Business Credit Cards For New Business With Bad Credit

Starting a new business is exciting and challenging, especially when dealing with finances. One aspect many entrepreneurs overlook is securing a business credit card, which can offer ease in managing expenses and rewards. But what if you have bad credit? Don't worry! In this comprehensive guide, we at Flik Eco will break down the best business credit cards for new businesses with bad credit, providing you with the knowledge you need to make an informed decision.

Why You Need a Business Credit Card

Regardless of your personal credit score, a business credit card offers several benefits to help manage and grow your new venture:

• Separating personal and business finances: This makes it easier to track expenses and ensures accurate tax reporting.
• Building business credit: A good business credit history can increase your chances of securing loans and better terms from suppliers in the future.
• Rewards and perks: Many cards offer attractive reward programs and perks such as travel insurance, cashback, and purchase protection.

Understanding Bad Credit and Its Impact on Business Credit Cards

When applying for a business credit card, the issuer typically checks your personal credit history and your business credit profile. A low personal credit score might limit your options for business credit cards. However, some cards are designed for those with bad credit or those looking to establish credit.

Secured Business Credit Cards

Secured cards require a cash deposit as collateral, which often determines your credit limit. These cards are more accessible for those with bad credit and help build credit over time through responsible use. Be sure to choose a card that reports to major credit bureaus.

Unsecured Business Credit Cards for Bad Credit

Unsecured cards do not require a deposit but have higher interest rates and lower credit limits compared to secured cards. They tend to be more challenging to qualify for, but some issuers offer cards specifically for people with bad credit.

Top Business Credit Cards for New Businesses with Bad Credit

Here are some of the best options available:

• Capital One Spark Classic for Business: Designed for business owners with average credit, this card offers unlimited 1% cashback and no annual fee. It also provides free employee cards and tools for expense tracking and budgeting.
• Wells Fargo Business Secured Credit Card: With a security deposit ranging from $500 to $25,000, this card allows you to set your credit limit. It offers a choice between cashback or rewards points and includes comprehensive business expense management tools.
• Blue Business® Plus Credit Card from American Express: Although not specifically designed for bad credit, this card may accept applicants with lower credit scores. It offers a competitive reward rate and an introductory 0% APR period.

Business Credit Cards For New Business With Bad Credit Example:

Imagine you're starting a small online retail business and have a personal credit score of 580 due to past credit mistakes. You need a business credit card to keep track of expenses and build your business credit.

After researching, you decide on the Capital One Spark Classic for Business, as it offers 1% cashback and does not require a security deposit. You use the card responsibly, paying off the balance in full each month. Over time, your personal and business credit scores improve, granting access to better credit rates and terms.

Securing a business credit card for a new business with bad credit might seem intimidating, but with the right knowledge and options, it’s entirely possible. By taking advantage of available offers and using the card responsibly, you'll be on your way to building a healthy credit profile for your new venture. If you found this guide helpful, share it with fellow entrepreneurs and explore other helpful guides on Flik Eco for more personal finance and investing tips!