6 Best Business Credit Cards for Bad Credit in 2023
Tricia has nearly two decades of experience in commercial and federal government lending. Her expertise is highlighted throughout small business loan content on Fit Small Business.
Benilyn has over a decade of experience as a banking officer. Her expertise is featured throughout Fit Small Business in personal finance, credit card, and real estate investing content.
This article is part of a larger series on Best Small Business Credit Cards.
Editor’s note: This is a recurring post with regularly updated card details.
It’s still possible to qualify for a business credit card even with bad credit. When you’re on the path to rebuilding credit, business secured cards, personal secured cards, and debit cards are your best options. Many business credit cards for bad credit offer rewards comparable to regular business cards, and when used responsibly, they can help improve your credit score.
Here are the six best business credit cards for business owners with bad credit:
- Bank of America Business Advantage Unlimited Cash Rewards Secured: Overall best business credit card for bad credit
- Union Bank Business Secured Visa Credit Card: Best for low annual percentage rate (APR)
- First National Bank of Omaha Business Edition Secured Visa Card: Best for high credit limit option
- Discover it Secured Card: Best personal credit card for gas station rewards
- OpenSky Secured Visa Credit Card: Best personal credit card with no credit check
- Bento for Business Visa Debit Card: Best easy approval debit card
To see how these cards stack up against others we reviewed on our site, click Add to Compare on a card below and select up to two additional cards for comparison.
Business Advantage Unlimited Cash Rewards Secured Credit Card
BEST FOR:
Those who cannot qualify for unsecured business credit cards
Intro APR
None
Regular APR
26.49%
Annual Fee
None
Credit Needed
Poor
- Earn unlimited 1.5% cash back on all purchases
Pros
- No annual fee
- Unlimited rewards
- Builds business credit
Cons
- Security deposit is required
- No sign-up bonus
- No 0% Intro APR
- Cash flow management tools
- Travel and emergency services
- Online and mobile access
- Balance Connect™ for overdraft protection
- Zero liability protection
Intro APR
None
Regular APR
26.49%
Annual Fee
None
Credit Needed
Poor
- Earn unlimited 1.5% cash back on all purchases
Pros
- No annual fee
- Unlimited rewards
- Builds business credit
Cons
- Security deposit is required
- No sign-up bonus
- No 0% Intro APR
- Cash flow management tools
- Travel and emergency services
- Online and mobile access
- Balance Connect™ for overdraft protection
- Zero liability protection
Union Bank® Business Secured Visa® Credit Card
BEST FOR:
Low annual percentage rate (APR)
Intro APR
16.99%
Regular APR
16.24% variable for purchases and balance transfers
Annual Fee
$30
Credit Needed
Bad to Excellent
- Grow your company with a secured credit limit of up to $25,000.
- With a low $30 annual fee, keep your company’s money at work where it matters most.
Pros
- Low annual fee
- Owners with bad credit can apply
- Fixed ongoing APR
Cons
- With security deposit
- No interest-free financing option
- No rewards for new and existing cardholders
- High balance transfer and cash advance fees
- Mobile access: Enjoy 24/7 access to mobile site to allow you to access your account wherever and whenever safely and securely
- Swipe smarter: This card features advanced technology for enhanced safety and protection against fraud
- Customized account alerts: Tailor your banking experience to include customized account alerts keeping you updated and informed
- Auto rental collision damage: You’re covered for damage due to collision or theft
- Zero fraud liability: You won’t be held responsible for unauthorized charges made with your account or account information
Intro APR
16.99%
Regular APR
16.24% variable for purchases and balance transfers
Annual Fee
$30
Credit Needed
Bad to Excellent
- Grow your company with a secured credit limit of up to $25,000.
- With a low $30 annual fee, keep your company’s money at work where it matters most.
