6 Best Business Credit Cards for Bad Credit for 2023
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, personal-secured, debit, and prepaid cards are your best options. Many business 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:
- 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 and restaurant rewards
- First Progress Select Platinum Mastercard® Secured Credit Card: Best personal credit card with rewards for payments
- OpenSky Secured Visa Credit Card: Best personal credit card with no credit check
- Bento for Business Visa Debit Card: Best easy approval debit card
- Emburse Spend Card: Best prepaid card with unlimited rewards
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.
First National Bank of Omaha Business Edition® Secured® Visa Card: Best for High Credit Limit Option
First National Bank of Omaha Business Edition® Secured Mastercard® Card
BEST FOR:
Secured credit lines of as much as $100,000
Intro APR
None
Regular APR
25.49% Variable
Annual Fee
$39
Credit Needed
Very Poor to Good
- While FNBO does not offer any rewards for their new and existing cardholders for this card, you can still earn rewards through Mastercard Easy Savings®, where cardholders are able to save on purchases with automatic rebates from over 40,000 participating merchant locations available.
Pros
- Available for those with very poor to good scores
- Can set credit limits between $2,000 and $100,000
- Offers free management reports
Cons
- With annual fee
- Charges foreign transaction fee
- No introductory and ongoing rewards
- Requires a security deposit of 110% of the credit limit required
- TurboTax discount: Get a discount of up to $20 on TurboTax federal products when using First National Bank of Omaha Business Edition® Secured Mastercard®.
- QuickBooks Online or QuickBooks Self-Employed discount: Receive either a 30% off of a 12-month subscription on QuickBooks Online (Simple Start, Essentials, Plus, or Advanced) or a 30% off of a 12-month subscription on QuickBooks Self-Employed. This is applicable only to new QuickBooks Online customers.
- Free management reports: First National Bank of Omaha provides free management reports to help track expenses, monitor spending, note tax deductions, prepare tax filings, and predict costs easily.
- Zero liability: FNBO guarantees that you won’t be held responsible for any fraudulent charges made with both your card and account information.
Intro APR
None
Regular APR
25.49% Variable
Annual Fee
$39
Credit Needed
Very Poor to Good
- While FNBO does not offer any rewards for their new and existing cardholders for this card, you can still earn rewards through Mastercard Easy Savings®, where cardholders are able to save on purchases with automatic rebates from over 40,000 participating merchant locations available.
Pros
- Available for those with very poor to good scores
- Can set credit limits between $2,000 and $100,000
- Offers free management reports
Cons
- With annual fee
- Charges foreign transaction fee
- No introductory and ongoing rewards
- Requires a security deposit of 110% of the credit limit required
- TurboTax discount: Get a discount of up to $20 on TurboTax federal products when using First National Bank of Omaha Business Edition® Secured Mastercard®.
- QuickBooks Online or QuickBooks Self-Employed discount: Receive either a 30% off of a 12-month subscription on QuickBooks Online (Simple Start, Essentials, Plus, or Advanced) or a 30% off of a 12-month subscription on QuickBooks Self-Employed. This is applicable only to new QuickBooks Online customers.
- Free management reports: First National Bank of Omaha provides free management reports to help track expenses, monitor spending, note tax deductions, prepare tax filings, and predict costs easily.
- Zero liability: FNBO guarantees that you won’t be held responsible for any fraudulent charges made with both your card and account information.
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.
Keep in mind that the card:
- 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. And because it offers up to a $100,000 credit limit, it’s named one of our leading high-limit business credit cards.
Discover it® Secured Card: Best Personal Credit Card for Gas Station & Restaurant Rewards
Discover it® Secured
BEST FOR:
Business owners who need help rebuilding credit
Intro APR
N/A
Regular APR
27.99% 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
- With cash back rewards for new and existing cardholders
- Does not charge annual fees
- Offers automatic monthly account review
Cons
- No 0% APR period on purchases and balance transfers
- 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
27.99% 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
- With cash back rewards for new and existing cardholders
- Does not charge annual fees
- Offers automatic monthly account review
Cons
- No 0% APR period on purchases and balance transfers
- 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
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. Note that it’s a personal credit card with a low minimum security deposit requirement of only $200. Your credit limit will be based on the amount of your security deposit, up to $2,500.
The card also:
- Offers double cash back: Discover will double the cash back you’ve earned at the end of your first year automatically without limits.
- 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. Since it’s a personal credit card and not a business card, make sure to keep your business and personal expenses separate to prevent problems during tax season. For more information, read our guide on how to separate personal and business expenses.
