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 if you have a credit score below 640, which is considered bad credit, 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, 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.

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.

Some of the best secured business credit cards for bad personal credit include the Wells Fargo Business Secured Credit Card and the BBVA Compass Secured Visa® Business Credit Card.

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 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.

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.

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 Credit Card. Its security deposit (which sets the credit limit) starts at $500 and it offers 1.5% cash back on purchases when you enroll in the cash back rewards program.

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

One way to check for business credit card pre-approval is to visit a local branch and ask a banker to help you with this matter. Just note that not all issuers provide this service, so best to call them before heading down to your local branch.

Aside from checking for pre-approval by visiting a local branch another option is to sit back and wait for a pre-approved business credit card offer in the mail. To respond to a mail offer after it arrives, visit the website or call the number listed in your pre-approval letter. You’ll have to provide details such as your name, address and possibly, your Social Security number (SSN). You will also need to enter the promo code included in the mailing.

None of the major credit card issuers currently provide any online tools for business credit card pre-approval, but you could always contact an issuer before applying directly or checking for in-branch pre-approval offers.

When possible, business credit card pre-approval has a lot of benefits. For example, pre-approvals typically use a soft inquiry that does not affect your credit score. When you submit a full application for a card, on the other hand, there’s a hard inquiry into your credit history that causes a temporary dip in your score.

But it’s important to note that pre-approval is never a guarantee of actual approval. It only means that your preliminary information indicates you’re a likely candidate for approval if you actually apply. In most cases, applications for pre-approved offers are ultimately approved.

Also, bear in mind that an issuer will review your personal credit history when you apply for a business card. That’s because, in almost all cases, you will be held personally responsible for repaying the balance if the business cannot.

There is no way to get guaranteed business credit card approval. Business credit cards always have certain requirements that must be met for approval, such as exceeding credit and income thresholds, having proof of U.S. residency and/or providing a Social Security Number (SSN).

The closest thing to guaranteed business credit card approval is a secured business credit card. The Wells Fargo Business Secured card has high odds of approval even to people with bad credit. It requires a minimum $500 cash deposit. This deposit serves as collateral and is equal to your credit limit. But even though the deposit makes Wells Fargo’s risk very low, they might still reject your application if you have pending tax liens or bankruptcies on your credit report.

Business credit card approval relies on your personal credit history. The reason is that business credit cards require a personal guarantee. Issuers need an assurance that any money they lend will be paid back. The personal guarantee states that if the business is unable to repay a debt, then the business owner is personally liable.

Yes, you can apply for some business credit cards with an EIN only, but most credit cards will not allow it. Most business credit cards require a Social Security number or Individual Taxpayer Identification Number in addition to an Employer Identification Number (EIN).

The EIN shows that you’re legitimately a business owner. The SSN, or ITIN, allows the credit card company to review your personal credit history when evaluating your application and hold you personally accountable for paying the bill if you’re approved. Almost all business credit cards require personal liability. But there are a few exceptions.

Business Credit Cards You Can Apply for With an EIN Only

• Office Depot Business Credit Card: You can apply with without an SSN if your company makes over $5 million per year and has been in business for at least three years. Or, if you are a government entity (including schools) or a nonprofit, you can apply without personal liability also. This card only works for OfficeMax and Office Depot purchases. This card requires fair business or personal credit.
• Sam's Club® Business Credit Card: You can apply without an SSN if your company makes $5+ million per year, is more than 2 years old and has more than 10 employees. You can only get this card if you’re a Sam’s Club member, and you need good business or personal credit to be approved. You can use the card anywhere that accepts Mastercard.
• SuperAmerica Fleet Credit Cards: You can apply for these cards without an SSN if you’ve been in business for at least three years. You can use it at all SuperAmerica gas stations and 45,000 partner stations nationwide. Both cards require good business or personal credit.
• Shell Small Business Credit Card: You can get this card without any personal liability if you’re applying on behalf of a government entity or non-profit, or if your business has been open for at least three years and does $1+ million in yearly sales. This card requires fair business or personal credit, and you can use it at any of the 12,000 Shell gas stations nationwide.

If you want to apply for a business card with only an EIN, the choices are slim. But your options become far greater when you consider the full range of cards that require personal liability.

If you’re worried that your personal credit isn’t good enough to qualify for a business credit card, remember that you can apply for a secured business card, or even consider applying for a secured personal card and use it for business expenses. So, consider personal options such as the Discover it® Secured Credit Card as well as the likes of the Wells Fargo Business Secured Credit Card. Both are available to people with bad credit.