Pros
- Low annual fee
- Owners with bad credit can apply
- Fixed ongoing APR
Cons
- With security deposit
- No interest-free financing option
- No rewards for new and existing cardholders
- High balance transfer and cash advance fees
- Mobile access: Enjoy 24/7 access to mobile site to allow you to access your account wherever and whenever safely and securely
- Swipe smarter: This card features advanced technology for enhanced safety and protection against fraud
- Customized account alerts: Tailor your banking experience to include customized account alerts keeping you updated and informed
- Auto rental collision damage: You’re covered for damage due to collision or theft
- Zero fraud liability: You won’t be held responsible for unauthorized charges made with your account or account information
First National Bank of Omaha Business Edition Secured Mastercard® Credit Card
BEST FOR:
Secured credit lines of as much as $100,000
Intro APR
None
Regular APR
23.99% Variable
Annual Fee
$39
Credit Needed
N/A
- Request your own credit limit between $2,000 and $100,000―multiples of $50―when you apply, subject to credit approval.
- Security deposit is 110% of the amount of your credit limit, between $2,200 and $110,000―multiples of $50―subject to credit approval.
- $39 annual fee
- Earn interest on your security deposit.
- Variable 19.99% APR on purchases and balance transfers based on the prime rate.
- Get automatic rebates with Visa SavingsEdge® on purchases that you make at qualified merchants.
- United States citizenship isn’t required but you must have a valid Social Security number or individual taxpayer identification number (TIN) and a valid US address.
- Online access to view transactions, pay your bill, view up to seven years of prior statements, and more.
Pros
- Accepts a wide range of credit scores
- You can set your own credit limit
- Offers user-friendly management reports
- You’ll earn 0.05% annual percentage yield (APY) on your security deposit account balance
Cons
- Requires an annual fee
- Charges a foreign transaction fee
- Doesn’t offer rewards
- Automatic discounts: Good on purchases you make at qualified merchants. Rebates will be applied as statement credits.
- Visa Zero Liability: It covers you when fraudulent charges are made with either your card or your account information.
- Free management reports: Be able to track your expenses and spending, identify tax deductions, prepare tax filings, and predict costs with ease
Intro APR
None
Regular APR
23.99% Variable
Annual Fee
$39
Credit Needed
N/A
- Request your own credit limit between $2,000 and $100,000―multiples of $50―when you apply, subject to credit approval.
- Security deposit is 110% of the amount of your credit limit, between $2,200 and $110,000―multiples of $50―subject to credit approval.
- $39 annual fee
- Earn interest on your security deposit.
- Variable 19.99% APR on purchases and balance transfers based on the prime rate.
- Get automatic rebates with Visa SavingsEdge® on purchases that you make at qualified merchants.
- United States citizenship isn’t required but you must have a valid Social Security number or individual taxpayer identification number (TIN) and a valid US address.
- Online access to view transactions, pay your bill, view up to seven years of prior statements, and more.
Pros
- Accepts a wide range of credit scores
- You can set your own credit limit
- Offers user-friendly management reports
- You’ll earn 0.05% annual percentage yield (APY) on your security deposit account balance
Cons
- Requires an annual fee
- Charges a foreign transaction fee
- Doesn’t offer rewards
- Automatic discounts: Good on purchases you make at qualified merchants. Rebates will be applied as statement credits.
- Visa Zero Liability: It covers you when fraudulent charges are made with either your card or your account information.
- Free management reports: Be able to track your expenses and spending, identify tax deductions, prepare tax filings, and predict costs with ease
Discover it® Secured
BEST FOR:
Business owners who need help rebuilding personal credit
Intro APR
N/A
Regular APR
25.24% variable
Annual Fee
$0
Credit Needed
N/A
- No annual fee, earn cash back, and build your credit with responsible use.
- It's a real credit card. You can build a credit history with the three major credit bureaus: Equifax, Experian, and TransUnion.
- Establish your credit line by providing a refundable security deposit from $200 to $2,500 after being approved. Bank information must be provided when submitting your deposit.
- Automatic reviews starting at eight months to see if we can transition you to an unsecured line of credit and return your deposit.
- 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. In addition, earn an unlimited 1% cash back on all your other purchases―automatically
- Get 100% US-based customer service & get your free Credit Scorecard with your FICO® Credit Score
- We match all the cash back you've earned at the end of your first year automatically.
- Receive Free Social Security number alerts—Discover will monitor thousands of risky websites when you sign up.
Pros
- Ongoing cash back
- No annual fee
- Automatic monthly account review
Cons
- Security deposit is required
- No 0% APR period
- High ongoing APR
- Updated FICO Credit Scores: You can get FICO® credit score, key factors, and other credit information on Discover.com and your statement.
