Best Business Credit Cards for Bad Credit

The goal of better business credit is often achieved through trial and error. Financial missteps happen and can result from a variety of circumstances, but the end result is the same — bad business credit. When your score dips into the bad range (less than 580 on the FICO scale), it can prevent you from obtaining financing for your business. If you’re looking for a credit card to bounce you back into the world of fiscal stability, take a look at the following options that are designed to do just that.

Best for no annual fee: Capital One Spark Classic for Business Credit Card

Essentials:

  • Annual fee: None
  • Rewards rates: 1% unlimited cash back on all purchases
  • APR: Variable APR of 24.49 % on all purchases
  • Intro bonus: None
  • Credit needed: Fair to good

Even better:

If you’re looking to rebuild credit, your first target should be an unsecured credit card with some rewards. The Capital One Spark Classic for Business Credit Card can help fulfill that objective, but you’ll need average credit for approval. What you’ll get in return is a card that charges no foreign transaction fees, so international purchases won’t cost extra. 

You can dish out free employee cards to maximize your rewards on company expenses, and those accumulated rewards won’t expire as long as the account is active and in good standing. Toss in purchase protections that repair or replace items purchased with the card within 90 days, and you’ve got a well-rounded option that will move you toward a better credit profile with prudent management. 

Best for approval odds: Wells Fargo Business Secured Credit Card

Essentials:

  • Annual fee: $25 per card
  • Rewards rates: 1.5% cash back and 1,000 bonus points when you spend more than $1,000 monthly 
  • APR: Prime rate plus 11.90% on all purchases
  • Intro bonus: None 
  • Credit needed: Poor

Even better:

If an unsecured card isn’t within reach, don’t abandon ship. The Wells Fargo Business Secured Credit Card will bring you back to calmer waters if you have the means to deposit funds equal to your desired credit line. You’ll be allowed a limit of up to $25,000.

The bank will review your status from time to time for a chance to update to an unsecured account. You’ll also be protected from unauthorized purchases with the issuer’s zero liability program.

Best for high credit limit: The Kabbage Card

Essentials:

  • Annual fee: None
  • Rewards rates: None
  • APR: 24.00.-99.00%
  • Intro bonus: None
  • Credit needed: Poor

Even better:

It’s not a traditional credit card option, but the Kabbage Card delivers fast funding to your business if you have a promising deal securely in hand. The rates that Kabbage charges for a loan can be prohibitive, but your advantage lies in the issuer’s ability to analyze your business’s cash flow, bank accounts and overall financial picture rather than just a FICO score.

This card option isn’t part of the Visa or Mastercard network, but you may be able to do without the ancillary perks and benefits of those issuers if you need to borrow up to $250,000 for your business. The loan application only takes a few minutes to complete, and you’ll receive the funding within a few days.

Best for building credit: First National Bank Business Edition Secured Visa Card

Essentials:

  • Annual fee: $39
  • Rewards rates: Rebates from participating merchants through Visa SavingsEdge
  • APR: 20.24% on all purchases and balance transfers
  • Intro bonus: None 
  • Credit needed: Poor 

Even better:

Until your credit incrases, you can secure a card limit of up to $100,000 with this option from First National Bank. Your deposit must equal 110% of the line you choose, so a $50,000 limit will require a $55,000 deposit into one of the bank’s liquid accounts, on which you can earn interest.

Cardholders can take advantage of cellphone protection when they use the card to pay their monthly bill for their telecom service. The cellphone protection covers up to $1,000 per year, with a $600 limit per occurrence for damaged or stolen devices (subject to a $50 deductible).

Best for bonus rewards: BBVA Compass Business Secured Credit Card

Essentials:

  • Annual fee: None in the first year, $40 thereafter
  • Rewards rates: One point per dollar on all purchases, three points at office supply stores and two points at gas stations and restaurants
  • APR: 17.74% 
  • Intro bonus: None  
  • Credit needed: Poor or no history

Even better:

You can manage your account from anywhere at any time with the bank’s online portal. The website allows bill payment and the tracking of employee expenses if you choose to issue additional cards with individual spending limits.

Business travel accident insurance is covered up to a limit of $500,000 when you use the card for fares charged by common carriers. If you want to rent a car, you won’t have to purchase physical damage coverage at the agency since protection automatically applies when rentals are paid with the card. 

Best for no credit history: Bento for Business Visa Debit Card

Essentials:

  • Annual fee: None for the first two cards and then ranging from $29 per month for 10 cards to $149 for unlimited issuance
  • Rewards rates: None
  • APR: None
  • Intro bonus: None
  • Credit needed: None

Even better:

If it’s not credit you seek but cash management, the Bento for Business Visa Debit Card offers a 60-day free trial that allows you to see how its platform can help manage your business. Since it’s a debit card program, there’s no need to worry about incurring interest on purchases.

You can send payments to vendors or suppliers electronically by just using a corresponding email address. And if your ultimate goal is trying to rebuild credit, applying for the Bento card won’t hurt your score since no credit check is required with the application.

Thom Tracy

Thom Tracy is a writer and consultant with 28 years of experience in the insurance and financial services industries.