Getting a business credit card with bad credit may be challenging but it’s not impossible. There are several business credit cards for bad credit you may qualify for that will help you steadily build credit.
Getting a credit card can make it easier to charge things you need to keep your business running with the option to pay them off over time. You might even be able to earn some valuable rewards in the process. But what if you have bad credit or no credit at all?
The good news: You’re not shut out of getting approved for a business credit card. But you may need to spend some time researching your options to find one you can qualify for. To make that easier, we’ve rounded up some of the best business credit cards for bad credit to consider now.
Capital One Spark 1% Classic: Best for average credit
Why we picked it: The Capital One Spark 1% Classic Card* is designed for people who have fair credit scores and want to work their way up to the good or excellent credit score range. This card allows you to build credit while earning unlimited 1 percent cash back on purchases. There are no rewards tiers or rotating bonus categories to worry about and rewards don’t expire as long as your account is open and in good standing. In addition to unlimited cash back rewards, you’ll pay no annual fee, and you can take advantage of helpful features, such as year-end summaries and downloadable purchase records.
- 5 percent cash back on hotels and car rentals booked through Capital One Travel
- No annual fee
- No limit or expiration on cash you can earn
- High APR (26.99 percent variable)
- Cannot transfer rewards to other loyalty programs
- 10-minute application process
Who should apply: If you’re a business owner with a less-than-stellar credit history looking for a card that will help you build credit, plus give you some rewards and extra perks, this might be a good fit. Business owners who’d also like to earn cash back on a few of their travel purchases may also enjoy this card.
Who should skip: If you typically transfer your rewards to other loyalty programs, another card could be a better choice for you. Anyone who thinks the flat 1 percent is too low for their tastes should keep shopping.
Secured Sable One Credit Card: Best for upgrading to unsecured card
Why we picked it: The Secured Sable ONE Credit Card offers 2 percent cash back at select merchants (Amazon, Uber, Uber Eats, Whole Foods, Netflix, Spotify and Hulu), then 1 percent unlimited cash back. On all other purchases, you earn 1 percent cash back.
You’ll also get perks like car rental coverage and cellphone insurance, which typically don’t come with secured cards. You don’t need a credit history or a credit check to apply — or even a Social Security number if you’re not a U.S. citizen. Bonus: In as few as four months you can graduate to an unsecured card.
- Dollar-for-dollar match on cash back earned in first year
- Set credit limit with deposit
- No annual fee
- No minimum security deposit
- No intro APR offer
Who should apply: For business owners with limited or bad credit, this card might be a good one to consider since its credit requirements aren’t very strict. Anyone who is in the U.S. for business may also want to apply for this one to steadily build credit since they have no credit history in the country.
Who should skip: If you’re looking for broad reward categories, the Sable Secured might not work for you.
Brex Card: Best for good cash flow
Why we picked it: To properly compare with other credit cards, we’ll discuss the monthly version of the Brex 30 Card, which only requires an Employer Identification Number and at least $50,000, from investors in a U.S.-based bank account. Thankfully, your personal credit score will never be affected, and the company looks at your spending habits and regular cash flow to determine your credit limit.
Essentially, if you have a bad credit score, from previous personal or professional hiccups in your business, but your cash flow remains healthy, you could qualify for a good credit limit.
- 7X points on rideshare, 3X points on restaurants and 2X points on software
- Built-in expense tracking software
- Integrate with business tools like QuickBooks, Slack and more
- Partner perks (for example: 50 percent off shipping with UPS)
- Need a lot in the bank to qualify
Who should apply: If your business has solid capital but a bad credit score, you may qualify for the Brex Card. It’s also a good card for new business owners who aren’t U.S. citizens since the application doesn’t require a Social Security Number.
Who should skip: If your company has little cash in the bank, you should probably opt for a different card. Also, if your business doesn’t spend much in the Brex Card’s bonus categories (rideshare services, travel, restaurants, Apple products and software subscriptions), you should choose a higher flat-rate card.
Business Advantage Unlimited Cash Rewards Secured: Best for no credit history
Why we picked it: The Business Advantage Unlimited Cash Rewards Secured credit card* determines your credit limit based on your security deposit. This card’s minimum deposit is a bit higher at $1,000, but in return you’ll earn a decent 1.5 percent cash back on all purchases, for no annual fee. If you show healthy credit habits over time, you’ll be upgraded to the unsecured version (which offers a high rewards potential). Though it lacks fancy bells and whistles, it doesn’t appear to require a specific credit score, so it’s great for business credit beginners.
- Unlimited 1.5 percent cash back on all purchases
- No expiration on rewards if account stays open
- No annual fee
- Limited redemption options
- High APR (23.74 percent variable)
Who should apply: Cardholders who have little to no credit history Will appreciate this card’s straightforward structure. Business owners who want to start off with a strong relationship with a major issuer should also apply, since you can get upgraded from the Business Advantage Secured card.
Who should skip: Anyone with a higher credit score than poor — or none at all — may qualify for a slightly better card.
Compare business cards for bad credit
Here’s a comparison of the best business credit cards for bad credit:
|Card name||Rewards rate||Regular APR|
|Capital One Spark 1% Classic Card||26.99% variable|
|Secured Sable ONE Credit Card||11.74% variable|
|Brex 30 Card||N/A (charge card)|
|Business Advantage Unlimited Cash Rewards Secured credit card||23.74% variable|
How to choose a business card for bad credit
If you’re in the market for a business credit card and your credit isn’t good, there are a few things to think over while shopping for one:
- Should you get a business credit card? In short, yes. While you could use a personal credit card to fund your business, that can get tricky when deducting expenses. If all your personal and business spending is combined on the same card, that could also complicate tax filing. So, keeping your business and personal spending separate can solve that problem.
- Does the card’s rewards program fit your spending? Business credit cards can reward you for the things you spend money on the most for your business, so if you pick the right one you should easily rack up rewards. Of course, you should only spend on things you’d normally buy so that you don’t pick up overspend.
- Do you know all your card’s fees? Be sure to read the fine print. You should know what you’ll pay for the regular APR and fees as well as what rewards or benefits you’ll get. That way, if you ever miss a payment, you’ll know exactly what penalty APR or late payment fee you’ll be charged .
- Should you get a secured credit card? Secured cards are good for helping you build up a good credit history of consistent, on-time payments. Their minimal credit limits, lack of annual fees and relatively low rewards potential keep focused on improving your credit score, rather than encouraging you to spend exorbitantly to earn cash back.
Bad credit doesn’t have to prevent you from opening a business credit card account. The business credit cards we’ve included here are designed to offer the best combination of features and benefits, even if you have a poor credit score.
Remember: When you use it responsibly, a business credit card could help you improve your score over time. That can make it easier to qualify for premium business cards, which may offer better rewards or perks.
*All information about the Business Advantage Unlimited Cash Rewards Secured credit card and Capital One Spark 1% Classic Card has been collected independently CreditCards.com and has not been reviewed or approved by the issuer.