What are the best business credit cards for bad credit?
Business owners should always consider both business and personal credit cards for company spending. Doing so increases your chances of finding the best possible deal without adding to your personal liability. With that in mind, here are our editors’ favorite cards for small business owners with bad credit:
2017’s Best Business Credit Cards for Bad Credit
For more tips on choosing and using a credit card for business, make sure to check out our Business & Corporate Credit Cards Guide
. You can also get a sense for how small-business friendly each major credit card issuer is from our annual Business Credit Card Study
What is a business credit?
Business credit is pretty much the same thing as personal credit. And considering that business credit card issuers base account approval decisions on applicants’ personal credit standing, business credit and personal credit can mean the exact same thing. Business credit card users are also held personally liable for their debt.
Business credit cards are also quite similar to general-consumer cards, with a few notable exceptions. Business credit cards require an Employer Identification Number (EIN); they offer business-specific rewards and expense-tracking tools; and they can raise the interest rate on an existing balance at any time. That’s why the best business credit card for financing big-ticket purchases is actually a general-consumer card. The same can also be true for small business owners who have bad personal credit. Few business-only credit cards are available to people with bad credit. So it’s best to consider a business credit card for bad credit to be any credit card used for business purposes that you can get with a credit score below 620 or so.
How does a new company get credit?
Whether a new company can get credit depends on the owner’s personal credit standing, not how new or old it is. That’s why business credit card applications require a Social Security number. And the fact that business credit card users are held personally liable for unpaid balances is even more proof of how personal business credit really is.