Don’t be discouraged if your credit rating is low. Bad credit can be repaired. One of the best ways to do that is with a business credit card.
Crazy, right? By borrowing money with a credit card, you can build credit for your business. But it can work that way for you. Just choose the right card with low credit and make the payment on time.
What is bad or bad personal credit?
Low creditworthiness of an individual can easily be defined numerically. If your credit rating is 579 or below, you have poor or bad credit according to your personal credit score.
how does that happen? It can happen if you miss a payment or are late paying a loan or utility bill. It can also occur if your personal credit card has a credit limit and your spending exceeds it.
How do I qualify for a business credit card with a poor personal credit score?
Anyone who receives an email knows that credit cards are competing for your business. Business credit card issuers also compete for business credit cards, even if they have poor credit ratings.
Credit card issuers generally condition the use of their cards in two ways:
- Secure Credit Cards – Secure credit cards require you to pay a security deposit. In most cases, the credit limit will be 110% of your deposit. Your business protected credit card is linked to your bank account. A deposit and bank account link is your personal guarantee that you can pay off your card.
- Full Payment of Balance – Full payment is required for each monthly billing period. You may need to link your card to your business or savings account. These are unsecured credit cards that do not require a deposit. Failure to meet monthly payoffs will result in the loss of your card and further points from your credit history.
How do you choose the best business credit card for bad credit?
Choosing the best business credit card is like having high or low credit. You need to weigh many factors to choose the best small business credit card for you. Business cards can help you establish your business credibility and improve your business credit score.
- cash back – Simply put “cash back” into your credit card deposit amount, this will increase your credit limit. You may be able to get your unlimited cash rewards back.
- reward – Earning Rewards Points can help you “save” on certain purchases, especially if your credit card issuer has a partner business.
- Specific use – You may use your card just to buy gas, especially if you are a small business owner who needs to do pickup and delivery.
- April – Many bad debt cards start at 0% APR, but jump to 30% or more after 6 months. Read the fine print and mark your calendar.
- credit limit – Some bad credit cards have a credit limit based on the deposit amount. Others allow you to request different credit limits through the application process.
- Annual fee – Some bad credit cards have no annual fee. Some charge less than $50 but either have a lower APR or make up for it with better rewards or cashback.
best business credit cards for bad credit
We’ve rounded up our best picks for business owners with low credit scores. Using your card to make payments means building credit.
1. First National Bank Business Edition Secured VISA
This First National Bank VISA card includes standard features you’d get with a business credit card, including a credit limit of 110% of your deposit. Get 0% APR for 1 year before jumping to 23.99%. The annual fee is $39 with 1.5% cash back.
You may already know Stripe, which small business owners often use to process payments. Getting this card for bad credit requires a Stripe account and there is no credit check. The good news is that you can get your card instantly. This is the perfect business credit card for startups. Get branded logo cards, 1.5% cash rewards back and discounts for partner businesses.
Chime is a secure VISA card that can be obtained without a credit check. To get a Chime card, you’ll need to set up automatic transfers to your Chime account. Your account will always reconcile as you make deposits and payments. Once logged in, you can see the current tally of the amount available.
4. Discover IT
If you have an outstanding balance on another credit card, the Discover IT card offers an APR of 10.99% on the amount transferred for 6 months (27% after 6 months). There is no annual membership fee. This is a secure credit card and the credit amount is 110% of the security deposit. Get 5% cash back on gas purchases.
5. My Premier Bankcard Mastercard
The Premier Credit Card is an unsecured business credit card. The usage limit is set at the time of application, but as long as you do not exceed the set limit and pay within the deadline, it will gradually increase. The APR range is 19-36%.
6. Progress Credit VISA/Mastercard
Yes, the Progress credit card does both. VISA is an unsecured corporate credit card with a credit limit set at the time of application. A Mastercard is a secured credit card with a credit limit set by a security deposit.
why do you do this? Both VISA and Mastercard report to corporate credit bureaus, making this one of the top business credit cards for bad credit and getting your credit score repaired quickly.
Should business owners get a secure credit card with a low credit score?
Every business owner needs business cards especially for business purchases. A secure card may seem restrictive, but a secure card helps you protect your credit limit.
Proper use of secure credit cards can improve your credit score. Most secure business credit cards offer cashback that can be applied as a statement credit.
Start with a security deposit, get a secure business credit card with secure credit limits, make recurring payments, build credit and improve your credit score. Payments are reported to three major credit bureaus.
Can I use my EIN to apply for a credit card?
Yes, you can do this with most business credit cards. By applying this way, you can keep your personal and business expenses separate as you work to rebuild your credit.
What credit score do you need for your business card?
With a score of 579, you can get a small business credit card with low or bad credit. With that score, you can get a secured or unsecured card and start improving your credit health as reported by consumer credit bureaus.
What are the best business credit cards with low credit?
Your choice as a business owner depends on your needs. If you don’t have enough money for the deposit, we recommend using an unsecured card. You may prefer a card that doesn’t require a personal credit check.
The key is getting a business credit card. You can earn credibility by using it wisely. The higher your credit score, the more likely you are to get a business loan, and the more likely you are to get a better credit card later.
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