- Data privacy: Remove personal information from selected people-search sites that may sell your data.
- Freeze it®: Freeze your account within seconds in the event you have misplaced your physical card
Intro APR
N/A
Regular APR
25.24% variable
Annual Fee
$0
Credit Needed
N/A
- No annual fee, earn cash back, and build your credit with responsible use.
- It's a real credit card. You can build a credit history with the three major credit bureaus: Equifax, Experian, and TransUnion.
- Establish your credit line by providing a refundable security deposit from $200 to $2,500 after being approved. Bank information must be provided when submitting your deposit.
- Automatic reviews starting at eight months to see if we can transition you to an unsecured line of credit and return your deposit.
- 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. In addition, earn an unlimited 1% cash back on all your other purchases―automatically
- Get 100% US-based customer service & get your free Credit Scorecard with your FICO® Credit Score
- We match all the cash back you've earned at the end of your first year automatically.
- Receive Free Social Security number alerts—Discover will monitor thousands of risky websites when you sign up.
Pros
- Ongoing cash back
- No annual fee
- Automatic monthly account review
Cons
- Security deposit is required
- No 0% APR period
- High ongoing APR
- Updated FICO Credit Scores: You can get FICO® credit score, key factors, and other credit information on Discover.com and your statement.
- Data privacy: Remove personal information from selected people-search sites that may sell your data.
- Freeze it®: Freeze your account within seconds in the event you have misplaced your physical card
OpenSky® Secured Visa® Credit Card
BEST FOR:
Business owners with a credit score below 580
Intro APR
N/A
Regular APR
18.89% Variable
Annual Fee
$35
Credit Needed
No Credit Check
- No credit check needed to apply—OpenSky® won’t pull your credit so there’s no impact on your credit score.
- You can set your own credit limit by making a refundable deposit ranging from $200 to $3,000.
- OpenSky® reports your activities to credit bureaus including Equifax®, Experian® and TransUnion® to help you build or improve your credit score.
Pros
- No credit check required
- Helps build credit
- Low annual fee
Cons
- No introductory APR
- No rewards
- Requires security deposit
- Email alerts: Set up email alerts as a reminder to make a payment, or when you almost use up your credit limit.
- Automatic payments: You can set up recurring automatic payments to ensure your card is paid on time.
- All benefits of a Visa®: This card comes with all the benefits of a Visa® credit card, including worldwide acceptance and fraud protection.
Intro APR
N/A
Regular APR
18.89% Variable
Annual Fee
$35
Credit Needed
No Credit Check
- No credit check needed to apply—OpenSky® won’t pull your credit so there’s no impact on your credit score.
- You can set your own credit limit by making a refundable deposit ranging from $200 to $3,000.
- OpenSky® reports your activities to credit bureaus including Equifax®, Experian® and TransUnion® to help you build or improve your credit score.
Pros
- No credit check required
- Helps build credit
- Low annual fee
Cons
- No introductory APR
- No rewards
- Requires security deposit
- Email alerts: Set up email alerts as a reminder to make a payment, or when you almost use up your credit limit.
- Automatic payments: You can set up recurring automatic payments to ensure your card is paid on time.
- All benefits of a Visa®: This card comes with all the benefits of a Visa® credit card, including worldwide acceptance and fraud protection.
Bento for Business Visa® Debit Card
BEST FOR:
Managing employee expenses without a credit check to qualify
Number Of Cards
Unlimited
Monthly Cost
$29-149 monthly
Daily Load Limit
None
Daily Spend Limit
$25,000
- Instant decision
- No credit check required
- One-click card controls and expense reports
Pros
- Get the first two cards for free
- Manage employee expenses easily
- Additional card features and purchase protections
Cons
- Large fees for more than two cards
- Deposited funds are required
- Won’t help build business or personal credit
- Auto rental collision damage waiver: Use this card to pay for your entire auto rental transaction and get collision coverage for a damaged or stolen rental vehicle, up to the value of the vehicle.
- Purchase protection: Purchases are covered up to 90 days for damage and theft, up to $10,000 per claim, $50,000 per year.
