Business Credit Cards for 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.

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.

There are several easy approval business credit cards. That’s because the easiest business credit cards to get only require fair or bad credit. They include Capital One Spark Classic for Business,  the Staples Business Credit Card, and the Wells Fargo Business Secured Credit Card. It’s also worth noting that while you must have a business to get one of these cards, your personal credit history matters a lot more than your company’s.

Here are your options for easy approval business credit cards:

• Limited Credit: Capital One Spark Classic for Business
  You’ll get 1% cash back on all purchases. There’s no annual fee, and the purchase APR is 24.24%.
• Fair Credit: Staples Business Credit Card
  You’ll save $50 on a purchase of $150 or more made within 45 days of opening your account. You’ll also get 5% back in Staples credit for each purchase. There’s no annual fee. Your APR will be somewhere between 14.99% and 23.99%, depending on credit worthiness.
  
• Bad Credit: Wells Fargo Business Secured Credit Card
  You’ll get 1.5% cash back on purchases. The annual fee is $25. The minimum security deposit is $500. And the APR is 16.40%. The BBVA Compass Business Secured Card is another good option.
  
• Personal Option: Discover it Secured Credit Card

You’ll get 2% cash back on the first $1,000 you spend at gas stations and restaurants each quarter. You’ll get 1% cash back on all other purchases. Discover matches the cash back you earn the first year. There’s no annual fee, the APR is 24.24%, and the minimum deposit is $200.

There are a few easy approval business credit cards, so you shouldn’t let limited or damaged credit prevent you from getting the card your business needs. And remember, if you pay your bills on time and keep your credit utilization ratio low, your credit should steadily improve over time.

Just about all business credit cards allow instant approval, at least if you apply online. But even though an instant decision is likely, it’s not guaranteed. The credit card company may take more time to decide whether an applicant meets their requirements. Or they may have trouble verifying the information on the application right away if there’s something incorrect or outdated.

In order to get the best chances of instant approval for a business credit card, your personal credit score should exceed the minimum requirements of the card you apply for. The higher your income, the better your chances are, too. Secured business credit cards for bad credit will provide the highest odds of instant approval.

Here are the best instant approval business credit cards:

• Wells Fargo Business Secured Credit Card
• Capital One® Spark® Classic for Business
• Capital One® Spark® Cash for Business
• Ink Business Unlimited® Credit Card

Getting instant approval on business credit cards is not unusual if you apply online. But you shouldn’t expect to receive it, as in some cases approval might take a few weeks. After approval, delivery of a card usually takes 7-10 business days, but many issuers allow you to expedite either for free or for a fee.

A business credit card with no personal credit check is hard to come by. Secured business credit cards are much easier to get than regular unsecured business credit cards, but there’s still a personal credit check involved, and you’ll have to pay a security deposit. 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.

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.

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.

One way to check for business credit card pre-approval is through the business pre-approval tool on the American Express website. Amex is the only one of the 10 largest credit card issuers that allows prospective business credit card applicants to check for pre-approval. Other issuers that offer credit card pre-approval don’t include business cards in the results.

Aside from checking for pre-approval online, 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. Enter your name, your address and the last four digits of your Social Security number (SSN). You will also need to enter the promo code included in the mailing. Some issuers will also allow you to visit a local branch to check for business credit card pre-approval.

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.

You can apply for a business credit card with an EIN only, but it’s very rare. Two of the only business credit cards you can get with just an EIN, and no SSN required, are the Office Depot and Shell Gas business cards. Most business credit cards require an EIN, or Employer Identification Number, which the IRS assigns every U.S.-based company that applies for one. But most business cards also require a Social Security number or an Individual Taxpayer Identification Number. 

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 EIN only:

• Office Depot Office Max 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 good business or personal credit.
• Sam’s Club Mastercard Business: 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 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 14,000 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 don’t have to use a business card for business expenses. So consider personal options such as the Discover it Secured Card as well as the likes of the Wells Fargo Business Secured Card. Both are available to people with bad credit.