Are you a business owner with average credit struggling to find a suitable credit card? Look no further! This article will break down the best business credit cards for average credit and provide you with all the essential information you need to make an informed decision. We understand the challenges of navigating the world of credit cards, and we're here to help you make the most of your financial tools. Let’s dive in!
Business Credit Cards For Average Credit Table of Contents
Understanding Business Credit Cards for Average Credit
When applying for a business credit card, credit scores play an essential role in determining your eligibility and the benefits you receive. While having excellent credit can open the door to more premium cards, many options cater to those with average credit, also referred to as "fair" credit.
What is Average Credit?
Average credit typically refers to a credit score that ranges from 580 to 669. It occupies the middle ground between poor credit (below 580) and good credit (above 669). An average credit score could result from a variety of factors, including limited credit history, high credit utilization, or past payment difficulties.
Features to Consider in a Business Credit Card
- Annual Percentage Rate (APR): Since average credit scores lead to higher interest rates, select a card with a competitive APR or a 0% introductory APR for a limited period
- Rewards: Look for cashback, points, or miles that align with your business spending habits to maximize your rewards
- Fees: Assess your options for cards with low or no annual fees to minimize costs
- Additional Benefits: Cards may offer perks such as free employee cards, purchase protection, or extended warranty that add value
Best Business Credit Cards for Average Credit
- Capital One Spark Classic for Business: This card offers unlimited 1% cash back on all purchases, no annual fee, and no foreign transaction fees. It's an excellent option for business owners aiming to build their credit while benefiting from a rewards program
- Wells Fargo Business Secured Credit Card: With a minimum security deposit of $500, this card is ideal for businesses with limited credit history. It offers 1.5% cashback on all purchases, a $0 annual fee for the first year, and a $25 annual fee thereafter
- BBVA Compass Visa Business Rewards Credit Card: This card offers customizable rewards and a 0% introductory APR for nine months. There's no annual fee, adding to its allure for those with average credit
Business Credit Cards For Average Credit Example:
Consider a small business owner, Jane, who operates a boutique and has an average credit score of 650. After evaluating her options, she decides on the Capital One Spark Classic for Business credit card. This card aligns with her goals of building credit, and the cashback rewards will benefit her in the long run.
Over the next year, Jane uses her card for inventory purchases, accumulating $20,000 in spending. Thanks to the 1% cashback rewards program, she earns $200 in cashback rewards that can be reinvested into her business. As she maintains on-time payments and keeps her credit utilization low, her credit score gradually increases, opening up opportunities for even better credit card offers in the future.
Now that you have a comprehensive understanding of the best business credit cards for average credit, you're one step closer to making an informed decision for your business. Explore these options and find the perfect card to align with your business needs and financial goals. Remember, responsible credit habits can lead to improved credit scores and even better offers in the future.
We hope this guide was helpful, and we encourage you to share this article with fellow business owners who could benefit from it. For more personal finance and investing tips, continue exploring Flik Eco's extensive library of content. Your success is our success!
