8 Best Business Credit Cards for Bad Credit (2024 Update)

Running a business comes with a fair share of challenges and one of which is having a bad credit score. We must note that you have a few options to still ensure that your business runs smoothly-even in this situation.

Credit cards for bad credit—which is the focus of our article today is one of those options. They—are business credit cards that help small to medium-size businesses increase their credit scores.

In this article, we’ll not only outline the 7 best business credit cards for bad credit scores but also break down everything you need to know to make the right decision that improves the financial health of your business.

Best Business Credit Cards for Bad Credit

1. Brex Card

Best Business Credit Card for Well-Funded Startups.

The Brex Card is a business credit card for bad credit that provides credit limits based on a company’s cash flow and does not require personal collateral. Eligibility for this business credit card is based on the spending patterns and sales volume of your company.

Main Features

• Annual Fee: Brex Card charges no annual fee and attracts no foreign transaction fees. You have to pay your balance in full either monthly or daily so there isn't a need to pay interest charges.
• Sign-up Bonus: Another important feature you get is the sign-up bonus that gives you 10,000 points once you spend your first $1,000 using your Brex card. Another 10,000 points will be added when you spend $3,000 within 3 months with your card. And finally, once you link payroll to your Brex account, you will receive an additional 20,000 points.
• Rewards: Through its Exclusive Rewards program, you start to earn unlimited rewards once you make the Brex Card your only company card. Your eligibility for the Exclusive Rewards program is determined by the bank account information you use to sign up and the third-party providers you authorize. At the value of 1 cent per point, your rewards can be redeemed to pay for hotels, flights, and much more using Brex’s travel portal. You can redeem your points when you use one of Brex's airline partners. Reward points can also be used as gift cards or you can decide to deposit them into your Brex Cash account at a penny-per-point value.

Benefits

• No annual fees
• A flexible credit limit depending solely on your company’s cash flow
• Offers charge cards so you wouldn’t be charged interest
• No fees on foreign transactions
• Generous points reward for Brex Exclusive members
• No personal guarantees required
• Brex rewards can be redeemed for statement credit, for cryptocurrencies or to pay for travel booked through Brex Travels

Pricing

As mentioned earlier, Brex Card does not have any annual fees nor does it attract foreign transaction fees.

Get a Brex Card to enjoy unlimited rewards today

2. Wells Fargo Business Secured Credit Card

Best Business Credit Card for Flat-Rate Cash-Back Cards.

The Wells Fargo Business Secured Card is a business credit card designed for business owners with poor credit history, or who are trying to build their damaged business credit.

Main Features

• Upgrades to Unsecured Credit: Wells Fargo Business Secured Credit Card constantly reviews your account so you can upgrade to an unsecured business credit card. Your eligibility for an upgrade to an unsecured card is dependent on how responsible you are with your credit card over time. Upgrade approval depends on various factors but the most important one is how you manage your accounts.
• Free FICO Credit Scores: As a holder of the Wells Fargo Business Secured Credit Card, you can track your credit every month with the free FICO credit scores you are provided.
• Security Features: Like many other business credit cards, the Wells Fargo Business Secured Card provides standard security features that include account alerts and fraud monitoring.
• Reporting: Wells Fargo helps you improve your business' credit score by reporting payment activity and card usage to the Small Business Financial Exchange.

Benefits

• Provides up to 10 cards for you and your employees
• You can choose between a cashback rewards program or a point rewards program
• Gives more bonus points when you shop at the Earn More Mall
• Freedom to design your card
• No annual fee
• No foreign transactions fee

Pricing

Wells Fargo Business Secured Credit Card does not have an annual fee or foreign transaction fee.

Redeem your credit card score with the Well Fargo Business Secured Credit Card

3. First National Bank Business Edition® Secured® Visa Card

Best Business Credit Card for Small to Medium-Sized Businesses.

With the First National Bank Business Edition Secured Visa Card, you get a secure business credit card that offers small to medium-sized business owners the opportunity to fund their business, regardless of their poor or bad credit.

