There are no unsecured business credit cards for bad credit, but there are unsecured personal credit cards for bad credit that business owners can still use. The best unsecured credit card for business owners with bad credit is the Credit One Bank Platinum Visa because it offers 1% cash back on select purchases and has an annual fee as low as $0. It does not charge an application processing fee, either.
Even the Credit One Visa leaves a lot to be desired, though. For starters, the 1% cash back rewards categories are determined after you apply and may not wind up being relevant to your business. Also, the annual fee ranges from $0 to $75 for the first year, and up to $99 after that, based on your credit. You’ll receive a minimum $300 starting credit limit, which may be reduced to as little as $225 in the first year because of the annual fee. There’s also a $19 fee for each employee you want to add as an authorized user.
Secured credit cards are better for small business owners with bad credit. They’re easier to get because they require a security deposit to open the account. The deposit is fully refundable when you close the account in good standing.
One of the best secured credit cards specific to businesses is the Wells Fargo Business Secured card. Its security deposit ranges from $500 to $25,000 (which sets the credit limit) and it offers 1.5% cash back on purchases when you enroll in the cash back rewards program.
Best alternatives to unsecured business credit cards for bad credit:
- Credit One Bank Platinum Visa (unsecured)
- Indigo Mastercard (unsecured)
- Wells Fargo Business Secured Credit Card
- BBVA Compass Business Secured Credit Card
- Discover it Secured
- Capital One Secured Mastercard
Unsecured business credit cards for bad credit don’t exist, and unsecured personal cards for bad credit may not be helpful for your business. A secured credit card will likely prove more useful in the long run. The BBVA Compass Business card offers 2-3 points per $1 spent in your choice of categories. However, it is only available in Alabama, Florida, Texas, Arizona, Colorado, California and New Mexico.
The Discover it Secured personal card offers 2% cash back on the first $1,000 spent per quarter on gas and restaurant purchases. It gives 1% back on everything else. And it offers a credit limit as high as $2,500 with an equal deposit. It has a $0 annual fee.
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