With a business credit card, you can keep personal and business expenses separate and offer attractive perks and perks. Whether your business has a team of employees or a side business that works for yourself, business credit cards can offer valuable benefits.
However, most business credit cards require at least a good credit score (670 or above). If your credit score needs some work, qualifying for this type of card can be difficult.
Luckily, there are still options. Compare low credit or fair business credit cards and analyze each card’s approval requirements, benefits and potential drawbacks to help you make an informed choice. (See Methodology for more information on how to choose the best card.)
Below are our top picks for business credit cards that can accept even less-than-ideal credit.
best business credit cards for bad credit
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winner
Capital One Spark Classic
Information regarding Capital One Spark Classic is independently collected by Select and has not been reviewed or provided by the issuer prior to publication.
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reward
Get unlimited 5% cash back on hotels and car rentals booked with Capital One Travel and 1% cash back on all other purchases
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welcome bonus
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Annual fee
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Introduction APR
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Normal APR
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Balance transfer fee
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foreign transaction fee
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need credit
Strong Points
- No annual fee
- free employee card
- Average credit may qualify
- Anytime cashback
- No fees for purchases outside the US
Cons
- No welcome bonus
- Referrals for purchases or balance transfers 0% No financing offers
Who is this for? Capital One Spark Classic for Business is an excellent choice for business owners with fair credit. It is usually difficult to get approved for unsecured business credit cards with low credit ratings. Capital One Spark Classic is a rare exception as it requires no deposit and has no annual fee.
In addition to offering a simple cashback program, the card offers useful perks for business owners such as a free employee card, no foreign transaction fees, a year-end summary, and purchase records that can be downloaded in multiple formats. .
runner up
Bank of America Business Advantage Unlimited Cash Rewards Secure Credit Card
Information regarding the Bank of America Business Advantage Unlimited Cash Rewards Secured Card is collected independently by Select and is not verified or provided by the card issuer prior to issuance.
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reward
Get unlimited 1.5% cashback on all purchases
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welcome bonus
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Annual fee
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Introduction APR
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Normal APR
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Balance transfer fee
4% of each transaction (minimum $0)
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foreign transaction fee
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need credit
Strong Points
- No annual fee
- Those with bad credit may be eligible
- Opportunity to Convert to Unsecured Cards for Eligible Cardholders
- Flexible redemption options
Cons
- $1,000 minimum deposit
- No welcome bonus
- Referrals for purchases or balance transfers 0% No financing offers
Who is this for? The Bank of America Business Advantage Unlimited Cash Rewards Secured Credit Card is a solid option for business owners with low credit ratings who are willing to keep a deposit to secure a line of credit.
The minimum deposit for Business Advantage Unlimited Cash Rewards Secured is $1,000. If approved, it will also be your credit limit. After that, if you continue to improve your credit score, Bank of America may upgrade you to an unsecured card.
Not only does this card offer above-average rewards, but it also offers benefits like cashflow management tools, the ability to schedule automatic payments and transfers, and the ability to download transactions to QuickBooks. Plus, if you have a Business Advantage 360 account with Bank of America, you get free access to your Dun & Bradstreet Business Credit Score.
Best 0% APR Offer
Union Bank® Business Secured Visa® credit card
Information regarding the Union Bank® Business Secured Visa® credit card is collected independently by Select and is not verified or provided by the card issuer prior to issuance.
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reward
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welcome bonus
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Annual fee
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Introduction APR
0% purchases and balance transfers for the first 6 billing cycles, then floating rate purchase APRs
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Normal APR
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Balance transfer fee
$10 or 5% of each balance transfer amount, whichever is greater
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foreign transaction fee
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need credit
Strong Points
- No annual fee
- Those with bad credit may be eligible
- 0% APR offer for purchases and balance transfers
Cons
- No welcome bonus
- No reward
Who is this for? The Union Bank® Business Secured Visa® Credit Card is ideal for business owners who plan to maintain a balance on a business credit card but do not have ideal credit.
Low credit card credit cards generally do not offer an introductory period of 0% APR. The exception is the Union Bank Secured Visa. Cardholders can make interest-free purchases for the first 6 billing cycles and then take advantage of her APR at a variable rate.