To get a business credit card, you must provide your Tax ID Number (TIN) or Employer ID Number (EIN) along with your Social Security number on the business credit card application. To qualify, a business credit card applicant must also be an owner, officer or partner of a business, which may include sole proprietorships, independent contractors and non-profits, in addition to corporations, partnerships and LLCs. Then, if you get approved for a business credit card, your card will list your company’s name in addition to your own.

Other than those things, the process of getting a business credit card is pretty much the same as applying and getting approved for a credit card for personal use. For instance, the issuer will still check your personal credit history when you apply for a business credit card, and you’ll be held personally liable for any unpaid balance. With that in mind, it’s also worth noting that there’s no rule against using a consumer credit card for business spending, so getting any credit card could count as getting a credit card for your business.

Below, we’ll you guide you through how to get a business credit card, step by step, then highlight the various requirements that small business owners typically have to meet in order to get a credit card in their business’s name.

How to Get a Business Credit Card

1. Own or operate a business. Most major credit card issuers have broad definitions of what constitutes a “business.” Owners of traditional businesses obviously count, like LLCs, non-profits, corporations, and so on. Independent contractors and freelancers can also qualify for business credit cards from some issuers. Even sellers on eBay, Airbnb hosts, etc., may be able to get one. Essentially, if you provide goods or services and make income from them, you could qualify for a business credit card. If you’re one of these non-traditional “business owners,” you’ll list “sole proprietorship” under business type on your application.
2. Check your personal credit score. Your personal credit standing is much more important to your business credit card approval odds than your business’s credit standing. Checking your credit score for free is an easy way to get a sense of what business credit cards you’re likely to qualify for, allowing you to focus on relevant offers.
3. Determine whether you need cards for employees. Business credit cards typically allow you to add more authorized users than consumer cards. You can also customize spending privileges for each employee.
4. Choose between rewards and 0% rates. Rewards are best when you always pay in full, and you can find great rewards deals from both business and consumer credit cards. But if you want a card for financing purposes, get a consumer card with a 0% rate, as consumer cards have more predictable regular APRs than business credit cards.
5. Compare cards based on your intended usage. Calculating how much each credit card offer will save or cost you in terms of your business’s spending and payment plans is the best way to find the right card.
6. Apply for the best credit card for your business. You can apply for a business credit card online and, in some cases, by phone, by mail or in person.

Those are the basic steps for finding and applying for the right business credit card. But it’s not always that easy to actually get approved. Below, we’ll cover the biggest requirements you’ll likely need to meet in order to get approved for whichever business credit card you decide to apply for.

Business Credit Card Requirements: What You Need to Qualify

The most important business credit card requirements are a good credit score and a low debt-to-income ratio. These are the requirements weighed most heavily by business credit card issuers. Your personal credit score lets them know how you’ve handled your finances in the past, and your personal debt-to-income ratio lets them know how able you’ll be to pay off what you borrow each month.

When it comes to determining whether or not to approve you for a business credit card, issuers want to feel confident that you’ll be able to pay your bill each month. Personal financial records are the best way to judge that because they usually go back much further than business records, and business credit card owners are personally liable for balances, anyway. That helps to explain some of the boxes you’ll need to check in order to qualify for business credit card approval.

Business Credit Card Requirements:

• Owner, officer or partner of a business, which may include sole proprietorships, independent contractors and non-profits, in addition to corporations, partnerships and LLCs.
• Employer Identification Number (EIN) - assigned by the IRS when you register your business. If you’re a sole proprietor who doesn’t have an EIN, you’ll just fill in your SSN.
• U.S. resident
• 18+ years old
• Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN)
• Ability to make monthly bill payments

In addition to these requirements, there’ll be other information you should have on hand. You’ll need to provide your annual income, which will help the issuer determine your debt-to-income ratio. On top of that, you’ll need to list business information such as the number of employees you have, how long you’ve been in business, your annual business revenue, and your business contact information. Even if you’re a one-man startup operation that hasn’t opened yet, you’ll still need to provide all of that information.

If you haven’t made any business revenue, be honest about it. Trying to stretch the truth on any kind of credit card application is not a good idea. There are plenty of business credit card options out there for new businesses, so don’t worry.

Once you’ve covered the above requirements, you’re just about ready to apply for a business credit card. Just remember that each issuer has its own specific standards. So make sure to read your chosen card’s terms and conditions before submitting an application.