Main Features

• Covers More Than Expenses: This card is perfect for your business because it gives you more control over all employee expenses and accommodates individual credit lines for each employee.
• Secure Chip Technology: With its modern chip technology and the 24/7 text, email, and phone fraud alerts you will receive, the importance placed on the security of your account is evident.
• Fraud Protection: In the rare case of fraud or identity theft, the First National Bank Business Edition Secured Visa Card guarantees that you will not be held responsible for whatever fraudulent charges are made on your account or card.
• Reward Yourself: You can use the bonus points earned on you and your employee's cards to purchase airline tickets, go on vacation, or purchase gift cards.
• Expense Management: Since employees no longer have to use their cards for work expenses, managing your company's expenses will become a lot easier. With the combination of the billing for multiple cards, tracking and managing work expenses is simplified.

Benefits

• Can get your credit limit once you provide a single deposit between $300 and $5,000.
• Card activities are reported to three recognized bureaus
• Teams up with FICO to give you free access to your FICO Score for a better understanding of your financial position
• Offers expense tracking tools
• Provides protection against fraud and identity theft

Pricing

The First National Bank Business Edition Secured Visa Card attracts an annual fee of $39 and foreign transactions are processed at 3% per transaction.

Track your work expenses easily using the First National Bank Business Edition Secured Visa Card

4. Bento for Business Visa® Debit Card

Best Business Credit Card for Convenience.

Bento for Business Visa® Debit Card is a full-featured prepaid Visa debit card that you can use as a virtual and physical card. It comes with all the perks of a business credit card without the need for a personal credit check or liability.

Main Features

• No Credit Check Required: A Bento card in most cases can be substituted for a Mastercard. Yet it does not demand many of the stipulations for Mastercard—like the requirement of a credit check for approval. Most people that apply for a Bento card do not need to provide documentation having to do with their credit once it has been confirmed that they meet the eligibility requirements.
• Control on the Card Expenses: You can set your Bento card to function only in certain capacities and days of the week. Total control of the card is placed in your hands as you can turn it on or off without needing any technical support. This feature helps prevent unauthorized transactions.
• Fast and Easy Payments: You can decide to opt for a digital wallet so you can save time while making payments. The digital wallet is a lot faster than the different payment methods you get with a physical card.
• Can be used at Any Time: With the option of adding your Bento card to your digital wallet, you no longer have to worry about leaving your wallet behind. You can use your virtual card in the same way you use a physical card.
• Security Features: Your data is encrypted with 256-bit SSL and saved in highly secure data centers. You get FDIC insurance for $250,000 of your funds within Bento. You can worry less about foreign scammers since foreign transactions can be toggled.
• Real-Time Reports: Bento offers a series of tools to improve your business's financial health, one of which is the reports you receive that help you track who is spending funds and what they are spending it on. You can also use automatic controls to manage your expenses and budget.

Benefits

• No credit checks
• No personal liability
• Offers virtual and physical debit cards
• Lets you monitor employees spending
• Offers automatic FDIC insurance for up to $250,000
• Accommodates business-to-business payments

Pricing

Bento offers a free 60-day trial, allowing you to test drive the service with up to 50 cards. No contract is required, just a monthly fee that depends on the number of your business's physical and virtual cards. The foreign transaction fee is 3%.

Request a demo from Bento Business today

5. Suncrest Bank Business Card

Best Business Credit Card for Loan Options.

The Suncrest Bank Business Card is an unsecured business credit card that was designed to aid businesses with bad credit.

Main Features

• No Annual Fees: The Business Platinum Card has no annual fees, nor does it include any additional fees for employee cards.
• Expense Management: You can set spending limits on each card linked to your business account and restrict the merchants from which purchases may be made.
• Free Online Expense Reporting: Suncrest Bank Business Cards come with automatic alerts that send you notifications when your employees use the card. This enables you to plan for incoming expenses and monitor unauthorized expenses.
• Zero Fraud Liability: In cases where your card is stolen or lost, you won’t be liable for fraudulent purchases.

Benefits

• Offers 0% intro APR for the first 20 billing cycles
• Provides Cardmember services at all hours of the day, all year round
• No additional fee for employee cards
• Includes expense management tools
• No annual fee

Pricing

The Suncrest Bank Business Card has no annual fee and offers 0% intro APR for the first 20 billing cycles, but after then charges a rate of 11.99% – 20.99% variable on the ongoing APR.

Manage your credit with the Suncrest Bank Business Card

6. Capital One® Spark® Classic for Business

Best Business Credit Card for Small Business Owners with Limited Credit History.

Capital One® Spark® Classic for Business is a business credit card designed to cater to business owners with average credit. You should consider this card if you are looking for a business card that you can use to earn rewards without an annual fee.