Additionally, the card offers an initial APR of 0% on balance transfer for the first 6 billing cycles, after which a variable rate balance transfer APR will commence.
A Union Bank Business Secured Visa requires a minimum security deposit of $500. This will be your credit limit. Unfortunately, the Union Bank Business Secured Visa does not offer any rewards or business benefits.
Great for building personal trust
Discover it® Secure Credit Card
On Discover’s secure site
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reward
Earn 2% cash back on purchases totaling up to $1,000 each quarter at gas stations and restaurants. Plus, automatically earn unlimited 1% cashback on all other purchases.
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welcome bonus
Discover equals all cashback earned at the end of the first year
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Annual fee
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Introduction APR
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Normal APR
26.74% variable; *Prices as of December 15, 2022
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Balance transfer fee
3% initial balance transfer fee, up to 5% fee for future balance transfers (see conditions)*
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foreign transaction fee
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need credit
Strong Points
- cashback program
- generous welcome bonus
- After 7 months of account opening, Discover will automatically check your credit card account to see if it can be transferred to an unsecured line of credit and your deposit refunded.
Cons
- Cashback program limits earnings: 2% cashback on purchases up to $1,000 total quarterly at gas stations and restaurants, then 1% cashback thereafter
- Low credit line prevents cardholders from charging big ticket items and many expenses
Who is this for? The Discover it® Secured Credit Card is perfect for business owners looking to build personal credit.
Card issuers may check your credit information when you apply for a business credit card, so improving your personal credit score can help you get a more favorable business card. Discover it Secured is one of the best cards for building credit available on the market. This is thanks to its rewarding cashback program and additional perks like no foreign transaction fees.
Discover makes it easy to transition to unsecured credit facilities. Seven months after opening your account, Discover will automatically verify your account and, if eligible, upgrade you to a non-secure card and refund your deposit.
Check our offers to find the best credit card for you credit card market or get personalized offers Cardmatch™.
Frequently Asked Questions
Do business credit cards prove income?
Credit card issuers may require proof of earnings or income, such as receipts, payslips, invoices, or other documentation. Therefore, it is important that you provide accurate and verifiable information when applying for a credit card. Additionally, do not report personal income unless specifically requested by the issuer or business related.
Do banks verify my personal credit information on corporate credit cards?
Credit card issuers typically draw personal credit when you apply for a business credit card. However, there are some cards like: OpenSky® Secured Visa® credit card. Credit is not withdrawn upon application.
How do I know if my business is eligible for credit cards?
Most businesses, from sole proprietors to corporations, can qualify for a business credit card. You do not need to register or incorporate a business to apply. However, an independent, unregistered, or unincorporated business owner is also personally responsible for any business his credit card debt incurred.
Do not miss it: How to check your business credit score for free
How long does it take to get a corporate credit card?
The business credit card approval process can take less than a minute or up to two weeks, depending on the issuer. Once approved, you will receive your new business credit card within 7-10 business days.
Conclusion
A low credit score can make it difficult to qualify for a business credit card.
Before you apply, read the card details to make sure it fits your business needs. For example, most low credit cards require a security deposit. Evaluate if it makes sense to drop your budget by one, and remember that you should use less than his 30% of your available credits.In this way, you Low credit utilization and avoid credit damage.
Continuing to use your credit card responsibly can improve your credit score. With time and patience, you can take advantage of better value business credit cards such as American Express’ Ink Business Preferred® credit card and The Blue Business® Plus credit card.
our methodology
To determine which business credit cards are best for business owners with low credit, Select analyzed the most popular credit cards available to low or average US business owners. We compared each card for a variety of features, including fees, minimum and maximum deposits, APR, perks and perks for business owners, additional approval requirements, and customer reviews when available. We also looked at additional perks, the application process, and the ease of redeeming rewards.
The main criteria for our ranking were compensation rates and access to small business owners with low credit ratings. The less cost a card requires and the more rewards it offers to offset it, the higher it ranks on the list.
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Editor’s Note: The opinions, analyses, reviews or recommendations expressed in this article are those of Select’s editorial staff only and have not been reviewed, approved or otherwise endorsed by any third party.