Small business credit cards for fair credit are best for owners with personal credit scores below 670. While not many issuers offer these types of cards, the available options include competitive annual percentage rates (APRs), low or no annual fees, and rewards programs. We recommend using these cards until you qualify for a traditional small business credit card.
The best small business credit cards for fair credit of 2020 are:
- Capital One® Spark® Classic for Business: (Best overall) Best for building credit with an unsecured business card
- Wells Fargo Business Secured Credit Card: Best for firms that can’t qualify for an unsecured credit card
- BBVA Compass Visa® Business Rewards: Best for businesses in the Sun Belt region
- Bento for Business Prepaid Card: Best for issuing employee cards without a credit check
For more details on how we evaluate business credit cards for this list, see our methodology.
Capital One® Spark® Classic for Business: Overall Best Business Credit Card for Fair Credit
Capital One® Spark® Classic for Business
Best For: Fair credit business owners (580 to 669)
| Intro APR | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|
| N/A | 26.99% (Variable) | $0 | Average, Fair, Limited |
Why we like it: Capital One® Spark® Classic for Business allows you to build both your personal and business credit simultaneously. It’s an ideal fit for business owners with personal credit scores below 670 who also want to cash in on rewards. With this business credit card, you can earn unlimited fixed-rate rewards with no limits or category restrictions.
You won’t be charged any monthly or annual fees—a claim not all of the cards on this list can make. Any card that charges no annual fee, lets you build your credit, and earn rewards is a standout card if your personal credit score is below 670. Once your score improves, you can get a traditional business card.
While this easy approval credit card gives you access to excellent business features, it charges an ongoing APR and penalty APR that are higher than average credit card interest rates. This card’s APRs are comparable to other business credit cards for fair credit. You should always pay your credit card bill on time to avoid getting hit with the penalty APR.
Wells Fargo Business Secured Credit Card: Best for Firms Who Can’t Qualify for an Unsecured Card
Wells Fargo Business Secured Credit Card
Best For: Business owners with poor credit
| Intro APR | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|
| N/A | Prime + 11.90% on purchases | $25 per card | N/A |
Why we like it: The Wells Fargo Business Secured Credit Card gives business owners who can’t qualify for a traditional unsecured credit card access to credit limits up to $25,000. Along with large limits, this card allows you to choose between cash back or points rewards. You can either earn 1.5% cash back or one point per $1 spent. However, this card has no sign-up bonus.
Secured credit cards have credit limits equal to a cash deposit made by the business owner held in a collateral account. This means you must have cash on hand to access credit through this card. For example, if you deposit $5,000, then your account’s limit will be $5,000.
What’s more, Wells Fargo doesn’t report to consumer credit bureaus, which means this card will only help you build your business credit. Wells Fargo periodically reviews your credit history and, depending on different factors, may upgrade you to an unsecured business card.
BBVA Compass Visa® Business Rewards: Best for Sun Belt Region Business Owners
BBVA Compass Visa® Business Rewards Credit Card
Best For: Business owners who live in the Sun Belt region
| Intro APR ?0% APR for 9 months on purchases | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|
| 0% on purchases | 9.24% to 23.24% Variable | $0 | Average - Excellent |
Why we like it: BBVA Compass Visa® Business Rewards gives small business owners who live in the Sun Belt region and have personal credit scores below 670 access to business financing.
This card potentially offers the most lucrative rewards among the cards on our list, particularly if your business has a large budget for office supply purchases. Owners who spend significantly on gas also will benefit from these category rewards. No other card on our list offers tiered rewards, and none offer ongoing rewards for category purchases that pay as well as this card.
The BBVA Compass Visa® Business Rewards card is not available nationally. Business owners in just seven states are eligible to apply: Alabama, Arizona, California, Colorado, Florida, New Mexico, and Texas. If you live outside of these states, consider our top pick, which is available nationally.
Bento for Business: Best for Employee Cards & No Credit Check
Bento For Business Visa® Debit Card
Best For: Managing employee expenses without a credit check to qualify
| Number Of Cards | Monthly Cost | Daily Load Limit | Daily Spend Limit |
|---|---|---|---|
| Unlimited | $0 for the first 2 cards. $29-149 monthly for more | None | $25,000 |
Why we like it: Bento for Business is a prepaid credit card option that requires fewer qualifications than traditional small business credit cards. It’s a solid choice for owners who don’t need many cards, as your first two cards are free to own. You’ll need to pay a monthly fee of at least $29 if you need more than two cards.
While Bento for Business has fewer requirements and offers business features like employee cards, it’s missing a handful of perks found on many traditional business credit cards. Because it’s not an unsecured credit card, you can only spend up to the amount you load on the card. It also doesn’t report activity to the credit bureaus, so it won’t help you improve your credit score.
How We Evaluated Small Business Credit Cards for Fair Credit
We looked at more than a dozen credit cards for fair credit. Most aren’t worth recommending because they charge excessive fees, including annual fees and charges to open a credit account. We looked for cards that offer owners a relatively inexpensive way to improve their credit and eventually graduate to a better small business credit card. Ongoing reward programs were seen as an added benefit.
What Is a Business Credit Card for Fair Credit?
Small business credit cards for fair credit are designed for business owners with personal credit scores between 580 and 669. To qualify for most other business credit cards, you’ll need a score of at least 670. If your personal credit score is below 580, consider a secured business credit card. Secured cards have credit limits equal to a cash deposit held in a collateral account.
Small business credit cards for fair credit may charge higher fees than other credit cards, including APRs of 30% or more. They also offer lower rewards and fewer benefits like extended warranty protection. However, they provide owners a way to build credit with an unsecured business credit card.
Bottom Line
Know your credit score before applying for a credit card. If your score is less than 670, you may be a good candidate for a small business credit card for fair credit. Rewards will be less lucrative on this type of card, and your fees will likely be higher. However, this doesn’t have to be your go-to card forever. Use the card responsibly to improve your credit and gain access to better business cards.
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