Best Business Credit Cards for Bad Credit
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Business owners with bad personal credit have two primary options for business credit cards: secured cards and corporate cards. For most small businesses, a secured card will be your best bet.
Secured business cards require a cash security deposit, but are relatively easy to get even if your credit score is low. Corporate cards typically don't require a credit check, but you need strong annual revenue and a sizable bank balance to qualify. They’re also only available to incorporated businesses.
Want to establish business credit? Open a secured business credit card, like the Bank of America® Business Advantage Unlimited Cash Rewards Mastercard® Secured credit card. Focused on building your personal credit score? Opt for a secured personal card.
Best business credit cards for bad credit
Why trust NerdWallet
A secured business credit card is the best way to establish and build your business credit if you can’t qualify for a traditional business card. Prioritize on-time payments and aim to keep credit utilization below 30% to have a positive impact on your business credit score.
Bank of America® Business Advantage Unlimited Cash Rewards Mastercard® Secured credit card
This card has not been rated by NerdWallet.
This card is our pick for the best secured business credit card. It has no annual fee and earns 1.5% cash back on all purchases. You need a security deposit of at least $1,000, which is equal to your credit limit and subject to credit approval. Bank of America will periodically review your account and may upgrade you to an unsecured card if and when you qualify.
No annual fee.
Earns cash-back rewards.
Can help establish, build business credit.
May be upgraded to an unsecured card if credit improves.
Free access to Dun & Bradstreet business credit scores in your online banking account.
Minimum security deposit of $1,000.
Does not help grow personal credit score.
Hello Alice Small Business Secured Mastercard®
This card has not been rated by NerdWallet.
This secured business card has no annual fee and a low minimum deposit ($500). You'll earn points on purchases, which can be redeemed for items like gift cards, statement credits and Hello Alice workshops. This card also has an intro APR offer and a small welcome bonus for new cardholders (terms apply). Hello Alice reports payment activity to Dun & Bradstreet.
No annual fee and low minimum deposit.
Can help establish, build business credit.
Welcome offer and intro APR period (purchases and balance transfers).
Deposit refunded and/or credit limit increased with good payment history. Terms apply.
Maximum deposit/credit limit of $5,000.
Does not help grow personal credit score.
Other secured business credit cards
Very few national banks offer secured business cards — Bank of America is currently the only one — but many local and regional banks and credit unions do. You may need to live and/or operate a business in the bank's service area to apply. Most credit unions also have membership requirements.
Here are some worth considering. Check with the bank before applying to confirm card details and eligibility.
Suncoast Credit Union Business Secured Visa: Businesses located in the Florida-based credit union's 40-county service area can become members and apply. This card requires a minimum credit score of 560.
Valley Bank Visa® Secured Business Credit Card: Service area includes Alabama, California, Florida, New Jersey and New York.
First National Bank of Omaha Business Edition Secured Mastercard Credit Card: Service area includes parts of Colorado, Illinois, Iowa, Kansas, Nebraska, South Dakota, Texas and Wyoming. There must be an FNBO branch in your ZIP code to apply.
Pacific Premier Bank Business Edition Secured Visa Card: Service area includes Arizona, California, Nebraska, Oregon and Washington.
Alternatives to business credit cards for bad credit
Business owners with less-than-perfect personal credit have limited options for business credit cards and business funding. But there are a few options that exist beyond secured and corporate cards.
If your personal credit score not bad, but not great ...
The following business credit cards are available to business owners with fair or average credit (typically a FICO score between 630 and 689).
Capital on Tap Business Credit Card
Capital on Tap Business Credit Card
1.5%
Capital One® Spark® Classic for Business
If you don’t want to put down a deposit, or need more capital than a secured card allows ...
Bad-credit business loans may be an option. For example, Fundbox’s business line of credit goes up to $150,000, and business owners with a credit score of at least 600 and six months in business can qualify. If you’re a startup with bad credit, an option like invoice financing could make sense depending on your business model.
A personal loan for bad credit may also be an option. While NerdWallet recommends separating your personal and business finances, these products can offer short-term financing and the opportunity to strengthen your personal credit for future business borrowing needs.
How do you apply for a business credit card with bad credit?
Know your credit score. Applying for a bunch of credit cards in a short time frame can hurt your credit score. It's also a red flag to issuers. So before you apply for a business credit card, check your personal credit score, then focus on cards with the best chance of approval. If your score is below 630, that will be secured cards (unless your company has excellent financials). If your score is between 630 and 690, fair credit business cards like the Capital One® Spark® Classic for Business may be in play.
Research fees, deposit limits and other requirements. Bad credit business cards are not one-size-fits-all. Some have annual fees. Others have low maximum deposit limits, and therefore low credit limits. And some, like corporate cards, have high capital requirements. Compare terms and individual features of various cards to determine the best fit for your company.
Apply and make your deposit. You can apply for most bad credit business cards online and make your deposit (if needed) via ACH transfer. Corporate cards don't require a deposit, but you will need to connect your business bank account and provide financial statements to prove things like revenue and time in business.
Taking strategic steps — like paying existing cards down to lower your credit utilization or asking a friend or relative to add you to their accounts as an authorized user — can help you build personal credit quickly and expand your business credit card options.
Information for the Capital One® Spark® Classic for Business has been collected by NerdWallet and has not been reviewed by or provided by Capital One.
Methodology
NerdWallet's Credit Cards team selects the best credit cards for small business based on overall consumer value, as evidenced by star ratings, as well as their suitability for specific kinds of small-business operators. Factors in our evaluation include annual and other fees, rewards rates, the earning structure (for example, flat-rate rewards versus bonus categories), redemption options, bonus offers for new cardholders, introductory and ongoing APRs, and other noteworthy features such as special financing arrangements, free cards for employees or tools for managing business expenses. Learn more about how we rate business credit cards.
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