Number Of Cards
Unlimited
Monthly Cost
$29-149 monthly
Daily Load Limit
None
Daily Spend Limit
$25,000
- Instant decision
- No credit check required
- One-click card controls and expense reports
Pros
- Get the first two cards for free
- Manage employee expenses easily
- Additional card features and purchase protections
Cons
- Large fees for more than two cards
- Deposited funds are required
- Won’t help build business or personal credit
- Auto rental collision damage waiver: Use this card to pay for your entire auto rental transaction and get collision coverage for a damaged or stolen rental vehicle, up to the value of the vehicle.
- Purchase protection: Purchases are covered up to 90 days for damage and theft, up to $10,000 per claim, $50,000 per year.
Bank of America® Business Advantage Unlimited Cash Rewards Secured: Overall Best Business Credit Card for Bad Credit
Why we like it: The Bank of America® Business Advantage Unlimited Cash Rewards Secured credit card is our choice for the best overall business credit card for bad credit because it offers unlimited 1.5% cash back on all purchases and has no annual fees. You can redeem your cash rewards as a deposit into your Bank of America checking or savings account, a statement credit, or a check mailed to you. You can still qualify for this card even if you have poor credit as long as you can make a security deposit of at least $1,000.
Here are other important things that you need to know about the card:
- Has a varied credit limit: The amount of your credit limit will depend on your security deposit.
- Builds business credit: You can build your business credit over time when you make consistent on-time payments, allowing you to qualify for unsecured business credit cards.
- Lacks sign-up bonus or introductory APR: While it offers unlimited cash back rewards, there’s no sign-up bonus and interest-free financing period.
This credit card is also our top-recommended secured business credit card and one of our best cards for new businesses with no credit history.
Union Bank® Business Secured Visa® Credit Card: Best for Low APR
Why we like it: Among all the bad credit business credit cards on this list, the Union Bank® Business Secured Visa® Credit Card offers the lowest APR at 16.24%. It also allows you to choose your credit limit of anywhere from $500 up to $25,000, based on the amount of your security deposit. With the Visa SavingsEdge® program, you can enjoy automatic discounts on eligible purchases at participating merchants.
Some important things that you need to know about it include:
- Charges an annual fee: You’ll be charged an annual fee of $30.
- Lacks rewards: It doesn’t offer introductory and ongoing rewards on purchases.
- Improves credit score: Union Bank® may report information about your account to credit bureaus, including late payments, missed payments, or other defaults. Use your account responsibly to improve your credit rating.
This card is also one of our leading business credit cards for fair credit because of its low ongoing APR.
First National Bank of Omaha Business Edition® Secured® Visa Card: Best for High Credit Limit Option
Why we like it: The First National Bank of Omaha Business Edition® Secured® Visa Card is a great option if you need a credit limit from $2,000 to $100,000—the highest credit limit in this guide. Since it’s a Visa card, you can use it anywhere Visa is accepted. Moreover, you’ll enjoy automatic discounts on qualifying purchases through the Visa SavingsEdge® program. It’s important to note that it comes with an annual fee of $39.
The other things that you should know about this card are:
- Has no rewards: It doesn’t offer a sign-up bonus or ongoing rewards on your purchases.
- Determines your credit limit based on security deposit: Your security deposit should be 110% of your desired credit limit. For instance, if you need a credit limit of $100,000, then you need to make a security deposit of $110,000.
- Lets you earn interest on your security deposit: You’ll earn interest on your security deposit based on the deposit account agreement.
This credit card is also one of our best instant approval business credit cards because of its fast pre-qualification process.
Discover it® Secured Card: Best Personal Credit Card for Gas Station Rewards
Why we like it: If you’re often on the road, the Discover it® Secured Card might be the best card for you because of its 2% cash back rewards on gas and restaurant purchases up to $1,000 each quarter. Then, you’ll earn 1% cash back on all other qualifying purchases. It has a low minimum security deposit requirement of only $200, similar to the OpenSky® Secured Visa® Credit Card.
Here are other things that you should know about it:
- Offers double cash back: Discover will double the cash back you’ve earned at the end of your first year without limits automatically.
- Has no annual fee: You can earn unlimited cash rewards on your expenses without having to pay annual fees.
