Having bad credit can make it difficult for business owners to qualify for traditional business credit cards. However, it does not mean that getting business financing is impossible. Several financial institutions offer secured business credit cards and alternative credit options that can help entrepreneurs manage expenses and improve their credit history.
Business credit cards can help pay for office supplies, equipment, advertising, inventory, and other operating expenses. They can also help business owners separate personal and business transactions.
If you have a low credit score or a limited credit history, choosing the right card is important. Here are some options worth considering.
1. Wells Fargo Business Secured Credit Card
The Wells Fargo Business Secured Credit Card is an option for business owners who have difficulty qualifying for traditional credit cards. It requires a security deposit that generally determines the available credit limit.
This card can help business owners manage everyday expenses while establishing responsible payment habits. It may be suitable for small businesses and entrepreneurs who want to build a stronger credit profile.
2. Bank of America Business Advantage Unlimited Cash Rewards Secured Card
Bank of America offers secured credit options that may be worth exploring for business owners with limited or poor credit history. Secured cards require a refundable deposit and can provide access to a credit line.
Business owners should contact the bank to confirm current business-card availability and eligibility requirements before applying.
3. Capital One Secured Business Credit Options
Capital One offers credit products designed for people who want to establish or rebuild credit. However, its secured card availability and eligibility for business use can vary.
Business owners should check the current application requirements and avoid assuming that a personal secured card will build business credit.
4. Ramp Corporate Card
Ramp is an alternative for eligible businesses that want corporate spending tools without relying exclusively on the owner’s personal credit score.
It evaluates business financial information, such as cash balances and financial activity. This can make it an option for companies with healthy finances but weaker personal credit.
However, businesses generally need to meet specific financial and eligibility requirements.
5. Brex Corporate Card
Brex offers corporate card solutions for eligible startups and established companies. Its evaluation process considers business financial strength and other company information.
It provides expense management tools, employee cards, and spending controls.
Brex may be worth considering for businesses with sufficient funding or financial resources, even when the founder has a limited personal credit history.