Business Credit Cards for Bad Credit: Top Options and Tips to Rebuild Credit

Whether you're a new business building up a credit rating or recovering from financial troubles and rebuilding your score, there are options to simplify your business spending. Consider applying for the following options for business credit cards for bad credit.

Understanding Bad Credit

Bad credit is a misnomer for businesses. You're either a new business building up your credit history or in a cycle of contraction where you rebuild your credit after tough business decisions.

Like your personal credit score, your business credit score is based on how long your credit history is, how consistently you pay your credit card bills and loan payments, and how much of your credit limits you utilize. Responsible use of a business credit card can be part of taking your credit from "bad" to "good."

Secured Credit Cards: A Safe Option

Secured credit cards may be a safe option for those wanting to build their credit. Secured credit cards require a cash deposit in the amount of the credit limit. If the credit limit is $1,000, you would deposit $1,000 and then use the credit card to make purchases. You'd pay the purchases off like any other credit card, but your deposit covers the issuer if you miss payments.

This activity is reported to credit bureaus and can impact your credit score, which makes it a great way to rebuild your credit when it's challenging to qualify for other lending products.

Consider some of the following secured and unsecured business credit cards for bad credit to get qualified even with poor credit.

Bank of America Business Advantage Unlimited Cash Rewards Secured Credit Card

Ideal for companies trying to build up business credit, the Bank of America Business Advantage Unlimited Cash Rewards Secured Credit Card earns 1.5% cash back on every purchase with no annual cap. You'll provide a $1,000 minimum security deposit and get a credit line equivalent to your deposit. Make your payments on time to see improvements to your business credit score.

This card gives you access to online business tools that integrate with your payments, transfers, and QuickBooks transactions. Combined with free access to your business credit scores, your Bank of America secured card helps you build your credit and directly integrates with the financial tools your business needs to manage expenses.

Capital One Spark 1% Classic: A Reliable Choice

Built for those with a fair credit rating or greater, Capital One Spark 1% Classic lets you earn unlimited 1% cash back for your business even if you're rebuilding credit. With no annual fee and free employee cards, you can set up your team without additional costs.

Benefit from the generous cashback rate and Capital One travel booking and rewards. Save while abroad with no foreign transaction fees, and get help on the road with included roadside assistance. A reliable choice from a trusted name, Spark 1% Classic could be right for your business.

Discover it Secured: Earning While Building Credit

Earn rewards on this secured card to maximize your time spent building up your credit. Businesses can earn 2% cash back on spending at gas stations and restaurants up to $1,000 per year and 1% on all other purchases. Earn 2x cash back at the end of your first year.

Discover makes it simple to move from a secured to an unsecured card and get your deposit back. After seven months of using your secured card, you'll be eligible for automatic reviews for this upgrade.

Ramp Visa Corporate Card

Ramp Visa Corporate Card sets your credit limit based on the revenue or capital you've raised for your business. This can be helpful for companies who are building or rebuilding their credit but want to get a bigger credit limit than they could get elsewhere.

FNBO Business Edition® Secured Mastercard® Credit Card

Make a secured card work for you with the FNBO Business Edition Secured Mastercard Credit Card when you request your credit limit (with accompanying deposit) between $2,000 and $10,000 once approved. You can also earn interest on your security deposit, but the FNBO card does have a $39 annual fee.

Brex Card

The Brex Card for businesses assesses the current health of your business rather than your credit score when approving your account. This can be a good choice when looking for small business credit cards for bad credit.

Brex operates on the Mastercard network, ensuring you can spend virtually anywhere you need to. Earn 7x rewards that you can use as cash back, credits to your account, or to spend on things like billboards for your business.

Alternative Options: Prepaid Debit Cards

To facilitate easy digital spending, your business may consider using prepaid debit cards instead of trying to qualify for a business credit card while working on your credit score. These are cards that you can load money on and then use anywhere you could use a credit card.

The money debits from the preloaded amount, so it's essential to track your spending and make sure enough is in the account.

No interest accrues on a borrowed amount like with a credit card. This offers a favorable alternative for business members who cannot find a business credit card that works for them or who don't want to be charged interest on a credit card balance. However, prepaid debit cards do not report to credit agencies like secured cards, so you would see no boost to your score for this usage.

Business Credit Cards with No Credit Check Requirements

Some business credit cards with no credit check include:

• Brex
• Ramp
• BILL Divvy Credit Card (Soft check only)

Certain lenders may approve you for a business credit card without checking your credit history if you can show that your business' finances are in good shape.

Tips for Improving Your Credit Score

Even if your business cannot qualify for a credit card right now, it's still worth improving your credit score so you can qualify for the business credit you need in the future. To improve your credit, consider:

• Paying down any existing balances: Your debt can impact your ability to get more credit at better rates, impacting your score.
• Pay your full balance each month: Rotating balances can impact your credit utilization and lower your score.
• Keep old accounts open: Even if you're not using an old account, leave it open. Credit history length is a part of your credit score.
• Request credit limit increases: A wider limit-to-balance ratio lowers your credit utilization rate even if you don't plan to use an increased limit.
• Open a variety of accounts: A good way to show creditworthiness is to have a few different types of credit, such as a vehicle loan or business credit card.

You can increase your chances of getting a business credit card with poor credit if you offer collateral or get a cosigner.

Choose the Right Card for Your Business Needs with Money Atlas

When choosing the right card for your business, use Money Atlas to narrow down the best business credit cards for bad credit. Money Atlas can give you expert comparisons for all credit cards available to you. Get the stats on rewards, rates, and fees all in one place so you can pick the business card that fits your credit profile and spending needs.