The cards on this list is secured business credit cards However, different options could be a good idea based on your personal or business credit is weak or thin. Click the name of the card for our full review. Before applying, confirm the information on the website of the issuer.
Business credit cards that are secured are used to help build credit for business
First National Bank Business Edition Secured Mastercard Credit Card
Our choice for prequalifying without a credit check
If you’re able to put some funds down and you can afford it, this First National Bank Business Edition(r) Secured Mastercard(r) Credit Card could be a great option for borrowers with bad credit. Secured business credit card requires a credit report (personal credit) and a security account (between the $2200-$110,000 mark in increments of $50) that determines the credit limit. Your deposit earns you interest and your card activity can be tracked by Dun & Bradstreet, one of the three major credit bureaus for businesses, which means paying on time will improve your credit score for business. The card has an annual fee of $39. Check out the review.
The Bank of America(r) Business Advantage Unlimited Cash Rewards Mastercard(r) Secured credit card
Our top picks for cash back rewards
The Bank of America(r) Business Advantage Unlimited Cash Rewards Mastercard(r) Secured credit card gives 1.5 percent cash return on all purchases, without a limitation or expiration date on your rewards. The card comes with the minimum security amount of $1,000, which is equivalent to your credit limit , and subject to approval of your credit. Bank of America will periodically examine your secured card and could change it to an unsecure card, if and when you are eligible. The card is not subject to an annual cost.
Business credit cards are for people with thin or weak credit
Capital One(r) Spark(r) Classic for Business
Our choice for applicants who have fair or average credit
While it’s true that the capital One(r) Spark(r) Classic for Business isn’t secured and is a card with a high APR, it is accessible to business owners who have good and “average” credit which means they don’t have many options in credit cards for businesses. It’s a good thing, especially that it has a no-annual fee of just $0. Check out our review.
Ramp Card
Our choice for a Business card that does not require a credit check
The Ramp Card’s most important selling point is that it doesn’t need a credit check or personal guarantees. It’s all you need is a strong income and a strong balance in your bank. The corporate credit card gives unlimited cash-back rewards and card-level spending control without a monthly fee. Read our full review.
Secured credit cards can help personal credit
Capital One Quicksilver Secured Cash Rewards Credit Card
Our pick for: Simplicity
The Capital One Quicksilver Secured Cash Rewards Credit Card is a fantastic combination of features for people who have poor credit. The card requires a deposit and in exchange, you receive a card with a fee of $0 per year which reports to the three credit bureaus, an automatic review of credit limits every six months, and the possibility of upgrading to an unsecure Capital One card. Also, you get you get 5% back on hotels and rental vehicles purchased with Capital One Travel, plus 1.5 percent for all other purchases. This is comparable to the rates you’d get on credit cards that aren’t secured. Check out our review.
Explore it(r) Secured Credit Card
Our top pick for business owners who would like to move to a secured credit card.
This credit card with a personal security has a great cash-back program and responsible behavior will automatically prompt an evaluation of the card by Discover within seven years of having the card. Be aware that the initial deposit or security deposit is to be made through an account with a bank. Check out your review.
How do you use an unsecured business credit card efficiently
Here are a few methods to maximize the benefits of secured business credit cards:
- You can use the card every occasionally by making two or three small purchases per month.
- Make sure you pay your total balance each month prior to when the date is due. This way, you won’t get charged for interest. The rates of interest on secured cards tend to be higher than those for unsecured cards.
- Monitor your score on credit. If it is improving check if the credit card issuer is able to upgrade you to an unsecured credit card.
How quickly can a business credit card earn credit?
It typically takes one year of using a secured credit line to make a change in the credit score to be eligible for an unsecured credit card. Sometimes, it is possible to transfer your secured line to an unsecure line that is better to your score as it does not require the opening of an account from scratch. But, if you decide to open another account to obtain an unsecure line, you’ll still enjoy many benefits to it: low interest rates and fees as well as evidence of your excellent credit.
Solutions to secure business credit cards
If you have an credit score that is 630 or higher then you might want to avoid applying for secured business credit cards and instead choose a card that offers greater options or with less expensive interest rates and charges. If you’re not poor credit or don’t have an outstanding scores, there’s different kinds of business cards there to suit your needs, too.
Business debit cards
They aren’t credit cards because spending is linked to balance of cash in a linked checking account. However, the debit cards used by businesses generally do not require a credit check and are a great option for business owners who wish to make use of plastic in order to manage their expenses or the spending of their employees.
Credit cards for non-business use
It isn’t necessary to have an enterprise credit card to manage financial management for your business. If you’re sole proprietor and have poor or weak credit, you may be able to obtain a credit card that is secured for your personal use. These cards can help improve your credit score and are a must to finance your future needs however they’re not equipped with features such as employee cards and typically have smaller limits than business credit cards. Be sure to keep your personal and business spending to a minimum.
If you’re not sure if you’ll pass a credit screening, some business credit card issuers allow you to pre-qualify. This method will let you know if you’ll be approved , without impacting your credit score. It is also a good idea to check your credit score prior to applying. This way, you will be able to discover which cards you are qualified for and decrease the chance of failing a credit test.
Business loans for businesses with bad credit
If you’re looking to improve your business credit , but don’t have the ideal credit score secure business credit card isn’t your sole alternative. Business loans with bad credit can be obtained from online lenders. Successfully paying back this loan could improve your credit score. These loans could have very high rates of interest, however be sure that you’re able to pay the repayments prior to borrowing.
