Having bad credit is a tough situation, especially if you think you can't get a credit card. Can you get a business credit card with bad credit? Find out here.

Can You Get a Business Credit Card With Bad Credit?

Are you looking for a way to finance important purchases, streamline employee expenses, and make use of helpful account management tools? 

If so, you should consider getting a business credit card. Unfortunately, many business owners with low credit scores make the mistake of thinking that it’s not possible to do this. 

To help you understand how to get a business credit card with bad credit, we’ve created a guide. Keep reading and we’ll tell you everything that’s important to know. 

What Is a Low Credit Score?

Credit scores work on a numeric system. If you have a low credit rating, it’s going to be harder for you to qualify for loans and to receive credit cards. Credit scores can range from three hundred to eight hundred and fifty.

If you have a score that’s above eight hundred, you have an excellent credit score. those with credit scores that are below six hundred have poor credit scores. Around sixteen percent of people have poor credit scores. 

People typically have low credit scores because they’ve gotten behind on loan payments. Business owners often receive low credit scores if they’ve recently filed for bankruptcy or a foreclosure proceeding. It’s also possible to have bad credit if somebody has stolen your financial information and accumulates bills in your name. 

How to Get a Business Credit Card With Bad Credit

If you have a low credit score and need to get a business credit card, don’t worry because you have several options. Here are some of the top strategies that are available to you:

Get a Secured Credit Card to Start Building Your Credit

If you choose to get a secured credit card, you’ll need to make a cash deposit. This usually doubles as your credit line. In most situations, this deposit amount will be two hundred dollars or more. 

Secured credit cards are specifically designed for those who are trying to rebuild their credit. It’s easy to be approved to use these cards and they often allow you to accumulate rewards on purchases that you make. They will also make it easy for you to quickly improve your credit history if you make all of your credit card payments on time. 

If you’re thinking about getting a secured credit card, keep in mind that they often charge high APRs. It’s also possible that they’ll charge you additional fees that you wouldn’t need to pay if you were using a regular credit card. 

Get a Card From a Company that Evaluates Creditworthiness by Looking at Your Business’s Cash Balance 

Some credit card companies offer credit cards to businesses if these businesses can prove their creditworthiness by showing that they have a significant cash balance and spend responsibly.

If you have low credit but are well-capitalized, this is a great opportunity that you should take advantage of. Most companies will also allow you to accumulate rewards while using these cards. 

Get a Retail Store Card to Start Building Credit

Specific stores or chains of stores issue retail store cards. It’s possible to use these cards to make purchases at the stores that issue them. Most of these stores will offer bonuses, rewards, or significant discounts for using them. 

One of the benefits of using these cards to build your credit is that it won’t be necessary for you to pay a cash deposit to receive them. It’s also easy to get approved.

If you pay off your bills on time, you can use these cards to quickly and easily build back your credit. Once you’ve done this, you’ll be more likely to be approved for a business credit card. 

Become an Authorized User to Build Your Credit 

If you know somebody else with excellent credit who’s willing to add you to one of their credit cards as an authorized user, you should consider asking them to help you out. Once you’re an authorized user, you’ll be able to make purchases. 

As long as the primary credit cardholder pays their bills on time, you’ll start improving your credit score. This is a hassle-free way to get a credit card without having to apply for one. If you become an authorized user of somebody else’s credit card, you should also consider making use of bookkeeping services so that it will be easy to keep track of your spending. 

The Best Business Credit Cards for Bad Credit

Despite what many business owners believe, it is possible to get a business credit card if you have bad credit. Here are some of the best credit cards that you should consider applying for:

The Wells Fargo Secured Credit Card 

Wells Fargo created this card to make it easy for business owners to pay for important expenses such as office materials and to make payments online. If your business has less than ten employees you can get a card for everybody who works in your business. 

The First National Bank of Omaha Business Edition Secured Visa Card 

Even though it’s not possible to get cash rewards when using this card, you’ll still be able to receive discounts on many kinds of purchases. When you apply for your card, you’ll need to make a security deposit that amounts to one hundred and ten percent of your credit limit. 

Take Action Today: Get a Business Credit Card With Bad Credit

If you’ve been trying to figure out how to get a business credit card with bad credit, remember that there are many options available to you. The easiest way to do this is by applying for a secured credit card. You should also consider building up your credit until you qualify for a business credit card. 

Are you interested in finding out more about improving your credit? If so, don’t forget to check out the Finance section of our website. 

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