Main Features

• No Foreign Transaction Fees: There are no extra charges for transactions that are made outside the U.S. or in foreign currencies.
• Experienced Customer Service Representatives: Another perk of using the Capital One Spark Classic Card is access to customer service officers who are specially trained to help you with whatever business needs you may have.
• Free Employee Cards: You are provided with free employee cards that help you manage and track work expenses better maximize your reward potential.
• Fraud Protection: The Capital One Spark Classic Card comes with the benefit of real-time security coverage that helps protect your account from fraud attempts.
• Account Alerts and Spending Summaries: Not only do you get personalized text and email reminders for all your account activity, but there is also a provision for quarterly and yearly summaries of all purchases charged to your account.
• Personalized Payment Due Date: If you are not comfortable with your payment dates then you can decide to choose a more favorable monthly due date.
• Travel Assistance: This includes emergency services and referrals to medical and legal assistance for you, your immediate family members, and your business associates.
• Expense Management: You can manage employee spending with the individual cards linked to your business account and easily set limitations on those cards.

Benefits

• Provides up to 90 days extended warranty and protection
• Easy connection to Quickbooks, Excel, and Quicken
• No Annual fee
• Get as many employee cards as you need for free
• Can customize payment dates
• Unlimited cashback rewards rate

Pricing

Capital One® Spark® Classic for Business does not charge an annual fee and its prime rate varies based on the prime rate.

Get a better credit score with Capital One® Spark® Classic for Business

7. Credit One Bank® Platinum Visa®

Best Business Credit Card for Building Customer's Credit.

Credit One Bank Platinum Visa is an online business credit card that offers you the opportunity to build or rebuild your credit score.

Main Features

• Travel and Car Damage Coverage: Because of the nature of the Credit One Bank Platinum Visa, it offers travel accident and car rental damage waiver insurance.
• Zero Fraud Liability: You get zero fraud liability when you report any fraudulent charges made with your card.
• Rewards: Credit One Bank Platinum Rewards Visa allows you to earn cashback on purchase of goods under eligible categories like gas, groceries, as well as mobile phone, internet, cable, and satellite TV services.
• Free Online Access to Your Credit Score: With Credit One Bank Platinum Visa, you get free online access to track Experian credit score monthly and monitor your credit health.
• Customized Notifications: There is the option to customize your notifications on your and your employees' transactions, payment reminders, and even fraud alerts to either be via email, text, or push notifications.
• Protection Against Unauthorized Charges: You can trust the Zero Fraud Liability of Credit One Bank Platinum Visa to protect you from all forms of unauthorized charges.

Benefits

• Designed to help you build your credit
• Card rewards earn up to 5% cashback
• Company policy states a minimum credit line of $300
• Offers shopping discounts
• Protection against unauthorized charges
• Compatibility with digital wallets

Pricing

You are charged $75 for your first year but $99 subsequently, billed at $8.25 per month. The APR is fixed at 23.99%

Earn cash back for every eligible purchase with Credit One Bank Platinum Visa

How to Choose the Right Business Card for Bad Credit

As the number of business credit cards for bad credit continues to increase, the best will be chosen based on the welcome bonuses, fees, rewards, and other perks that they offer.

You should spare no detail when it comes to determining which business credit card will be best for you and your business's financial health. As overwhelming as the search can be, there are a few factors you need to be on the lookout for before making your decision.

1. No Annual Fees

You should begin your search for a business credit card with the ones that offer no annual fees. These fees tend to be hazardous to your credit limit since they reduce the deposit and the power of rewards.

2. Deposit Restrictions

Another way to streamline your options is to check the restrictions on the deposits you can make. It is advised that when spending, you do not go beyond 30% of the amount you deposit.

As much as the goal is to avoid high credit utilization and the negative impact it will have on your credit score, you need to ensure that the maximum deposit factor will not limit your spending.

3. Reports to All Three Credit Bureaus

Considering that the essence of all credit cards is to build better credit, the business card must report all your credit activities to the three credit bureaus. Go for a card that easily reports your payments and balances to the credit bureaus.

4. No Hidden Fees

While some credit cards will come with enticing perks, you must ensure that there are no hidden fees through which providers make you pay for whatever juicy benefits they might offer.

There are secured credit cards that will charge an application, annual, or even a monthly maintenance fee. You should rate a credit card not only on its features but its affordability in this respect.

