Starting a new business can be both exhilarating and daunting. With so many factors to consider, having a reliable business credit card becomes essential for managing your expenses. However, for those entrepreneurs with fair credit, finding the best options may seem overwhelming. Fear not, startup enthusiasts! We've done the research for you and compiled a list of the best business credit cards that cater to startups with fair credit. In this blog post, we'll break down the advantages of each card and help you determine which one is best suited for your flourishing venture.
Best Business Credit Cards For Startups With Fair Credit Table of Contents
1. Capital One Spark Classic for Business
As one of the most popular options for businesses with average credit, the Capital One Spark Classic for Business offers a straightforward rewards program, security features, and tools to help manage your expenses. This card is a solid choice for startups seeking a no-frills credit card solution that gets the job done.
- No annual fee
- 1% cashback on all purchases
- Free employee cards
- Automatic fraud alerts and security notifications
2. Wells Fargo Business Secured Credit Card
Perfect for those who want to build or rebuild their credit, the Wells Fargo Business Secured Credit Card allows you to choose between cashback or rewards points. This card also provides the spending flexibility and security businesses with fair credit need to grow.
- $25 annual fee per card
- 1.5% cashback or 1 reward point per dollar spent
- High credit limit up to $25,000
- Zero liability protection for unauthorized purchases
3. BBVA Compass Secured Visa Business Credit Card
This secured business credit card option from BBVA is ideal for startups that require the flexibility to carry a balance while enjoying a lower interest rate. With rewards points and additional security benefits, the BBVA Compass Secured Visa Business Credit Card is a sensible choice for businesses with fair credit.
- $40 annual fee (waived for the first year)
- 1 reward point per dollar spent
- Low variable APR for those who plan to carry a balance
- Additional protection, including customizable spending limits and purchase alerts
Best Business Credit Cards For Startups With Fair Credit Example:
Imagine you're starting a small digital marketing agency and need a business credit card to manage your expenses for various software subscriptions, employee reimbursements, and office supplies. Given your fair credit standing, you select the Capital One Spark Classic for Business card because there's no annual fee, and you can take advantage of the cashback rewards.
In the first month, you spend $2,500 on various expenses, earning 1% cashback, equal to $25 on your purchases. Your Spark Classic card not only aids in managing your expenses but begins to contribute to your growing business' profitability. Plus, as your credit score improves with responsible use, you'll become eligible for better business credit cards, offering even greater rewards and benefits as your agency blossoms.
Now that you're armed with the knowledge of the best business credit cards for startups with fair credit, you can make a more informed decision on which one to apply for. Remember, as your business grows and your credit improves, you can reassess your credit card choices and switch to one that offers even more lucrative rewards.
We hope this guide has empowered you to take control of your startup's finances and make confident decisions. If you enjoyed this article, please share it with your fellow entrepreneurs, and don't hesitate to explore more financial insights on Flik Eco.
