Advertiser Disclosure

🏦 Get funded today with one of our top 5 lenders for 2020

Improve Your Credit Score With One Of These Business Credit Cards For Bad Credit

  • No comments
  • Updated on:
Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.

It’s no secret that having bad credit brings serious complications to your life. This is doubly true if you’re trying to start your own business, which is when access to credit is of paramount importance. That’s why we’ve compiled a list of business credit cards that specifically cater to entrepreneurs with big dreams but poor credit scores.

Unfortunately, bad credit will impact your ability to qualify for the top-tier cards with solid rewards and great perks. However, there are still cards out there to help folks suffering from a low credit score. By utilizing these cards wisely, you’ll be able to boost your score — potentially giving you the option to apply for fancier cards down the line.

Your credit score shouldn’t determine your ability to turn your business dreams into reality. The below credit cards could help you sidestep bad credit and give your business the kickstart it needs.

Learn More About Our Top Picks

CompanySummaryNext Steps
Best unsecured credit card for business use.

Visit Site

Read More

Best unsecured credit card for business use.

Visit Site

Read More

Best unsecured personal credit card for rebuilding credit.

Visit Site

Read More

Best secured personal credit card for rebuilding credit.

Visit Site

Read More

Read more below to learn why we chose these options.

1. Best Unsecured Business Credit Card

Spark® Classic from Capital One®



Visit Site

Read our Review

Spark® Classic from Capital One®



Visit Site

Annual Fee:


$0

 

Purchase APR:


24.49% (variable)

Here’s a card for the credit-challenged that doesn’t feature too many overwhelming frills: the Spark Classic from Capital One.

The Spark Classic is marketed by Capital One as a business card for people with “average” credit. It carries a high APR of 24.49% (variable), which is one of the card’s main drawbacks.

On the plus side, you’ll earn an unlimited 1% cash back on every purchase. Now, there are plenty of business credit cards that will see you earning cash back at a higher rate. However, the vast majority of those cards are not available to those with more modest credit ratings. The card also carries no annual fee, no foreign transaction fee, and you can get additional employee cards at no extra cost.

As for benefits, you’ll get an auto rental collision damage waiver, travel and emergency assistance services, fraud coverage, and purchase security.

Another benefit of the Spark Classic is that Capital One will report your card activity to several business credit bureaus. This way, you can improve your business credit score if you regularly make your payments on time.

Read our in-depth review

Jump back to comparison chart

2. Best Secured Business Credit Card

Wells Fargo Business Secured Credit Card



Visit Site

Read our Review

Wells Fargo Business Secured Credit Card



Visit Site

Annual Fee:


$25 per card

 

Purchase APR:


Prime + 11.90%

The Wells Fargo Business Secured Credit Card, as the name suggests, is a business card that requires a security deposit that establishes the amount of your credit line.

A deposit of at least $500 is required, though you can deposit as much as $25,000. The card is available to US citizens, permanent residents, and nonresident aliens. It’s also another card that reports your card activity to the credit bureaus, thus helping you build your business credit (assuming you make your payments on time!).

The card’s purchase APR is Prime + 11.90%. You’ll have to pay an annual fee of $25, which — while not as nice as a $0 annual fee — is lower than the yearly charge of many cards. You can get up to 10 employee cards, but each card will be subject to that same $25 annual fee. Frequent flyers will like the lack of a foreign transaction fee.

As for rewards, you can choose to get either cash back or reward points. Choose cash back, and you’ll get 1.5% cash back on every $1 spent. Choose reward points and earn one point on every $1 spent and receive 1,000 bonus points when your company’s spending is $1,000+ in any monthly billing period.

If you make your payments on time, you may eventually become eligible for an upgrade to an unsecured Wells Fargo business card, in which case your security deposit will be refunded to you.

Read our in-depth review

Jump back to comparison chart

3. Best Unsecured Personal Credit Card

Credit One Platinum Visa For Rebuilding Credit



Visit Site

Read our Review

Credit One Platinum Visa For Rebuilding Credit



Visit Site

Annual Fee:


$0 - $95 for the first yea; $0 to $99 thereafter

 

Purchase APR:


19.49% - 25.49% (variable)

The Credit One Bank Platinum Visa for Rebuilding Credit isn’t a business credit card, but it certainly can be used by entrepreneurs with iffy credit as a credit card option. Should they, though? Let’s explore.

