Owning a small business comes with a myriad of financial responsibilities and challenges. One of the essential tools for managing these is a small business credit card. But what if your credit score is less than perfect? Fear not! You don't need a stellar credit score to secure a business credit card that suits your financial needs. In this article, we explore the best small business credit cards for fair credit, the benefits they offer, and tips on improving your credit score to access even better financing options in the future. So buckle up and let Flik Eco guide you through the world of small business credit cards for fair credit!
Small Business Credit Cards For Fair Credit Table of Contents
Understanding Fair Credit and Its Implications
Having a fair credit score, usually ranging between 580 and 669, means you've had a few bumps on your credit journey - perhaps a late payment, high credit utilization rate, or limited credit history. As a result, your options for credit cards may be limited because lenders view you as a moderate risk.
However, that doesn't mean you won't find a suitable card for your small business. Several credit cards cater to those with fair credit, offering a chance to build your credit score and enjoy some benefits simultaneously.
Best Small Business Credit Cards for Fair Credit
1. Capital One Spark Classic for Business
- No annual fee
- 1% cashback on all purchases, without limits
- Free employee cards
- Tools to monitor and manage your account with ease
This card is a great option for small business owners wanting to build their credit while earning rewards. The cashback program allows you to earn rewards at a consistent rate, and the free employee cards help manage and track business expenses efficiently.
2. Wells Fargo Business Secured Credit Card
- Annual fee of $25 per card
- Earn 1.5% cashback on every $1 spent, or 1 point per $1 spent with a 1,000-point bonus for $1,000+ spent in a monthly billing period
- A credit limit ranging from $500 to $25,000
- Access to free FICO credit score reports
This secured card allows you to build credit while earning rewards through cashback or their point-based program. With a flexible credit limit based on your security deposit, you have control over your spending power while improving your credit score.
3. BBVA Secured Visa® Business Credit Card
- Annual fee of $0 for the first year; $40 thereafter
- Earn up to 3x points in select business categories
- Free employee cards with customizable spending limits
- 90-day interest-free period for purchases of $1,000 or more
With rewards in popular business categories and customizable employee card controls, the BBVA Secured Visa® Business Credit Card allows businesses to maximize rewards and monitor spending while actively building credit.
Small Business Credit Cards For Fair Credit Example:
Jane is a small business owner with a fair credit score due to high credit utilization and a short credit history. She decided to choose the Capital One Spark Classic for Business to help her build her credit while earning rewards. The no annual fee and 1% cashback feature appealed to her, and the free employee cards helped her manage the growing expenses of her business. Over time, Jane's credit score improved, and she eventually upgraded to a card with more perks and better interest rates.
Navigating the world of small business credit cards for fair credit can be a challenge, but keep in mind that your options aren't as limited as you thought initially. By choosing an appropriate credit card and using it responsibly, you can strengthen your credit score, enjoy financial rewards, and secure better financing opportunities in the future. Once you feel more confident and better equipped, consider exploring other financial topics and guides on Flik Eco to stay informed and take control of your financial destiny. Don't forget to share this article with fellow entrepreneurs and small business owners in need of guidance – remember, we're all in this together!
