Getting a credit card can make it easier to collect the funds you need to keep your business running, with the ability to pay it off over time. You may even be able to earn valuable rewards in the process.
But what if you have bad credit or no credit at all?
The good news is that you are not barred from getting approved for a business credit card. But you may have to spend some time researching credit card options to find one you can qualify for.
To make it easier, we’ve rounded up some of the best bad credit business credit cards to consider now.
Capital One Spark Classic for Business: Best for Medium Loan
Why we chose it: Capital One® Spark® Classic for Business is designed for people who have a satisfactory credit history and want to move up to the level of good or excellent credit history. This card allows you to accumulate credit while receiving an unlimited cash back of 1% on purchases. There are no reward levels 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, you won’t pay an annual fee and enjoy useful features like year-end summaries and downloadable purchase reports.
pros
- No annual fee
- Can help build credit
- There are no limits on the cash you can earn and it doesn’t expire.
Minuses
- High annual interest rate
- Unable to transfer rewards to other loyalty programs
Who should apply: If you’re a business owner with a less-than-stellar credit history and are looking for a card that will help you build credit, as well as give you some rewards and extra perks, this might be the way to go.
Who should miss: If you usually transfer your rewards to other loyalty programs, another card may be suitable for you.
Wells Fargo Business Secured: The Best Option for Bad Credit
Why we chose it: The Wells Fargo Business Secured Card offers lines of credit ranging from $500 to $25,000 for business owners with limited or bad credit. Once your account has been approved, you can use your card to receive a choice of 1.5% cash back on qualifying purchases or 1 point per dollar spent with no annual fees. If you choose points, you can earn 1,000 bonus points per billing cycle when you make purchases of $1,000.
Since this is a secured credit card, you will need to offer a cash deposit in order to open an account. However, this deposit may be refunded if you qualify for an unsecured Wells Fargo credit card under responsible use. To apply for this card, you will need a Wells Fargo checking or savings account. This is because Wells Fargo uses funds in your account to secure your card.
pros
- No fees for foreign transactions
- No annual fee
- Credit line from $500 to $25,000
- 1.5 cashback for purchases
Minuses
- High fees for cash withdrawals and transfers
- No welcome bonus
- Must have a Wells Fargo checking or savings account
Who should apply: This is probably a good option for international business owners because it doesn’t charge foreign transaction fees. Plus, it offers a simple rewards program and big banking features like auto pay and overdraft protection.
Who should miss: If you don’t need a Wells Fargo checking or savings account, you should consider another option.
Sable One Secure Credit Card: Best Without Credit History
Why we chose it: The Sable One Secure Credit Card offers 2% cash back on select stores (Amazon, Uber, Uber Eats, Whole Foods, Netflix, Spotify and more) up to $20,000 per year and then 1% on unlimited cash back. You’ll also get perks like car rental coverage and mobile phone insurance that don’t usually come with secure cards. You don’t need a credit history or credit check to apply, or even a social security number if you’re not a US citizen. Bonus: In just four months, you can upgrade to an unsecured card.
pros
- Quickly builds a credit history
- No annual fee
- No minimum deposit
- No credit history required
Minuses
Who should apply: For business owners with limited or bad credit, this card may be a good one to consider as its credit requirements are not very strict.
Who should miss: If you’re looking for broad categories of rewards, Sable Secured might not be for you.
Compare the best cards for businesses with bad credit
Here is a comparison of the best credit cards for businesses with bad credit:
| Map name | Interest rate | Best for |
|---|---|---|
| Capital One Spark Classic for Business |
|
Business owners who need to rebuild their credit history and who prefer to use the card without an annual fee |
| Wells Fargo Protected Business* |
|
Business owners who want to earn cash rewards by building a positive credit history |
| Sable One Secure Credit Card |
|
Business owners who are interested in applying for a credit card without a credit check |
How to choose a business card for bad credit
If you are looking for a business credit card but have a bad credit history, there are a few things you need to pay attention to:
- Consider a card that offers the best custom features to suit your company’s needs.
- Choose a card with a deposit you can afford.
- Look for a card with no or low annual fees (or other fees).
- Make sure the rewards program of the card matches your expenses.
- Make sure the card reports to all three credit bureaus.
Should you get a business credit card for bad credit?
Opening a business credit card for bad credit can make sense for several reasons. First, you might want to consider this if you want to separate business and personal expenses.
While you can use a personal credit card to fund your business, it can be tricky when it comes to deducting expenses. If all your personal and business expenses are lumped together on one card, it can make filing your tax return more difficult. Thus, having two cards, one business and one personal, can solve this problem.
You may also find it helpful to have a separate business credit card if you are interested in earning rewards for your purchases.
Business credit cards can reward you for the things you spend the most money on for your business, while personal cards can reward you for everyday expenses. If you want to earn cashback, miles, or points for things like office supplies, business trips, or dining out with clients, a business credit card might be a better fit.
When weighing a business credit card for bad credit, read the fine print. Know how much you will pay for APR and fees, and what rewards or benefits you will receive. And think about how you can use any rewards you might be able to earn. This can help you decide if opening a business credit card is the right move, and if so, which one to choose based on your spending habits.
bottom line
A bad credit history should not prevent you from opening a business credit card account. The business credit cards we have included here are designed to offer the best combination of features and benefits, even if you have a bad credit score. Remember: When used responsibly, a business credit card can help you improve your score over time. This can make it easier to get premium business cards that may offer better rewards or benefits.
*All information about the Capital One Spark Classic for Business and Wells Fargo Business Secured cards has been collected independently by CreditCards.com and has not been verified or approved by the issuer.
Editorial disclaimer
The editorial content on this page is based solely on the objective judgment of our contributors and is not based on advertising. It was not provided or ordered by credit card issuers. However, we may receive compensation when you click on links to our partners’ products.
