As a small business owner, navigating the world of credit cards can be challenging, especially if you have bad credit. But fear not! It's still possible to find the best credit cards that can support your business needs and help you build your credit back up. In this article, we'll explore the top credit cards for small business owners with bad credit and show you how to make the best decision for your financial future.
Best Credit Cards For Small Business Owners With Bad Credit Table of Contents
Understanding Credit Cards for Bad Credit
Before diving into the best credit cards for small business owners with bad credit, it's essential to understand what "bad credit" means. A bad credit score typically ranges from 300 to 579, according to FICO. This score can limit your access to financial products, such as loans and credit cards, making it more difficult for you to grow your business.
However, credit card issuers also offer options specifically designed for individuals with poor credit. These cards may have higher interest rates, lower credit limits, or require a security deposit. But, they can be a crucial stepping stone in rebuilding your credit and gaining access to better financial products in the future.
Best Credit Cards for Small Business Owners with Bad Credit
1. Capital One Spark Classic for Business
- Unlimited 1% cash back on every purchase
- No annual fee
- Regular reporting to the three major credit bureaus to help build your credit
The Capital One Spark Classic for Business is an excellent option for small business owners with fair to poor credit. It offers the perk of unlimited 1% cash back on every purchase, without any annual fee. This card helps you build your credit by reporting your activity regularly to the three major credit bureaus.
2. Wells Fargo Business Secured Credit Card
- 1.5% cash back on every purchase or rewards points
- $25 annual fee per card
- Security deposit equal to your credit line
As a secured credit card, the Wells Fargo Business Secured Credit Card requires a security deposit equal to your credit line. This card offers 1.5% cash back on every purchase or rewards points, depending on the program you choose. With a $25 annual fee per card, it's a solid option for rebuilding credit while earning rewards.
3. Bento for Business Visa® Debit Card
- Prepaid debit card with individual spending limits for employees
- Integrated expense management tools
- Free trial available
If you're not able to qualify for a credit card, the Bento for Business Visa® Debit Card is a prepaid debit card option for small business owners. This card allows you to set individual spending limits for employees and offers integrated expense management tools. Plus, there's a free trial available to see if it's the right fit for your business.
Best Credit Cards For Small Business Owners With Bad Credit Example:
Jane is a small business owner who has struggled with poor credit due to past financial mistakes. She knows that having a credit card is crucial for managing her business expenses and improving her credit score. After doing some research, Jane decides to apply for the Capital One Spark Classic for Business.
Her application gets approved, and she starts using the card responsibly by making small purchases and paying them off in full every month. Over time, she notices her credit score begin to improve, thanks to the card's regular reporting to the three major credit bureaus. Now Jane is in a better position to access more financing options for her business, and she's also enjoying the benefits of the 1% cash back program.
Bad credit doesn't have to hold your small business back. By exploring the options available to you and choosing the right credit card for your needs, you can rebuild your credit and enjoy the perks that come with responsible credit card use. If you found this guide helpful, be sure to share it with your fellow business owners, and don't forget to explore the other insightful articles on Flik Eco to help you navigate the world of personal finance and investing.
