The 9 Best Small Business Credit Cards for Bad Credit

Business people are always on the run, trying to stock their stores with the necessary goods to ensure that they tap all the potential customers. Small businesses starting operations also struggle to stand on their own due to inadequate funds. For you to be on the safe side, you need a business credit card to purchase goods in demand even when you do not have enough cash. If you have bad credit, then there are small business credit cards for bad credit that can help you.

As a business owner, you need to have the intelligence to operate a business; otherwise, you might fail terribly. Having a credit card saves you from abrupt fall as a result of a loss. You can always borrow from your bank via the credit card and pay later, as agreed. As I mentioned before, it is possible to get a credit card irrespective of your credit score. Getting a secured credit card does not require you to have a credit history, a good credit score, or an excellent credit report.

You should have an account with your bank to get a credit card. With good credit scores, you can get a credit card with a free online checking account with no opening deposit. However, if you have bad credit, you can get a secured credit card, whereby you have to make a certain deposit, depending on the limit you want. The deposit you make is still your money, as it is just there to act as security of any credit limit you get. Furthermore, depositing cash into your account to work as security is a way of saving.

Why should you get a small business credit card for bad credit?

There are various reasons you should get a credit card to run your business. These include the following.

i) To build your credit score

For instance, bad credit cards are useful when you want to build your credit score. Sometimes you may fall into bad credit due to late payments of debts. Defaulting can also land you into a bad credit situation. Getting a bad credit card and utilizing it well can help you to increase your scores with time.

ii) Pay for goods and services

If you have a credit card, the payment of goods and services becomes very easy. You do not need to carry a lot of cash to purchase stock for your shop, hotel, bar, or any other kind of business. Furthermore, carrying huge money is risky, as you may encounter robbers. The funds can also get lost as you walk around. Even if you lose your card, you just need to replace it with another one.

iii) Send money to someone else

With the card, you can send money from your checking account instantly. Most credit cards are easy to manage online using an app. If you want to send money to someone else, you just log in to your account and enter the details of the recipient’s as well as the amount to send and authorize the transaction.

iv) Withdraw money from ATM

If you need cash, you can use the card to withdraw money from your bank account. It does not matter which bank’s ATM you are using as long as it accepts the card.

How many types of credit cards can you find in financial institutions?

There are two main types of credit cards available in the market. You can have secured or unsecured credit cards. Both cards look the same, although different in the way you acquire them.

i. Secured credit cards

Secured credit cards require you to deposit before getting the card whereby the amount of money you deposit acts as collateral. Financial Institutions allow you to borrow up to an amount equal to your deposit, or a certain percentage of the deposit. Later, the bank may avail the deposit for use if you prove responsible. Secured credit card issuers do not bother about your credit score.

ii. Unsecured credit cards

Unsecured credit cards do not require you to make a deposit. Here, you only need a credit history. Different credit card issuers prefer fair to excellent credit scores to give you a credit card. However, others are ready to provide you with credit cards no matter how bad your credit score is. You can get instant credit card approval for bad credit no deposit from various financial institutions that are ready to help you grow financially.

iii. Bad credit cards

Bad credit cards have high-interest rates as well as numerous charges that apply. You may find them expensive to use, but they are essential if you want to gain your previous position of proper credits.  Again, most of the cards have low credit limits.

However, your credit limit increases slowly with time. Remember that your credit score increases with time. A time comes when you have satisfactory scores to the extent that you can open a bank account with no deposit required when getting a credit card.

How can you build your credit scores?

There are various ways you can improve your credit scores, and especially when you have fallen into a wrong score category. Some of the best approaches to increase your scores are as follows.

1) Pay your debts on time

Late payments have a significant negative impact on your credit score. Always ensure that you pay your debts on the due date.

2) Mix credits

You can have different credits, such as credit cards, mortgage loans, and personal loans, among others. Mixing credits help you to increase your credit score.

3) Apply for credit builder loans

If you have no credit history, you can check for banks with free checking accounts with no deposit and open an account with them. After that, you can request a credit builder loan to help you build your credit scores.

A credit builder loan requires you to deposit a certain amount of money and borrow a similar amount of money as a loan and repay slowly to build your credit. After you finish repaying your loan, you can get your money back.

4) Get a second chance checking account

Even though many banks deny you a second chance checking with no opening deposit when you have a bad credit history, there are institutions out there who can allow you to open an account. Look for them and get an account. Ensure that you settle with your previous bank as well to start anew.

Which are the 9 best small business credit cards for bad credit?

The following are the nine best small business credit cards for bad credit.

1. The Brex Mastercard Corporate Credit Card for Startups

Upon getting this credit card, you benefit from various rewards depending on how you use it. You will be able to get 7 points for each $1 you spent buying at vendors in Brex’s remote collaboration tools bundle, such as Zoom, Slack, Gong, and GoToMeeting.

Moreover, you get 3 points for each $1 you spent purchasing in Brex’s food delivery bundle, including Caviar, DoorDash, Uber Eats, and Grubhub. Also, you get 2 points for each $1 you spent on all recurring software purchases. Above all, you get one point on every $1 you spend at any other place. The card attracts a regular fee of $5 every month. Apply here

2. U.S. Bank Business Cash Rewards World Elite Mastercard

The card is another option for a small business. You will benefit from various rewards upon getting the card. Earn 3% cashback on all eligible net gas stations, cell phone or service provider purchases, and office supply stores. You will also earn 1% cashback on all other eligible purchases you make at various stores.

