Business Credit Cards for Bad Credit

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.

A business credit card with no personal credit check is hard to come by. A personal credit check allows lenders to measure a business owner’s ability to pay back any debts when there’s little or no business credit history to review.

In addition to the personal credit check, lenders require business owners to provide a personal guarantee. This states that the business owner is personally responsible for paying off any balance if the business is unable to do so. Very few business cards don’t require a personal guarantee.

If you don’t have good credit, there are personal credit cards that do not require a credit check at all. You can use them for business purposes, but they usually require a security deposit and don’t let you borrow money.

If you decide that you’re comfortable applying for a business credit card despite the personal credit check, check out our editors' top picks for the best business credit cards for each credit level. You might also be interested in WalletHub's credit building guide. This will help you on your road to excellent credit.

There are no Capital One secured business cards. The only Capital One secured card is the Secured Mastercard for consumers. All of Capital One’s business credit cards are unsecured. They include the Spark Cash, Spark Miles and Spark Classic cards.

The Spark Classic for Business card is the easiest unsecured Capital One business credit card to get. Small business owners with fair or limited credit can get approved. The other offers require at least good credit. The Spark Classic card has a $0 annual fee and gives 1% cash back on all purchases.

If you have bad credit, the Capital One Secured Mastercard still is an option even though it technically isn’t a “business credit card.” It’s actually one of the best options because there’s a $0 annual fee. The required security deposit is $49, $99 or $200, depending on creditworthiness. But you will always start out with at least a $200 credit limit, no matter what your required deposit is. And you can add money to your security deposit to increase your credit limit by the same amount, up to a maximum of $1,000.

But if you really want a secured business credit card, there are some available from other issuers, such as Wells Fargo and BBVA. The BBVA Compass Business Secured card is probably the best choice because there’s no limit to how much you can deposit above the $500 minimum.

To get a business credit card with bad personal credit, shop around for either secured business credit cards or unsecured personal cards for people with bad credit, and apply for the offer with the lowest fees. 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.

Unfortunately, there aren’t really any unsecured cards marketed to small business owners with bad credit. You could get a personal credit card for poor 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.

Secured credit cards and unsecured personal cards for bad credit both allow you to establish or rebuild credit as you make business purchases. But 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.

Once you’ve found your desired credit card for business with bad personal credit, the steps to getting one are fairly straightforward.

How to get a business credit card with bad personal credit:

1. Submit an application. Depending on the card, you can apply online, by 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 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 by phone, you may have to place the call from the number listed on your application for security purposes.

Some of the best secured business credit cards for bad personal credit include the Wells Fargo Business Secured Credit Card and the BBVA Compass Business Secured Credit Card. Or, you could go with a personal secured card such as Discover it® Secured. Just stay away from putting business and personal purchases on the same card.

Secured business cards are always your friend. It saves you when you're financially in distress. But the thing is that you just have to be diligent in paying your obligation. And the company where you bought your item is assured that it gets paid still even if you failed to settle your obligation. But if you want to build your credit score, just pay your obligation on time. so Simple. The Bible says, "Owe no one anything except to love."- Romans 13:8. It doesn't mean that you don't incur any debt, but it means you pay your obligation on time.