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.

You need a credit score of 700 or higher to get the best business credit cards. The top business credit cards usually require at least good credit for approval, but there are still options for small business owners with fair, limited or bad credit. In other words, you can get a business credit card with pretty much any credit score, though the most attractive offers are reserved for the most creditworthy applicants.

By the way, it’s your personal credit rating that really matters, even though you’re applying for a business credit card. The higher your score is, and the more income you have relative to your debt, the better your chances of approval will be.

Popular Business Credit Cards by Credit Score Requirement

• Excellent credit: CitiBusiness® / AAdvantage® Platinum Select® Mastercard® & Costco Anywhere Visa® Business Card by Citi
• Good credit: Ink Business Cash® Credit Card & Capital One® Spark® Cash for Business 
• Fair credit: Capital One Spark Classic for Business & Office Depot Business Credit Card
• Bad credit: BBVA Compass Secured Visa® Business Credit Card

In general, good-to-excellent credit gets you access to the biggest sign-up bonuses, the highest ongoing rewards rates, and lots of options with no annual fee. People with lower scores are more likely to have to choose between low fees and other perks.

If you’re wondering why credit card companies rely on personal credit to evaluate business credit card applications, a lot has to do with personal credit histories usually being longer than the business version. Since they’re longer, they tend to be more predictive. Most credit card companies also consider a business owner’s personal finances to be intertwined with the business. That’s often true, since personal savings are the top source of start-up capital for new businesses.

To get a business credit card for your LLC, compare offers for cards to determine which business credit card is likely to save your LLC the most money, based on rewards, fees, interest rates and other features. Then, apply for the card online, wait for a decision and, if you’re approved, wait for your card in the mail.

You can get a business credit card for an LLC, as long as you are permitted by the corporation. If you aren’t an owner of the LLC, you must at least be an authorized officer  – in other words, legally able to sign for the company – in order to apply for a credit card in the LLC’s name. Authorized officers will be named on the LLC’s operating agreement, and can be the LLC’s owner, president, managing member, member, or treasurer, for instance.

When it comes to which business credit cards you might qualify for, a lot depends on your personal credit score. Most small business credit card issuers will judge your application based on your personal creditworthiness because they require a personal guarantee for any balance on the account.

How to Get a Business Credit Card for Your LLC in 4 Steps

1. Check your credit score. Your personal credit score plays a big role in which business credit card you can get, but you don’t need good credit to get a business credit card. You can check your latest credit score for free on WalletHub.
2. Determine which card would be best for you. The ideal business credit card will give you the best value in rewards and benefits, based on your business spending and your overall needs. Narrow down the choices based on rewards rates in your biggest spending categories and other card benefits, and then compare expected earnings after taking any fees into account.
3. Fill out the application. You’ll need to provide details about the LLC on the application, such as its name, address, phone number, annual income, number of employees, years in business, and Employer Identification Number (EIN). You’ll also need to provide some information about yourself, such as your Social Security number and personal income, among other things.
4. Wait for a response. You could get a decision instantly, or the card issuer may need a closer look at your application. Most credit card issuers make a decision on applications within 2 weeks, and if you’re approved, your new card should get to you in 7-10 business days after approval. If you get denied for the card, consider calling the card issuer’s reconsideration line or looking into other credit card options.

Business credit cards can be assets for LLC owners, as they tend to offer more business-focused benefits and rewards, with the potential for higher credit limits than personal cards. That said, many LLC owners use a personal credit card for business purposes – and that’s perfectly fine, if you aren’t interested in building business credit and you keep your business and personal expenses separate.

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.