What are some alternatives to a secured business credit card?

Secured credit card approval is pretty easy to come by, no matter which card you apply for. A secured card is the easiest type of credit card to get simply because you have to place a refundable security deposit, the amount of which usually becomes your spending limit. As a result, secured cards prevent you from spending more than you put down, making it less risky for credit card companies to approve people with damaged credit. And since you pretty much pre-pay for your purchases with a secured card, past payment problems should not keep you from getting approved.... read full answer

Given their safeguards, you might assume that secured credit cards offer guaranteed approval. But that’s not the case. There are certain requirements that anyone must satisfy to get a credit card.

Here are the basic secured credit card approval requirements:

• 18+ years old
• $200+ for a refundable security deposit
• Enough income for monthly bill payments
• U.S. mailing address
• Social Security number (ITIN or passport accepted in some cases)

Some secured credit cards are harder to get than others, though. Requirements vary by credit card company. And some issuers won’t approve anyone with a non-discharged bankruptcy, a tax lien or certain other types of negative records on their credit report.

But there’s a flip side to that, too. Secured credit card approval is very easy to get if you choose the right offer. A handful of cards don’t even do a credit check when you apply.

Here are the best easy approval secured credit cards:

• First Progress Platinum Select Secured Credit Card: No credit check. $200 minimum deposit. $39 annual fee. Reports to all 3 bureaus.
• OpenSky Secured Visa Credit Card: No credit check. $200 minimum deposit. $35 annual fee. Reports to all 3 bureaus.
• Applied Bank Secured Visa Gold Preferred Card: No credit check. $48 annual fee. Reports to all 3 bureaus.
• First Progress Platinum Prestige Secured Credit Card: No credit check. $49 annual fee. $200 minimum deposit. Reports to all 3 bureaus.

If you’re less concerned with easy approval than getting the best terms, you should also consider the Capital One Quicksilver Secured Cash Rewards Credit Card and the Bank of America® Unlimited Cash Rewards Secured Credit Card. Neither charges an annual fee, and both offer pretty good rewards.

You can get business credit cards without a Social Security number, but it’s not easy and will limit your options. Approval for nearly all business credit cards is heavily reliant on the state of a small business owner’s personal finances, which is why your SSN is important for card approval.

It’s also important because you are personally liable for all business card balances. If you don’t have a Social Security number and aren’t able to get one, you could apply for a business credit card with an Employer Identification Number (EIN) instead of an SSN. But there are some steps you must take first.

Here’s how to get a business credit card without an SSN:

1. First, if you don’t already have an Individual Taxpayer Identification Number (ITIN), you must apply for one.
2. You can then use your ITIN to apply for an EIN.
3. Then, compare offers from credit card companies that will accept an EIN in place of a Social Security number.

Some credit card issuers – like American Express, Bank of America, and Citibank – will accept ITINs, foreign passports, or other government-issued IDs in place of a Social Security number. Wells Fargo and U.S. Bank will allow you to apply with an ITIN in place of an SSN, but only for their secured cards.

Still, there are only certain cards you can apply for without an SSN, and issuers usually exclude business cards.

Best Business Credit Cards to Get Without a Social Security Number:

The Ink Cash has a $0 annual fee. It offers $750 for spending $6,000 in the first 3 months. Plus, you can earn 5% cash back on the first $25,000 spent per year in combined purchases at office supply stores and on internet, cable and phone services; 2% cash back on the first $25,000 spent per year at gas stations and restaurants combined; and 1% back on all other purchases. You can apply with an ITIN in place of an SSN. It requires at least good for approval.

The Amex Business Green card comes with an annual fee of $95. The card also offers an initial bonus of 15,000 points for spending $3,000 in the first 3 months. Plus, you can earn 2 points per $1 spent on flights and prepaid hotels booked on amextravel.com, as well as 1 point per $1 spent on all other purchases. You can apply with an EIN in place of an SSN. It requires at least good for approval.

The Shell Small Business Credit Card comes with a $0 annual fee. However, this card doesn’t offer rewards. It is possible to apply with an EIN instead of an SSN. It requires at least fair for approval.

Finding a suitable business credit card that will let you apply with an EIN and not an SSN is difficult. This is largely because applying with an EIN means the issuer isn’t able to run a personal credit check on you. For the best chances of approval without an SSN, you’ll want your business finances to be in excellent shape and very established.

Another business credit card option that doesn’t require an SSN is a corporate card. Corporate cards are business credit cards that are issued to a corporation as opposed to an individual. Corporations generally need at least $4 million in annual revenue to qualify for a corporate card, however. Issuers will review the company’s financial track record and use company assets like CDs and bank accounts as collateral.

To get a business credit card with bad personal credit, shop around for either secured business credit cards or unsecured personal cards for bad credit, and apply for the offer with the lowest fees. Your options may be limited when you have a bad credit score, so comparing offers is key.... read full answer

Lenders hold business cardholders personally liable for any unpaid business debt, so when you apply, the lender will review your personal credit history. This is done to project your ability to pay back any business debt. If you are approved, the lender will also require a signed personal guarantee. This assures the lender that the business owner will personally repay any business credit card debt when the business is unable to do so.

How to Get a Business Credit Card with Bad Personal Credit

1. Submit an application.Depending on the card, you can apply online, over the phone or in response to a targeted mail offer. If your bank or credit union offers a business credit card for bad credit, you may be able to apply in-person. Applying online will usually get you the quickest decision.
2. Put up the security deposit.This is required by secured credit cards either when you apply or once you’re approved. You can write a check or authorize a one-time electronic bank draft for the amount of your deposit. The security deposit will be returned if your application is denied.
3. Wait for approval.Unless you have an unresolved bankruptcy or charge offs on your credit report, you stand a very good chance of getting approved for a secured credit card. A decision on your application can take a few seconds or a few weeks.
4. Wait for your card to arrive.Once you’re approved, your card should arrive by mail within 7-10 business days. Some issuers may expedite shipping of your card upon request. Expedited shipping may cost a fee, but could speed the delivery up to as little as 1-2 business days.
5. Activate your card.Once you receive your card, call the number/visit the URL printed on the decal affixed to it. If you activate over the phone, you may have to place the call from the number listed on your application for security purposes.

Secured credit cards and unsecured personal cards for bad credit both allow you to establish or rebuild credit as you make business purchases. Unfortunately, there aren’t really any unsecured cards marketed to small business owners with bad credit. You could get a personal credit card for bad credit and put business purchases on it, but unsecured cards for bad credit have expensive annual, monthly and one-time fees. This leaves secured credit cards as the better option.

Best Business Credit Cards for Bad Credit

Ultimately, keep in mind that, with a secured card, there is a required security deposit. It serves as collateral and increases your approval odds since the lender takes on less risk. The card’s credit limit will be equal to the amount of the deposit. Deposits typically start at $200 and are fully refundable when you close your account in good standing.