Are you on the hunt for the best business credit cards that cater to your low credit score? Look no further! We understand finding the perfect card can be a daunting task, especially when your credit score isn't quite up to par. But, fear not! At Flik Eco, we've got you covered. In this article, we'll break down the best business credit cards for low credit scores and help make your financial life a little easier.
Best Business Credit Cards For Low Credit Score Table of Contents
Understanding Credit Scores and Business Credit Cards
Understanding Credit Scores and Business Credit Cards
Before diving into the best business credit cards for low credit scores, it's essential to understand what a credit score is and how it impacts your eligibility for a credit card. Credit scores range from 300 to 850, with higher scores indicating better creditworthiness. A low credit score can be caused by late payments, high credit usage, or a limited credit history. When considering a business credit card, issuers will evaluate your personal credit score to determine your approval likelihood and the card's features, such as interest rates and rewards.
What Is Considered a Low Credit Score?
- 300-579: Very Poor
- 580-669: Fair
- 670-739: Good
- 740-799: Very Good
- 800-850: Excellent
If your credit score falls within the "fair" or "very poor" range, you may have limited options regarding business credit cards. However, we have compiled a list of the top business credit cards designed to help those with low credit scores.
Best Business Credit Cards for Low Credit Scores
1. Capital One Spark Classic for Business
This card is an excellent choice for business owners with fair credit (credit score around 580-669). It offers:
- Unlimited 1% cash back on every purchase
- No annual fee
- Free employee cards
2. Wells Fargo Business Secured Credit Card
This secured business credit card is perfect for those with very poor to fair credit scores (around 300-669). It requires a security deposit, which can help increase your credit limit and improve your credit score over time. The card offers:
- 1.5% cashback on every purchase
- $25 annual fee per card
- Credit lines from $500 to $25,000, depending on your security deposit
3. BBVA Compass Secured Visa Business Credit Card
The BBVA Compass Secured Visa Business Credit Card is another excellent option for those with very poor to fair credit scores (approximately 300-669). The card features:
- 1x point per dollar spent on eligible purchases
- Flexible credit limits based on security deposit
- Free employee cards with customizable spending limits
Improving Your Credit Score for Better Card Options
While these cards cater to low credit scores, improving your credit can open up opportunities for more rewarding business credit cards. Here are a few tips to help you boost your credit score:
- Pay your bills on time, every time
- Keep your credit card balances low
- Limit your number of credit inquiries
- Regularly check your credit report for errors
Best Business Credit Cards For Low Credit Score Example:
Imagine you own a small business, and your credit score is currently at 650. You've worked hard to increase your score from an earlier period of financial difficulty, but still only fall into the "fair" credit range. By choosing to apply for the Capital One Spark Classic for Business card, you can take advantage of the unlimited 1% cashback on purchases while working to improve your credit score further.
If you're a business owner with a low credit score, don't feel defeated. There are great business credit card options for you. By choosing the right card and continuing to focus on improving your credit score, you can look forward to even better financial opportunities down the road. Be sure to share this article with fellow business owners, and keep exploring Flik Eco for more helpful guides on all things finance!
