Business credit cards offer small business owners access to a flexible line of credit along with a convenient and safe way to pay for business expenses. Many offer cash back rewards, sign-up bonuses, and other perks. If your credit scores aren’t high you may find it more difficult to qualify — but there may still be options available to you. Here we’ll discuss how to find and qualify for small business credit cards for bad credit.

What Is Considered Bad Credit?

Credit card issuers may use credit scores created by FICO or VantageScore. The information used to calculate the credit score will come from one of the major credit bureaus such as Equifax, Experian or TransUnion. Credit card providers use one of the available scores to determine if you’re eligible, and you can ask which score the lender uses before applying. 

A FICO credit score of 669 or lower is considered “fair” or bad and can make it more of a challenge to qualify for a credit card. A VantageScore of 600 or lower is considered “fair” or bad credit. It’s usually easier to qualify for a credit card when you have scores in the “good” or “excellent” range. We explore your top choices for the best business credit cards for bad credit below.

Best Credit Cards for Limited or Fair/Good Credit

If your credit scores are in the fair to good range, or if you haven’t established credit, these cards may be worth considering.

Capital One Spark Classic for Business

The Capital One Spark Classic for Business is a popular card for those with fair or good credit.

The Capital One Spark Classic for Business may be a good fit for businesses that want to build credit.

Best Business Credit Cards for Bad Credit

The number of business credit cards available if you have bad credit is not large. However, there are some credit cards to consider if your credit scores aren’t strong. Among your options, a secured credit card will often be your best bet.

Secured Business Credit Cards

A secured business credit card is another option for business owners with bad credit. These are much easier to qualify for than unsecured credit cards. A secured card requires a cash deposit to be held as a security deposit. (Typically you’ll get it back when you close the account.) This is a way for credit card companies to minimize the risk of a high risk borrower. Secured cards usually allow borrowers to charge up to the amount of their security deposit, though some will let your balance exceed your credit limit if you manage it responsibly.

Bank of America Business Advantage Unlimited Cash Rewards Secured credit card

The Bank of America Business Advantage Unlimited Cash Rewards Secured credit card is a no annual fee business secured credit card built to help establish and grow business credit. You can earn an unlimited 1.5% cash back on all purchases while building business credit. You must deposit at least $1000 to open an account.

The Bank of America Business Advantage Secured credit card allows cardholders to secure a credit line of at least $1,000. With this card, the amount of your credit line is equal to the amount you deposit. There is no annual fee. 

*All information about the Bank of America Business Advantage Unlimited Cash Rewards Secured credit card has been collected independently by Nav. This card is not currently available through Nav. To see what business credit cards are available, please visit Nav.

First National Bank Business Edition® Secured Visa Card

First National Bank offers a business secured card with a credit limit between $2,000 and $100,000, in multiples of $50. Your security deposit must be 110% of the credit limit that you want, however you will earn interest on the deposit. There is an annual fee of $39.

*All information about the First National Bank Business Edition® Secured Visa® Card credit card has been collected independently by Nav. This card is not currently available through Nav. To see what business credit cards are available, please visit the Nav Credit Card Marketplace.

Union Bank® Business Secured Visa Credit Card

Union Bank offers a secured card for small business owners with a limit of as little as $500 and as much as $25,000. It also has a low APR of 13.99%. Variable. There’s a $30 annual fee for this card. 

*All information about the Union Bank® Business Secured Visa® Credit Card credit card has been collected independently by Nav. This card is not currently available through Nav. To see what business credit cards are available, please visit the Nav Credit Card Marketplace.

Wells Fargo Business Secured Credit Card

You may see references online to this credit card as it was a popular option. However, as of October 2022 it is not available.

Best Personal Secured Cards

While the focus here is on business credit cards, a personal secured credit card may help you build personal credit if used properly. Since good personal credit scores can help when it comes to qualifying for many small business cards, a personal credit card can be an important tool if you’re trying to qualify for better business cards.

With this card, there’s no security deposit so it’s not technically a secured card. Instead your credit limit is based on the money you have in your Zolve Azpire deposit account. You may apply even if you don’t have a credit history in the US. It reports to all three major US credit bureaus.