Also, you’ll always receive a 25% annual cashback bonus. You can earn up to $250 from cashback alone. Interestingly, you can earn as much as possible. Redeem your points anytime, as there are no minimum redeemable points.

Also, remember that you will be able to earn up to $500 bonus after spending $4,500 in all eligible purchases during the first 150 days of account opening. The card has no annual fees. Apply here

3. CitiBusiness / AAdvantage Platinum Select World Mastercard

Currently, the card issuer has a limited offer of 70,000 bonus miles after spending $4,000 in all eligible purchases within the first four months of account opening. Again, you get 2 AAdvantage miles rewards per $1 spent on American Airlines purchases. Also, you get 2 miles per $1 you spent on Telecommunications (cell phones and plans), cable and satellite providers, and car rental merchants and Gas stations.

You will also earn an unlimited one mile per $1 on all other purchases made. The card has no introductory APR. The annual fee is $99 after the first year, and all foreign transactions are free. Above all, the card has many other benefits when you use it at American Airlines. Apply here

4. U.S. Bank Business Platinum Card

The card doesn’t offer rewards nor does luxe cardholder perk. It has no sign-up bonus whatsoever. However, it has a strong 0% APR promotion for purchases as well as balance transfers. Moreover, the card has no annual fee. Yet, you will part with 3% of any foreign transaction you undertake.

Again, you will enjoy a 0% APR for 20 months starting from account opening. It will apply to purchases and balance transfers. Afterward, the regular variable APR will apply. It will be 9.99% to 17.99%, depending on your creditworthiness. The prevailing interest rates will also apply. Apply here

5. Chase Ink Business Unlimited Credit Card

Get this card and enjoy a $500 sign-up bonus when you spend $3,000 in purchases within three months and unlimited 1.5% cash on eligible purchases. The card issuer does not charge any annual fee. You also benefit from a 0% introductory APR promotion on purchases for 12 months. Again, the foreign transaction fee is 3%, while cash advances cost $15 or 5%, whichever is greater. The balance transfer costs $5 or 5%, whichever is greater.

There are, the regular APR will be 14.74% to 20.74% depending on the current interest rates as well as your creditworthiness. Another benefit of having this card is getting and a 1-year extended warranty on all items with existing and eligible warranties of 3 years or less. Apply here

6. Chase Ink Business Preferred Credit Card

When you successfully sign up for this card, you get a 100,000 point sign-up bonus when you spend at least $15,000 within three months of account opening. You also get 3x points on travel, shipping, telecommunications & advertising. The card also attracts an annual fee of $95 starting from the first year. Again, you get a massive sign-up bonus worth up to $1,250 for free travel.

Other purchases earn you unlimited 1 point per $1 spent. You can redeem your earned points for some cash, travel, gift cards, Amazon.com purchases, and general merchandise, among others. Note that the regular card APR is 17.49% to 22.49% variable, depending on the current interest rates as well as your creditworthiness. The cash advance APR is 26.49%, which is variable. Apply here

7. American Express Blue Business Cash Card

Upon getting this card, you will enjoy a 2% cash back for the first $50,000 in all eligible purchases per year. The cashback will automatically come as a statement credit on the second statement after earning it.The American Express Blue Business Cash Card charges you 0% introductory APR for the first 12 months. The card has no annual fee. However, the foreign transactions cost is 2.7% while late, and returned payments can cost up to $39.

Also, the card’s regular APR varies between 13.24% to 19.24%, depending on the current interest rates and personal creditworthiness. Moreover, the card has a Purchase Protection plan which sees reimbursement for purchased items that are lost, stolen, or damaged within 90 days of purchase. Apply here

8. Business Platinum Card from American Express

Upon getting this card, you will enjoy 75,000 points as a welcome offer after spending $15,000 on all eligible purchases in the first three months. Again, you will earn 5x points on airfare & hotels you book through Amex Travel. Understand that the card is a charge card and requires full balance payment on the due date. It doesn’t have regular interest charges.

The standard perks with this card include $200 statement credit for purchases made with any airline of your choice, complimentary access to more than 1,100 airport lounges worldwide via the American Express Global Lounge Collection, and free WiFi at more than 1 million Boingo hotspots globally. Again, you will always get a 35% bonus when using Membership Rewards points to book on eligible airlines. Apply here

9. The Blue Business plus Credit Card from American Express

Sometimes back, the card used to earn you 2X points on up to $50,000 in all eligible purchases per year. However, the offer is no longer available. Other offers currently available include a long 0% APR introductory promotion. The card has no annual fees. However, you have to pay a foreign transaction cost of 2.7%. The balance transfers cost $5 or 3%. Any late and returned payments cost up to $39.

The Introductory APR is 0% APR on purchases for 12 months from the first day of the account opening. Again, regular variable APR applies, based on your creditworthiness and the current interest rates. Also, you will get a 12-month extended warranty on items covered by manufacturers’ warranties of five years and below. Apply here

Bottom Line

Business credit cards for bad credits not only help you to finance your business but contribute a lot to your credit increment. You only need to utilize it properly. Other benefits, such as cash backs and points, also make the cards suitable to have. You should check to acquire cards that have fewer fees. To increase your credit limit, always ensure that you pay your debts on time.