First Progress Select Platinum Mastercard® Secured Credit Card: Best Personal Credit Card With Rewards for Payments
First Progress Select Platinum Mastercard® Secured Credit Card
Intro APR
N/A
Regular APR
18.99% variable
Annual Fee
$39
Credit Needed
Bad, limited
- 1% cash back on payments made to your credit card account
Pros
- No annual fee
- Long 0% APR on both purchases and balance transfers
- Free online reporting with Spend Analysis
Cons
- No sign up bonus
- No ongoing rewards
- Branches are limited to selected states only (Texas, Arizona, California, Florida and Michigan, with select businesses operating in several other states, as well as in Canada and Mexico)
- Reports to all three major credit bureaus
- Pay six months on time and apply to get a second credit card
- Easy, free access to credit education in the First Progress Card Mobile App
- Enrolled automatically in First Progress Rewards upon approval
- Expedited processing service option
Intro APR
N/A
Regular APR
18.99% variable
Annual Fee
$39
Credit Needed
Bad, limited
- 1% cash back on payments made to your credit card account
Pros
- No annual fee
- Long 0% APR on both purchases and balance transfers
- Free online reporting with Spend Analysis
Cons
- No sign up bonus
- No ongoing rewards
- Branches are limited to selected states only (Texas, Arizona, California, Florida and Michigan, with select businesses operating in several other states, as well as in Canada and Mexico)
- Reports to all three major credit bureaus
- Pay six months on time and apply to get a second credit card
- Easy, free access to credit education in the First Progress Card Mobile App
- Enrolled automatically in First Progress Rewards upon approval
- Expedited processing service option
Why we like it: Another personal-secured credit card option for business owners with bad credit is the First Progress Select Platinum Mastercard® Secured credit card. You’ll receive 1x points per dollar for every payment made to your account—this is equivalent to 1% cash back in First Progress Rewards. Your rewards don’t expire while the account is active and in good standing. To redeem rewards, you need at least 500 points, which is equivalent to a $5 statement credit.
Important things to remember about the card are that it:
- Needs a security deposit: Since it’s a secured credit card, you need to make a security deposit between $200 to $2,000. Your credit limit will depend on the amount of your security deposit.
- Reports your transactions to credit bureaus: Your activities, including your payment behavior, will be reported to the three major United States credit bureaus: Equifax, Experian, and TransUnion.
- Builds credit score: Use the card responsibly to improve your credit score. Plus, make on-time payments for at least six consecutive months to qualify for another First Progress credit card.
Similar to other secured business credit cards on this guide, the First Progress Select Platinum Mastercard® Secured is one of our leading secured business credit cards.
OpenSky® Secured Visa® Credit Card: Best Personal Credit Card With No Credit Check
OpenSky® Secured Visa® Credit Card
BEST FOR:
Business owners with a credit score below 580
Intro APR
N/A
Regular APR
22.14% variable
Annual Fee
$35
Credit Needed
Poor to Average
- 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
- Reports to the three main credit bureaus
- Low annual fee
- Can qualify with limited or bad credit history
Cons
- Doesn’t offer 0% introductory APR
- Doesn’t offer rewards for their new and existing cardholders
- Protection against lost, stolen, or damaged cards: Call (800) 859-6412 and report your card was either lost or stolen. OpenSky® will immediately block your card and issue a replacement card with a new card number.
- Flexible Pay: You can change your due date once per year by contacting the customer service department on the phone number found on your billing statement.
- Zero liability protection: You’re protected from unauthorized use of either your card or account information. Call (800) 859-6412 and contact Capital Bank’s customer service department to report suspected fraud.
Intro APR
N/A
Regular APR
22.14% variable
Annual Fee
$35
Credit Needed
Poor to Average
- 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
- Reports to the three main credit bureaus
- Low annual fee
- Can qualify with limited or bad credit history
Cons
- Doesn’t offer 0% introductory APR
- Doesn’t offer rewards for their new and existing cardholders
- Protection against lost, stolen, or damaged cards: Call (800) 859-6412 and report your card was either lost or stolen. OpenSky® will immediately block your card and issue a replacement card with a new card number.
- Flexible Pay: You can change your due date once per year by contacting the customer service department on the phone number found on your billing statement.
- Zero liability protection: You’re protected from unauthorized use of either your card or account information. Call (800) 859-6412 and contact Capital Bank’s customer service department to report suspected fraud.
Why we like it: OpenSky® Secured Visa® Credit Card is also 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.
Note that the card:
- Has an annual fee: It charges an annual fee of $35.
- Lacks rewards: Unlike the Discover it® Secured and First Progress Select Platinum Mastercard® Secured credit cards, which offer rewards, 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.
OpenSky® Secured Visa® Credit Card is also on our list of the top secured business credit cards 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. Keep in mind that it’s a debit card and not a credit card, so you need to load the card first before you can use it.
The card also:
- Offers quick approval: Since it doesn’t need to do a credit check, approval can happen in as quick as five minutes.
- Has a 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.
- Charges a 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. For more information about this debit card, read our Bento for Business Visa Debit Card review.
Emburse Spend Card: Best Prepaid Card With Unlimited Rewards
Why we like it: Other than a business debit card, another option that you may consider is a business prepaid card like the Emburse Spend card. It doesn’t require a personal credit check so it doesn’t matter what your credit score is. Plus, you can earn 1% cash back on all purchases, regardless of spending categories. You can load your Emburse Spend card up to a maximum of $100,000.
Important things to note about the card are that it:
- Offers access to expense management system: You can monitor real-time transactions and request virtual and physical employee cards at no cost.
- Has no annual or monthly fee: Since it doesn’t charge annual or monthly fees, you’ll save on credit costs.
- Cannot build business credit: Using the card won’t affect your personal credit score nor will it build business credit.
Emburse Spend card is also one of our most outstanding business cards for startups because of its easy approval process and unlimited rewards. If you want to learn more about this card, read our Emburse Spend card review.
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 took into account.
Using a business credit card responsibly is a good way to repair your credit. Make sure to:
- 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 closed suddenly 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.
Building your business credit score is also essential because it can help you qualify for a wider range of business credit cards and other forms of business financing. To learn more about the importance of business credit scores, read our article about what a business credit score is and how it works.
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 debit or prepaid 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 secured credit card, you need to have extra funds available that will serve as a security deposit. 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.