Citi Secured Mastercard Credit Card

The Citi Secured Mastercard credit card is a no annual fee credit card that can help with building credit when used responsibly. A security deposit (minimum of $200) is required. Once approved, your credit limit will be equal to your security deposit. With Citi’s Flexible Payment Due Dates, you can choose any available due date in the beginning, middle or end of the month, then manage your account 24/7 online, by phone, or in the mobile app. You also get your FICO credit score for free.

*All information about the Citi Secured Mastercard credit card has been collected independently by Nav. This card is not currently available through Nav. To see what business credit cards are available, please visit Nav.

Discover it® Secured Credit Card

The Discover it® Secured Credit Card is a personal card that also offers rewards and could work well for a business owner looking to earn on everyday spending and build credit.

The Discover it® Secured Credit Card doesn’t charge an annual fee and has a robust rewards program and an intro bonus: You can get a 2x cash back match at the end of your first year. 

The rewards program offers:

• 2% cash back on restaurants and gas stations on up to $1,000 per quarter
• 1% cash back on every other purchase

Pay as little as $200 on the deposit to open this secured card.

*All information about the Discover it® Secured Credit Card has been collected independently by Nav. This card is not currently available through Nav. To see what business credit cards are available, please visit Nav.

Do Business Credit Cards Check Personal Credit Scores?

Yes. Even though you use business credit cards for business purposes, most financial institutions look at your personal credit score to determine if you qualify. This often results in a hard inquiry, which shows up on your personal credit report and may temporarily lower your credit score by a few points. 

In addition to establishing personal credit scores, you can also establish business credit scores. This score represents your business as a separate entity and its ability to repay what it owes. We discuss how to establish business credit next.

Most business credit cards do not report activity on your business credit card to consumer credit bureaus but a few do. Here’s how some of the major business credit cards affect your personal credit.

How Do I Establish Business Credit?

Although you likely don’t need an established business credit score to get a small business credit card, having business credit can help your business succeed in many ways. For example, a good business credit score can open business funding opportunities that you couldn’t have accessed without it. It may also allow you to get more agreeable payment terms with your suppliers and vendors, which can make payments less of a hassle for your business. Additionally, if your goal is to work with a Fortune 500 company or a government agency, these institutions will check your business credit to make sure you’re a legitimate business before signing on the dotted line.

The easiest way to establish business credit is to use Nav and choose Business Boost, which comes with an important feature called tradeline reporting. With tradeline reporting, Nav send positive payment information to the major credit bureaus that track businesses. This may help build your business credit with the different bureaus. And because life happens, Nav never sends negative information like late or missed payments. 

Many business credit card accounts also report to business credit bureaus, but this feature is not universal. So it’s not guaranteed that using a business credit card will automatically establish business credit. If possible, choose a credit card that will report to the major business credit bureaus.

Find a list of vendors that offer tradeline reporting for their customers here.

What If I’m Not Approved for a Business Credit Card?

If you get denied for an unsecured business credit card, you still have options. It’s typically a good idea to wait around six month before applying for a new credit card to make sure your credit score doesn’t take too many hits from the hard inquiries. In the meantime, you can take steps to build up your credit score. And when you’re ready to apply again, you can look into a different credit card that accepts applicants with your credit score range. Or you can apply for a secured business credit card that allows you to put down a refundable security deposit, and the deposit acts as your credit limit. Secured cards are typically easier to qualify for than unsecured credit cards.

Don’t waste time scrolling through countless credit cards. Instead, find the best credit card options for your business instantly with Nav.

Alternatives to Business Credit Cards for Bad Credit

If you get a business credit card, try to use it for business purchases so you can separate your business and personal finances. This will make it easier to keep track of your business spending for tax purposes.

Many traditional small business loans (such as bank loans or SBA loans) require good credit, but there are some types of business financing that may be more credit flexible or may not check personal credit at all. Lenders that make business loans for bad credit tend to be heavily focused on other factors such as revenues or time in business. They include:

• Vendor accounts
• Online loans
• Business cash advances
• Crowdfunding

For the above types of financing, revenues may be more important than credit history. A business bank account may be required so make sure you open and use one as soon as possible.

