Best Business Credit Cards for Bad Credit

Yes, you can use an EIN to get a credit card, though your selection will be limited if you don’t also list your SSN. You can apply for a short list of business credit cards with just an EIN, and some of those cards require your business to have annual revenues of $5+ million.

Credit Cards You Can Apply for With an EIN Only

Most credit card issuers will require a Social Security number when you apply for a business credit card because in almost all cases, they will require a personal guarantee on the debt. That means you are personally liable for any charges on the account that the business is unable to pay. That’s also why issuers will often initiate a hard inquiry on your personal credit report as part of the application process.

The credit score needed for an American Express business card is at least 700. That means you must have at least good credit for decent approval odds. At the moment, American Express does not offer business cards for bad, fair, limited or no credit. Nor do they have any secured business cards to help rebuild credit.

It’s important to note that an applicant’s credit score is not the only factor that Amex considers. Things such as payment history, income and current debts are also important. But the higher your score, the better your chances of approval become. Keep in mind that Amex will look at your personal credit during the approval process because you will have to provide a personal guarantee to pay Amex back if the business cannot. This is normal for business credit cards.

Yes. Most business credit cards check personal credit. Banks and credit unions usually check business credit card applicants’ personal credit history because almost all business credit cards require a personal guarantee, meaning the cardholder is liable for any balance the business can’t pay. Business credit card issuers need to know that applicants can handle this responsibility, which explains why applicants will see a hard credit inquiry on their personal credit report.

While it is possible to get a business card that doesn’t require a personal guarantee, and therefore does not check your personal credit, this shouldn’t be how you decide which business credit card to get. Apply instead for the best card you can qualify for, with rewards, rates and fees that suit the financial needs of your business.

Yes, you can get a corporate credit card with bad credit. In fact, most corporate credit cards won’t check personal credit scores in the initial corporate application process. Though corporate credit cards are business credit cards, they’re not your average business credit cards. Corporate cards are for businesses that generate a certain threshold of revenue. Typically, a business that earns at least $4 million in revenue annually will qualify for a corporate credit account. That’s why a corporate credit account doesn’t need a personal credit check or a personal guarantee: A qualifying business will have enough assets on its own for a personal guarantee to be unnecessary.

If you’re a small business owner, you’re unlikely to qualify for a corporate credit card based on revenue, so you’re probably in the market for a traditional business credit card. This will require a personal credit check. There may or may not be any business credit cards for bad credit available at any given time, but the pickings are usually pretty thin. You might want to consider using a consumer credit card for bad credit instead.

If you’re an employee at a company and are nervous about a personal credit check preventing you from getting a corporate credit card due to your bad credit score, find out who’s responsible for making monthly payments. In most corporate arrangements, the business itself is liable for the charges, not each individual cardholder. But if you’re responsible because of a joint liability arrangement, you may be facing a credit check. And if it’s an American Express corporate card, there’s a higher chance your credit will be checked prior to approval, even if you aren’t responsible for the bill. Otherwise, you probably don’t have to worry. Many business and corporate credit cards don’t check authorized users’ credit reports.

You can get a business line of credit with bad credit by applying through lenders like Headway Capital and Kabbage. The credit limits just tend to be low and the APRs high. To qualify for these business credit lines, you’ll need a business that’s been in operation for at least 1 year, but preferably 2 years. Neither Headway Capital nor Kabbage requires a certain credit score for approval, but they do assess financial information (such as your business’s annual revenue) in the application process.

Technically, a credit card counts as a line of credit, too. So you might want to consider the Milestone® Mastercard® - Less Than Perfect Credit Considered and Indigo® Mastercard® for Less than Perfect Credit, both of which consider applicants with bad credit and offer at least a $300 credit line. Both of these cards’ annual fees depend on your creditworthiness, but every month you pay your bill on time is a positive mark on your credit report, and a step in the direction of good credit.

Still, there are a few reasons why a business owner would choose a line of credit over a credit card. Spending power is one, as business lines of credit can potentially offer a higher level of funding. Business lines of credit generally have lower APRs and more flexible payment terms than credit cards, too. But there are more credit cards for bad credit than there are business lines of credit.

With bad credit, you might be tempted to apply with more than one lender. But each application will create a hard inquiry on your credit report, which lowers your score a few points. Applying for more than one line of credit can also compound a hard inquiry’s negative effect on your credit score, so apply with care. It’s a good idea to check the lender’s website or call their customer service to see about checking for pre-approval, which doesn’t require a hard inquiry.

There are no unsecured business credit cards for bad credit. However, there are quite a few personal unsecured credit cards for bad credit that you can use for business purposes. One noteworthy example is the Credit One Bank® Platinum Visa® for Rebuilding Credit because it offers: 1% cash back on gas and grocery purchases, as well as 1% back on mobile phone, internet, cable and satellite TV services. This card does not charge an application processing fee.

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 is $75 intro 1st yr, $99 after. You’ll receive a minimum $300 starting credit limit. There’s also a $19 fee for each employee you want to add as an authorized user.

Best Unsecured Credit Cards for Bad Credit

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.

Best Secured Credit Cards for Business

Ultimately, you can check our editors’ latest picks for the best business credit cards for bad credit.

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.

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.