The Credit One Bank Platinum Visa (notice that it’s Credit One, not Capital One) carries an APR of 19.49% - 25.49% (variable), which is relatively average for a poor-credit card. Note that only certain accounts will be given a grace period as far as interest goes. Without the grace period, interest will start accruing on your purchases immediately, regardless of whether you pay off your entire balance by the due date.

What’s most unfortunate about the Credit One Bank Platinum Visa, however, is the fact that you’ll owe an annual fee of up to $99 (with a cap of $95 your first year). The exact rate of your annual fee will depend on your creditworthiness. That means the primary audience of this article will likely be paying a fairly high fee each year.

The nicest benefit of the card is undoubtedly the 1% cash back you’ll earn on gas, groceries, mobile phone plans, and cable, internet, and satellite TV services.

There’s also a $19 charge to add another authorized user; this will come into play if you want to add an employee to your account. Lastly, there’s a 3% foreign transaction fee (with a minimum $1 charge) to keep in mind. So while using the Credit One Bank Platinum Visa for Rebuilding Credit will see you earning cash back (always a nice bonus for a card aimed at those with poor credit), it might not be the most friendly card for some users.

Get Started with Credit One Platinum Visa For Rebuilding Credit

Read our in-depth review

Jump back to comparison chart

4. Best Secured Personal Credit Card

Discover it Secured



Visit Site

Read our Review

Discover it Secured



Visit Site

Annual Fee:


$0

 

Purchase APR:


24.49% (variable)

Discover it Secured is a secured (surprise!) consumer credit card that can be used for business. The minimum deposit is just $200, while the max reaches up to $2,500. Discover markets that this card is specifically designed for those looking to rebuild or start their credit history.

You can expect a high-ish APR of 24.49% (variable), and the card carries a grace period of 25 days until interest on purchases starts to accrue. That means if you pay your card off in full before the payment due date each month, you’ll avoid interest on purchases.

On the plus side, Discover requires no annual fee for this card. There’s also a lack of a foreign transaction fee, a boon for anyone who travels abroad.

For rewards, expect 2% cash back at gas stations and restaurant (up to $1,000 per quarter). This 2% rate is among the highest you can snag for poor-credit cards. All other purchases get 1% cash back. On top of those base rewards, Discover will match whatever you earn for your first year — effectively giving you 4% back on gas station and restaurant purchases and 2% everywhere else.

Read our in-depth review

Jump back to comparison chart

Business Credit Cards For Bad Credit FAQs

Getting a credit card is never easy, and this is especially true when you have a poor credit history. Here are a few common questions about credit cards for poor-credit users:

Is A Secured Or Unsecured Card Better For Building Credit?

Strictly in terms of building credit, an unsecured card is better because issuers will more consistently report your activity to bureaus. However, it may be easier to qualify for a secured card, and secured cards can still provide an avenue to building and bettering your credit history.

What’s The Difference Between Personal & Business Credit Cards?

Business cards may offer rewards or benefits targeted towards business spending habits. For instance, a business card may provide a higher rewards rate for spending money on office supplies, or one might allow you to request employee cards for free. Additionally, business credit card issuers may report your activity to business credit bureaus. In contrast, personal credit card history only gets sent to consumer bureaus.

Otherwise, these types of cards are rather similar. Many offer rewards and benefits as well as ways to carry a balance. Note, however, that issuers of business credit cards may ask specific questions about your business.

Entrepreneurs and business owners can use personal credit cards for business purchases, but there are some general guidelines you should follow to make sure you are utilizing your credit card in a way that will best benefit your business. Learn more about best practices for when using personal cards for a business in our guide.

How Do I Use A Credit Card To Build Credit?

The biggest key to improving your credit with a credit card is to always pay off your monthly balance. By doing so, you’ll show creditors that you are a trustworthy borrower. Once you’ve successfully paid off your balance with a credit card for a while, you may be able to graduate to better cards or apply for low-interest-rate loans.

For more tips on building credit with a credit card, check out our article on the topic.

Didn’t Find What You Were Looking For? Take A Look At Our Other Business Credit Card Resources

If you want more details on how to build credit with a credit card, we’ve got an article for you. Or should you need a step-by-step guide to getting a credit card, Merchant Maverick has you covered there too. Finally, if none of the above options fit your business, take a second to look over our favorite small business credit cards.