FAQs Business Credit Cards for Bad Credit

• Can I get a business credit card with bad personal credit?

  If your credit scores are low it will be harder to qualify for a business credit card. You may need to start with a card with a smaller credit limit, and in some cases you may need to work on your personal credit scores before you can qualify. If your credit scores are low, you may need to stick with personal cards while you rebuild your credit.

• Does opening a business credit card affect your credit score?

  Any hard inquiry into your personal credit can lower your credit score by a few points. However, the effects are typically short term and shouldn’t cause your score to decrease for more than a few months. However, opening several new credit accounts (like credit cards, loans, or lines of credit) within a short period can affect your credit score. So it’s best to try to space out your new accounts as much as you can.

• How to choose the right business credit card with bad credit?

  Because your choices will be more limited if your credit scores are low, you will primarily look for a business credit card that will allow you to establish a payment history. Rewards rates and perks are typically less important than simply finding a card for which you can qualify. Some small business credit cards report to personal credit, some card issuers report to business credit bureaus, and some report to both. On-time payments and low balances can help build good personal and business credit scores.

• What does it take to qualify for a business credit card with bad credit?

  There are two primary qualifications most business credit card issuers consider: credit and income or revenue.
  
  Credit: In most cases, a personal credit check will be required— even for business credit cards. It’s a good idea to check your credit reports and scores from the major consumer credit bureaus— Equifax, Experian and TransUnion— so you understand your creditworthiness. (There are more than 138 places to get your credit score for free.) This can also help you identify problem areas in your credit history where your credit can be improved. For example, high debt utilization is often a problem for consumers and business owners. If your debt ratio is too high, it could be weighing on your scores, and you’ll want to focus on paying down those balances.
  In addition to minimum credit score requirements, some issuers will not approve your application if you have too many recent inquiries, high balances on other credit cards or no credit history.
  
  Income: Issuers will often have minimum income requirements (and they may not disclose those) but the good news is that most will allow you to include income from all sources and not just the business. That means these cards may be available to startups as well as more established businesses.

• How do I apply for a business credit card with bad credit?

  Unless you get appealing credit card offers in the mail, you’ll most likely shop for a credit card online. Most issuers make it easy to apply online and get a decision very quickly. You’ll want to have the following information handy when you apply:
  
  -Your Social Security Number
  -Employer Identification Number (EIN) or Taxpayer Identification Number (TIN)
  -Business information: address and phone number
  
  Note while a few issuers require you to have a formal business entity (such as an LLC or S corp) to apply for most business credit cards, in most cases these cards are also available to sole proprietors, independent contractors and freelancers.
  
  If you get rejected for a card you want, you may want to reach out to the card issuer. Some have a reconsideration department that will review your application to determine whether there are other factors that may help you qualify.

• Can I use my EIN to get a credit card?

  If you have an employer identification number (EIN) you may need to supply it when you apply for a small-business credit card. But you will almost always need provide a Social Security number as well.

• How to get a business credit card with bad credit?

  The most important thing to keep in mind when you apply is to narrow your search to cards for which you are most likely to qualify. Applying for multiple cards in a short period of time can result in multiple credit inquiries on your report. These can impact your credit scores, so be careful to apply for cards for which you’re more likely to get.

• Do business credit cards verify business income?

  Most business credit card issuers don’t verify business or personal income though they may use technology to identify potentially fraudulent applications. Business cards without personal guarantees or personal credit checks may require proof of business income in the form of business bank statements to ensure the business make enough money to repay the debt.
  

• How long does it take to get a business credit card?

  
  If you apply for a business credit card online, you may get a decision right away. Sometimes the application goes into review and it can take several days to a couple of weeks to get approved or declined. Once you are approved, it can take a couple of weeks to get the physical card. Some issuers will allow you to use the card number right away through the issuer’s app or by issuing a virtual card number.