For many companies, having a business card seems essential. It makes paying for materials, office supplies, and other operational expenses much easier. But if you have poor credit, you may wonder if you can even get access to a business card. The short answer is yes!
There are plenty of top business credit cards for business owners with no or poor credit. You just need to know where to look and how to find them.
How to Find the Right Business Card With Bad Credit
If you want to find a business card that accepts you with bad credit or no credit, it is as simple as knowing where to look.
Some Great Suggestions
We have two great suggestions for top business credit cards for those with poor credit or no credit. These are Capital One Spark Classic for Business and the Wells Fargo Business Secured Credit Card.
Capital One Spark Classic for Business has a 26.99% variable APR interest rate and no fees. Just keep in mind that it requires a credit score of at least 580. If your credit score is lower than this, consider the second option, the Wells Fargo Business Secured Credit Card. There is also no annual fee, and because it is secured, you can get it with nearly any credit score. However, you will have to deposit into the account to use the card.
Be Prepared for Higher Fees or Interest Rates
There is one important caveat. As with personal credit cards, business credit cards are more likely to have higher interest rates or annual fees if you have poor credit. So, don’t be surprised.
Alternatively, you can look for a secured credit card for your business. These function like any other secured credit card, requiring you to pay a deposit upfront. As a bonus, a secured card is an excellent way to build your business credit.
How to Build Your Credit
As mentioned, a secured credit card can help you build your business credit, but there are also other things you can do. Just establishing your EIN will help boost your business credit score. This is also important as it separates your business and personal finances.
You can also try applying for a credit line with your vendor if you can’t find a credit card yet. This is an alternative with a similar result, and it helps you build your credit. You could also try getting a small loan for working capital.
Finally, be sure to regularly check your business credit report, just like you would your personal one. This lets you ensure there are no errors that could be bringing the score down lower than it should be.
Just because you have bad credit or no credit, that doesn’t mean that you won’t have access to any top business credit cards. While your options will be limited, there are still some great choices. The only caveat is that you’ll have a higher interest rate or need to use a secured card. You also don’t want to rule out alternatives, such as a line of credit with your vendor or a working capital loan.