- Helps build credit: Discover reports your usage and payment behavior to the major credit bureaus and begins automatic card reviews after seven months of card ownership to see if you qualify for an unsecured card.
It’s also one of our top-recommended secured business credit cards because of its lucrative rewards and features like fraud alerts and online and mobile banking. Keep in mind that it’s a personal credit card, not a business card, so ensure you separate your business and personal expenses to prevent problems during tax season.
OpenSky® Secured Visa® Credit Card: Best Personal Credit Card With No Credit Check
Why we like it: Similar to the Discover it® Secured Card, OpenSky® Secured Visa® Credit Card is a personal credit card you can use for any business purchase to help rebuild your personal credit. OpenSky® won’t do a credit check for approval, so it doesn’t matter whether you have bad or poor credit. In addition, it reports your payment history to the major credit bureaus, helping you raise your credit score when you use your card responsibly. It requires a security deposit ranging from $200 to $3,000, the amount of which will determine your credit limit.
Remember these important details about it:
- Has an annual fee: It charges an annual fee of $35.
- Lacks rewards: Unlike the Discover it® Secured Card, which offers unlimited cash back, this card doesn’t offer a sign-up bonus or ongoing rewards, which is rare even for secured credit cards.
- Doesn’t require a bank account: While most secured credit cards require a bank account to get started, OpenSky® makes it easy if you don’t have or don’t qualify for a bank account. You can instead use a money order for the security deposit to get the application going.
This card is also on our list of the top credit cards for new businesses with no credit history because the issuer doesn’t do a credit check as part of the approval process.
Bento for Business Visa® Debit Card: Best Easy Approval Debit Card
Why we like it: The Bento for Business Visa® Debit Card is a debit card and doesn’t require a credit check for approval. It also has no setup, domestic transaction, and decline or overdraft fees. You can get unlimited cards for your employees, control the spending limit and spend category on each card, make changes to these controls on the mobile app, and freeze a card if it gets lost or stolen.
Here are other things you should know about it:
- Quick approval: Since this card doesn’t need to do a credit check, approval can happen in as quick as five minutes.
- Monthly cost: Bento offers four pricing plans with costs ranging from $29 to $149 or more per month. You can start a free trial for the first 60 days without commitment.
- Refund check fee: If you cancel your card and a balance remains on your account upon cancelation, you’ll be charged a refund check fee of $15 per check.
This card made it to our roundup of the best business cards with no personal guarantee because of its convenient application process.
How We Selected the Best Business Credit Cards for Bad Credit
The best business credit cards for bad credit are easy to use, allowing you to focus on rebuilding your credit. To choose the best cards, we considered the easy approval process, interest rates, and how the card helps improve your credit score. Ongoing rewards are also a plus factor that we also took into account.
How To Improve Your Credit With a Business Credit Card
Using a business credit card responsibly is a good way to repair your credit:
- Pay all of your bills on time: Making bill payments on time is one of the fastest ways to improve your credit score. This should not only include your credit card bills but also your other payables, such as utility, phone, and internet bills and bills from vendors.
- Monitor your credit report: You can get free credit reports and free credit monitoring from credit card issuers. Look over your credit report regularly for any mistakes or discrepancies.
- Keep your credit applications to a minimum: Be aware of any products you may apply for that require a credit check, such as auto loans or insurance. Too many hard credit inquiries can lower your credit score.
- Keep your credit utilization low: You can use your card for a small part of your monthly expenses, such as gas or groceries, to keep your credit utilization low. But you don’t need to stop using credit cards completely. A credit card that hasn’t been used for a long time has the potential to be suddenly closed by the credit card company, and you’ll need to reapply for the card.
Credit utilization ratio:
This is the amount of credit you’ve used compared to your total available credit limit, which can be calculated per card or for all the cards your business owns. In general, a ratio that ranges from 0% to 30% is recommended.
Bottom Line
When you’re deciding which card to get, remember that not all of them function the same way. If you’re using a secured card or a debit card, you’ll want to have funds available at all times since the payment pulls from the account that the card is linked to. If you opt for a charge card, then make sure to pay your full balance every month. Using your business card responsibly can help you build credit and eventually qualify for a regular business credit card.
When you’re ready to apply for a wider variety of business credit cards, the top choices are in our list of the best small business credit cards.
