high credit limit so that you can improve your utilization ratio.
You can also ask for an increase in your credit limit at some point if it’s too low.
To build business credit, you’ll need to have a good credit history with your company.
A fair credit score will be based on business credit ratings, so you should do your best to improve this if you want a better rate.
Creditworthiness can also be improved by constantly making your business credit card payments on time.
What are some of the benefits of having a high business credit score?
Having a high business credit score will give you increased purchasing power and help you get better rates in whatever you do.
This can include anything related to finances and even loan applications.
This is useful when buying equipment, inventory, and improving the productivity of your business.
Credit card companies are usually more willing to lend money to businesses that have a high credit score since they’re considered low-risk borrowers and are less likely to default on their payments.
If you’re looking for a way to improve your small business’ cash flow while having a low credit score, then you might want to consider getting a business credit card from one of the above providers.
To summarize, the following are some of the best business credit cards for bad credit available right now.
- Brex Card: Best overall for combining all needed features in one package.
- Capital One Platinum Secured Credit Card: Best for checking if you’re approved for this card without influencing your credit score.
- First National Bank Business Edition® Secured® Visa Card: Best for having the option to secure your credit limit.
- Navy FCU nRewards® Secured Credit Card: Best for being a military credit card that earns you perks as you build your credit.
- Wells Fargo Business Secured Credit Card: Best for getting 1.5% cashback on all qualifying purchases.
- Discover it® Secured Credit Card: Best for having improved credit scores reported to the top 3 credit bureaus
- Avant Credit Card: Best for having simple and transparent credit fees.
Keep these factors in mind when choosing a credit card. The right choice will help you improve your finances over time and allow you to have a long-term business that has the funds it needs at a moment’s notice.
What is your opinion about getting a business credit card when having bad credit? Let me know in the comments below!
Further reading on AdamEnfroy.com: Want to learn more about specific business loans you can go for? Check out my post on the best commercial real estate loans and rates if you’re looking for something commercial.
On the other hand, once your business is up and running, why not consider investing? Here’s a post on peer-to-peer lending sites for investors that might be helpful, considering that you can start investing (and making returns) with very small amounts.
Last Updated on December 8, 2022 by Adam Enfroy