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10 Best Business Credit Cards For Bad Credit

best business credit cards for bad credit

Sometimes, it becomes challenging to manage a business when you have insufficient capital or you are struggling with poor cash flow. In such circumstances, credit cards become the much-needed savior. However, not every business owner knows the best business credit cards for bad credit.

Therefore, this guide is prepared for the sole purpose of informing you of the best business credit cards you can consider even if you have a bad credit score. Being diving into the list, you should understand how business credit works.

What are business credit cards for bad credit?

Business credit credits are financial payment solutions extended to businesses to cater to their expenses and improve their cash flows. They differ from personal credit in that they are offered to businesses instead of individuals. However, they work in a similar way.

Some business owners could have bad credit scores, thus locking them out of major credit facilities. Therefore, such business owners with bad credit have to rely on business credit cards that give credit facilities to such borrowers.

Business credit cards for bad credit help business owners, entrepreneurs, and proprietors with a FICO of below 630 to access credit. They are usually secured or corporate credit cards.

Secured credit cards are easy to acquire because they are backed by a cash deposit that acts as collateral. On the other hand, corporate credit cards do not collateral but the borrower must have strong revenue and a sizeable bank balance to be eligible for these credit cards.

Without further ado, here is a list of 10 best business credit cards for bad credit.

10 best business credit cards for bad credit

The following list follows no particular order. However, these are the best business credit cards for businesses and owners with bad credit scores.

1. Metrobank business credit card

Metrobank business credit card is issued to Metro Bank customers to increase their cash flow and build credit. It also offers relatively low interest rates compared to other credit cards. Therefore, it is a good credit card for high street stores that operate seven days a week. Here are the pros and cons of using this business credit card.

Pros

  • Relatively low-interest rates (14.9% APR)
  • No annual fees
  • Up to 56 days to spread the cost of purchases
  • No bank transfer fees

Cons

  • Applicants with low credit scores may be disqualified
  • Foreign exchange fees charged on transactions made out of Europe
  • No perks or rewards

 2. Barclaycard payments select

best business credit cards for bad credit

Barclaycard payments select credit card does not offer miles or points when you use it. However, it is a good credit card that can help small businesses access credit from Barclays to grow their business.

Although there is no sign-up bonus, this card is worth it because of its many benefits. The pros and cons of using this credit card are listed below.

Pros

  • No annual fees
  • Up to 56 days of interest-free credit
  • Includes cardholder misuse insurance/fraud protection
  • A variety of discounts, business rewards, and offers
  • Keeps track of business transactions

Cons

  • High APR of up to 27.5%
  • Foreign exchange fees

3. Brex card

Brex credit cards are corporate cards that are built for scale. These cards do not require credit checks for applicants. Therefore, many business owners will qualify for these credit cards despite their bad credit scores. Here are the pros and cons of this business credit card.

Pros

  • No personal guarantee
  • No annual fees
  • No foreign transaction fees
  • Handsome bonuses
  • No credit score limitations

Cons

  • Daily repayment may be required
  • The reward structure is complex
  • High capital/revenue requirement before approval

4. BILL Divvy corporate card

BILL Divvy corporate card is a credit card that offers huge rewards to cardholders, making it one of the best credit cards for business owners. You can get up to 7x points on expenses in restaurants and 5x points on expenses in hotels.

Business owners can adjust and control the budgets of each employee holding this card. It is convenient for businesses with consistent spending and cash flow. The rewards gained may be lost if you fail to use the card in a given month. Here are the pros and cons of using this business credit card for bad credit.

Pros

  • Card-level spending controls
  • No annual fees
  • No requirement for offsetting annual fees with rewards
  • Terrific rewards

Cons

  • One must pay the balance in full in each billing cycle
  • The reward structure is very complicated

5. Credit One Bank Platinum Visa

This is a good unsecured business credit card for businesses with bad credit. This card is designed to help individuals and businesses rebuild credit. Its main features include 23.99% variable APR and credit tracking over time. The pros and cons of this credit card are listed below.