How to Get a Business Credit Card With Bad Credit

Apart from those that register for a business credit card through deals mailed to them, most people surf the internet to find information on the perks of each business credit card and how to go about getting them.

Regardless of the route you take, you must have your Employer Identification Number (EIN) or Taxpayer Identification Number (TIN) and other relevant business information as they are the requirements tied to your registration process.

Once you have provided these documents to the bank service providing your business credit card of choice then you're all set to apply for your business credit card.

In a case where your application for the card of your choice gets rejected, you can reach out to the reconsideration department of the bank service. They will review your application to determine if other factors could help you qualify.

Apart from those that register for a business credit card through deals mailed to them, most people surf the internet to find information on the perks of each business credit card and how to go about getting them.

Regardless of the route you take, you must have your Employer Identification Number (EIN) or Taxpayer Identification Number (TIN) and other relevant business information as they are the requirements tied to your registration process.

Once you have provided these documents to the bank service providing your business credit card of choice then you're all set to apply for your business credit card.

In a case where your application for the card of your choice gets rejected, you can reach out to the reconsideration department of the bank service. They will review your application to determine if other factors could help you qualify.

How to Use a Business Credit Card to Improve Your Credit

There are quite a few simple steps you can take to build business credit fast with your business credit card.

1. Applying for a Business Credit Card

Even though you might think you don't need a business credit card at the start of your business, it is in your best interest to get one as soon as you can. Building a good credit score takes time and the longer you have had an active business credit card, the better for your credit score, generally speaking.

Applying for a business credit card at the early stages of your business helps you in times when you might need a long-term loan. This will easily be granted to you if you have a proven history of creditworthiness.

2. Manage Your Payment History

Your payment history is another big factor that is beneficial to your business credit score. You can establish a positive payment history when you use your business credit card for everyday business purchases. This can be done by putting most of your inevitable expenses on your business credit card.

3. Stay Out of Debt

Especially in the early days of your business, ensuring that you stay out of debt is not only one of the most responsible things you can do as a small business owner but also a great way to build a better business credit score.

4. Keep Your Credit Utilization Low

Credit utilization rate is another huge factor that is used in calculating your business credit score. It is the percentage of the total available business credit that you have used.

The best way to maintain a low credit utilization rate is to keep your credit utilization ratio at 30% or under. With this, you will have more credit available to you than the credit balance you owe.

If you are having trouble staying under the desired credit utilization rate, you can contact your card issuer and increase your credit limit.

Overall, it is important to note that building your business credit will take time, especially if you're a new business owner that does not have any credit history. Follow the steps stated above to build a good credit history and open many doors for your business in the future.

Alternatives to Business Credit Cards for Bad Credit

If you're not comfortable with the idea of getting a low credit business credit card, then there are a few limited options that can help you improve your credit score and put your business on the right track.

1. Bad-Credit Business Loans

A bad credit business loan is a business loan that is designed for businesses that have bad credit ratings. Business owners who lack an extensive credit history or a good credit score have the option of going for secured loans, unsecured loans, or guarantor loans.

On the one hand, unsecured loans are a bit riskier for business owners than secured loans with their high-interest rates and short repayment dates. Although secured loans are less risky, they require some sort of collateral.

A guarantor business loan, however, lets you get someone to cosign the loan as a surety against default.

2. Invoice Financing

Invoice financing is a special kind of short-term borrowing that a bank or lender (such as a factoring company) offers to its customers using unpaid invoices. It gives companies and firms access to short-term liquidity using invoices that customers are yet to pay for.

This is a fast and easy way to get money since there are no collateral requirements—the invoices themselves are seen as collateral.

An advantage this form of borrowing holds over traditional business loans is that the application and approval process is a lot faster. If everything is in place you can conclude this process within a day and get the funds deposited in your account.

Although the interest rates are generally higher, you are informed of this before committing to using your invoice to finance your business.

FAQ

Which Business Credit Card for Bad Credit Should I Get?

You shouldn't let a bad credit score become a hindrance in getting a business credit card to suit your business needs and that is why we have highlighted the best options for you. To recap, here are our recommendations:

• Brent Card is best for well-funded startups.
• Wells Fargo Business Secured Credit Card offers flat-rate cashback cards.
• First National Bank Business Edition Secured Visa Card is versatile enough to suit small to medium-sized businesses.
• Bento Business Visa Debit Card is excellent if you want credit card convenience without a personal check.
• Suncrest Bank Business Card comes with the best business loan options.

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