In Summary: Best Business Credit Cards For Bad Credit

  1. Spark® Classic from Capital One®: Best unsecured credit card for business use.
  2. Wells Fargo Business Secured Credit Card: Best unsecured credit card for business use.
  3. Credit One Platinum Visa For Rebuilding Credit: Best unsecured personal credit card for rebuilding credit.
  4. Discover it Secured: Best secured personal credit card for rebuilding credit.
Jason Vissers

Jason Vissers

Jason Vissers is a writer and cereal chef from San Diego. He graduated with a Political Science degree from San Diego State University in 2001. He's been writing about website builders, crowdfunding sites, online lenders, and credit cards for Merchant Maverick since 2015. Additionally, Jason can't eat raisins.
Jason Vissers
Leave a comment

No Comments

Responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

Leave a Reply

Your email address will not be published. Required fields are marked *

Your Review

Comment moderation is enabled. Your comment may take some time to appear.
Please read the "User Review and Comment Policy" before posting.

Share

Featured Offer: We Recommend QuickBooks 🎉

Get 50% QuickBooks Online for a limited time!

Take it for a spin with a free trial.

Try QuickBooks Today

We Recommend Fattmerchant 🏆

Fattmerchant is one of our top picks for credit card processing!

 

 

We love Fattmerchant's predictable pricing and excellent service.

Get Started

Get started with no commitment today.

We Recommend Brex Corporate Card for Startups 🏆

Brex Corporate Card for Startups is one of our top picks for business credit cards!

 

 

For a limited time get 50,000 rewards points when you spend $1000 with Brex.

Get Started

Get started with no commitment today.

We Recommend PaymentCloud 🏆

PaymentCloud is one of our top picks for credit card processing!

 

 

We love PaymentCloud's predictable pricing and excellent service.

Get Started

Get started with no commitment today.

We Recommend PaymentCloud 🏆

PaymentCloud is one of our top picks for credit card processing!

 

 

We love PaymentCloud's predictable pricing and excellent service.

Get Started

Get started with no commitment today.

⭐️ Featured Promo! ⭐️

Sign up now and qualify for a limited time deal!

Standard Plan: One month free ($29.95 value)
Plus Plan: Two months free ($159.90 value)
Pro Plan: Three months free ($899.85 value)

Learn More

At BigCommerce

We Recommend Helcim 🏆

Helcim is one of our top picks for payment processing!

 

 

Helcim has exceptional service and an advanced platform that we highly recommend for businesses in Canada and the US. Get three months free when you sign up with Helcim through our links!

Get Started

Get started with no commitment today.

We Recommend PaymentCloud 🏆

PaymentCloud is one of our top picks for credit card processing!

 

 

We love PaymentCloud's predictable pricing and excellent service.

Get Started

Get started with no commitment today.

We Recommend OnDeck 🏆

OnDeck is one of our top picks for Business Loans!

 

 

OnDeck is our featured vendor for business loans and lines of credit. If you have at least one year in business, a personal credit score of 600 or higher, and $100K in annual revenue, OnDeck is ready to help your business get funded.

Get Started

Get started with no commitment today.

Get 50% Off FreshBooks ✨

FreshBooks accounting is offering 50% off of their accounting and invoicing software for three months and a 30-day free trial!

Start For Free

No credit card required

We Recommend Square POS 🏆

Square POS is one of our top picks for Point of Sale!

 

 

Square is free to use and include a free card reader at sign up! No credit card required to create your account.👌

Get Started

Get started with no commitment today.

We Recommend Fundera 🏆

Fundera is one of our top picks for SBA loans!

 

 

Fundera is a free-to-use marketplace that allows you to compare lenders side-by-side. Easily find SBA 7(a)loans alongside other financing options.

Get Started

Get started with no commitment today.

We Recommend ShippingEasy 🏆

ShippingEasy is one of our top picks for shipping software!

 

 

ShippingEasy got a 5-star review from our team. Get a 30-day free trial to access discounted USPS and UPS shipping rates and print labels in no time. No credit card required.

Get Started

Get started with no commitment today.

We Recommend Square POS 🏆

Square POS is one of our top picks for Point of Sale!

 

 

Square is free to use and include a free card reader at sign up! No credit card required to create your account.👌

Get Started

Get started with no commitment today.


 

Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.

Sign up for the Maverick Newsletter

  • We occasionally send out emails with special offers.