Business Credit Cards for People With Poor Credit

For many small business owners with good credit history, getting approvedhow to get your first business credit card for a business credit card is quick and easy.  They can walk into their choice of banks, fill out an application and be approved for a business credit card with no problems, DESPITE being a brand new business!

But what about small business owners who have average to bad credit?   Does this mean they can never obtain a business credit card?

No!  But there are a few things you need to do BEFORE you start applying for a business credit card.

Check Your Credit Report

Before applying for a business credit card, you should first pull your credit.  If you are a new business owner, you want to check your personal credit report.

If you are an established business, and you are applying for a business credit card using only your business credit, you need to pull your business credit report.  You can look at your business credit by contacting Experian business credit or Dunn and Bradstreet (2 main sources).

Where To Get An Unsecured Business Credit Card

where to get an unsecured business credit cardIf you have average to bad credit, you should check out companies like Applied Bank® VISA® Business .  They have a business credit card that they market to start up businesses with very flexible credit guidelines.

Getting a Secured Business Credit Card

Another option for business owners with less than perfect credit is to apply for a secured business card.  Most banks will have a secured business credit card option.

Issuers of secured business credit cards are more lenient in reviewing applications in a sense that even those with bad credit or no credit history can qualify. However, to make up for the high risk, applicants are required to submit a security deposit to the issuer.

Thus, in case the secured business credit card holder defaults from payments, the issuer can tap in the security deposit to pay off the existing charges.

The value of the security deposit usually determines the credit limit that will be given to the secured credit card holder. If you need at least $1,000 of credit limit per month, then you should be prepared to submit the same amount of security deposit to your issuer.

Secured Credit Cards Look JUST LIKE An Unsecured Credit Card

Nevertheless, some entrepreneurs may hesitate to acquire a secured business credit card for fear that it can affect their company’s reputation. The good news is, nobody will have to know that you are using a secured business credit card except for your issuer.

When you present your secured business credit card to a supplier, there will be no sign or hint that your credit card is a secured one. It would look just like any other credit card for business.

An Opportunity To Start Over

Most importantly, secured business credit cards can be wonderful tools for rebuilding business credit. Use it to meet your business’s spending needs but see to it that you can pay off your debts before your due date of payment. By doing this consistently, you should be able to raise your business credit in matter of six months to a year.

 

 

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 23+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

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NHBS Inc © 2022

NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

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NHBS Inc © 2022

NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

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