Pros

  • Free monthly credit score updates
  • Fraud liability protection
  • One can customize repayments
  • Up to 10% cash-back rewards
  • Credit line increases opportunities for higher credit

Cons

  • High monthly and annual fees
  • Minimum credit line of $300
  • High APR
  • Low credit limit

6. Wells Fargo Business Secured Credit Card

Wells Fargo is one of the biggest banks in the United States. It is estimated that it has over 70 million customers worldwide. Besides providing financial services, Wells Fargo offers credit services to individuals and businesses.

This business credit card is designed to help businesses with bad credit access credit from Wells Fargo. This credit card allows business owners to get credit of between $500 and $25000 depending on the collateral they have.

This card is useful for businesses with a small amount of bank deposit because it will be used as collateral. The pros and cons of this business credit card for bad credit are listed below.

Pros

  • No annual fees
  • No foreign transaction fees
  • 1.5% cash back bonuses on eligible purchases
  • Direct bill payment options
  • Fraud liability protection
  • Online account management

Cons

  • The credit limit depends on the collateral
  • High-interest rates
  • Cash advance/balance transfer charges

7. Capital One Premium Secured

This card is issued to anyone willing to build a credit score. While it is not specifically designed for business, it is one of the best credit cards that business owners can have when they have bad credit.

The main features of this card include security deposits of $49, $99, and $200 when applying for the card. Additionally, the cardholders automatically qualify for higher credit after six months from the date of card issue. Here are the pros and cons of this business credit card.

Pros

  • No annual fees
  • No fees on foreign transactions
  • Cardholders have the freedom to choose due dates
  • Automatic pay option for bills
  • Artificial intelligence assistance
  • Balance transfer options
  • Emergency card replacements
  • Credit score monitoring
  • Free card replacement

Cons

  • High-interest rates
  • APR can go up to 30.74%
  • No rewards for spending

8. Revenued Business Card

Revenued business card is a prepaid Visa spending credit card that is linked to individual bank accounts. Therefore, they do not check the credit score when issuing the cards. However, you are required to provide at least 6 months of bank statements and have at least $10,000 monthly for you to qualify.

This credit card helps business owners to pay their bills even if they have bad credit. Therefore, it is a business credit card that every business with a bad credit score should consider. Here are the pros and cons of using this business credit card for bad credit.

Pros

  • No credit check
  • No annual fees
  • 3% cash-back rewards and bonuses

Cons

  • High factoring costs
  • Cannot be used to build credit

9. Discover it Secured Credit Card

Discover it secured card is issued to a general consumer credit card that is fit for business owners. With this credit card, business owners can pay their bills and manage to keep their business running.

Even those with a FICO score of 300 can qualify for this credit card. Therefore, it is one of the best business credit cards for business owners with bad credit scores. Here are the pros and cons of using this credit card.

Pros

  • 2% cash bank on $1000 spending on specified expenses
  • No annual fees
  • Discover matches all cash bank earned in the first year
  • Reports to 3 major credit bureaus
  • Anyone with bad credit can qualify
  • New cardholder bonus offers

Cons

  • High APR of up to 24.49%
  • Requires minimum security deposit to qualify

10. Opensky Secured Visa

Opensky secured Visa is a secured business credit card that offers no rewards. However, it is a good credit card for startup businesses with bad credit. The minimum deposit required is $200 and the maximum deposit is capped at $3,000.

The good thing about this credit card is that you do not even need a bank account to qualify. Instead, you only need to show proof of consistent monthly income. Here are the pros and cons of using this credit card.

Pros

  • No credit check required
  • Lower APR compared to other credit cards
  • Everyone can get it provided they are eligible

Cons

  • $35 annual fees
  • No rewards/bonuses
  • 3% foreign transaction fees

Wrapping up

If you own or manage a business, you know how hard it can get when your cash flow is poor. At that time, you are likely to go for business credit to supplement the cash flow and keep your business running. However, it is not easy to know the best business credit cards for credit cards if your credit score is poor.

The above guide will help you identify the best business credit card that meets your needs. The credit score will not hinder you from accessing credit. Therefore, go for the right credit card and use it properly to rejuvenate your business.