Small business credit cards for fair credit are best for owners with personal credit scores below 670. Few issuers offer business credit cards for fair credit, but the best cards offer competitive APRs, low or no annual fees, and rewards programs. We recommend using these cards until you qualify for a traditional business credit card.
The best small business credit cards for fair credit 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 Sunbelt region wanting an unsecured card
- Bento for Business Prepaid Card: Best for Issuing employee cards without a credit check
- Capital One® QuicksilverOne®: Best for an alternative personal credit card option for fair credit
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
- Earn unlimited 1% cash back for your business on every purchase, everywhere, no limits or category restrictions
- No annual fee
- Build and strengthen credit for your business by using this credit card responsibly
- $0 Fraud Liability if your card is lost or stolen
- Free employee cards, which also earn unlimited 1% cash back on all purchases
- Rewards won't expire for the life of the account, and you can redeem your cash back for any amount
- No foreign transaction fees
| INTRO APR | REGULAR APR | ANNUAL FEE | CREDIT NEEDED |
|---|---|---|---|
| N/A | 24.49% (Variable) | $0 | Average, Fair, Limited |
on Capital One® Spark® Classic for Business's secure website.
Capital One® Spark® Classic for Business is best for business owners seeking to build both personal and business credit and who also want to earn rewards. It charges no monthly or annual fees—a claim not all of the cards on this list can make. It also has a variable APR of 24.49%, which is about average for a business credit card for fair credit.
Capital One® Spark® Classic for Business Costs
- Introductory APR: None
- Ongoing APR: 24.49% variable, which will adjust with the prime rate
- Penalty APR: 30.90% variable, which may be applied if you make a late payment twice within any 12 billing periods; the rate may be reduced after you make 12 consecutive on-time payments
- Late fee: Up to $39
- Foreign transaction fee: None
- Balance transfer fee: None
- Annual fee: None
This business credit card with no annual fee charges a variable ongoing APR of 24.49%. The typical credit card charges about 17% APR, so the interest rate on Capital One® Spark® Classic for Business is fairly high. But when compared with other business credit cards for fair credit, the APR ranks about average.
Capital One® Spark® Classic for Business Rewards
Capital One® Spark® Classic for Business pays 1% cash back on all purchases. Compare that to BBVA Compass Visa® Business Rewards, which offers 3x points on certain bonus category spending. That card is not available nationally. Capital One® Spark® Classic for Business does not offer introductory rewards. This is typical among business credit cards for fair credit.
Capital One® Spark® Classic for Business Additional Features
- Purchase protection: Capital One will replace, repair, or reimburse you for eligible items in the event of theft or damage within the first 90 days of purchase.
- Extended warranty protection: You’ll get additional warranty protection on eligible items that are purchased with your business card, up to one year past the manufacturer’s warranty.
- Auto rental collision damage waiver: You’re covered for damage due to collision or theft when you rent an eligible car with your Capital One® Spark® Classic for Business card.
According to its Visa benefits guide, Capital One® Spark® Classic for Business offers a number of protections against lost or damaged items you purchase with the card, like extended warranty protection. Three other cards on our list offer purchase protection, including the Wells Fargo Business Secured Credit Card. Read more in our Capital One® business card review.
What Capital One® Spark® Classic for Business Is Missing
Capital One® Spark® Classic for Business charges a high variable APR and offers low ongoing rewards compared with small business credit cards for owners with good to excellent credit. But this card is a solid pick compared with other small business credit cards for average credit. Still, you should use this card to build your credit so you can qualify for one that costs less and offers better rewards.
Wells Fargo Business Secured Credit Card: Best Secured Credit Card for Fair Credit
Wells Fargo Business Secured Credit Card
- Cash Back option: Earn 1.5% cash back on every $1 spent
- Reward Points option: Earn 1 point on every $1 spent and receive 1,000 bonus points when your company spend is $1,000 or more in any monthly billing period
- $0 annual rewards program fee
- $500 to $25,000 credit line
- Zero liability protection
| INTRO APR | REGULAR APR | ANNUAL FEE | CREDIT NEEDED |
|---|---|---|---|
| N/A | Prime + 11.90% on purchases | $25 per card | N/A |
On Wells Fargo's Secure Website
The Wells Fargo Business Secured Credit Card is best for owners who can’t qualify for an unsecured card or want a credit limit of up to $25,000. It offers no introductory rewards, however, it allows you to choose between cash back or points rewards. You can earn 1.5% cash back on every purchase, which is potentially more valuable than what you’ll earn with Capital One® Spark® Classic for Business. This card has an ongoing variable APR of 16.65%.
Wells Fargo Business Secured Credit Card Costs
- Credit line: Deposit $500 to $25,000 in a collateral account, which equals the amount of your credit line
- Introductory APR: None
- Ongoing APR: 16.65% variable, which will adjust with the prime rate
- Penalty APR: None
- Late fee: Up to $39
- Foreign transaction fee: None
- Balance transfer fee: Transfers not allowed
- Annual fee: $25 per card (10-card maximum)
The variable APR on the Wells Fargo Business Secured Credit Card is far lower than other business credit cards for fair credit on this list. It is, however, the only secured card on our list, which means you’ll need access to capital to fund your account. Unlike BBVA Compass Visa® Business Rewards or Capital One® Spark® Classic for Business, this Wells Fargo card charges an annual fee.
Wells Fargo Business Secured Credit Card Rewards
The Wells Fargo Business Secured Credit Card offers no introductory rewards. However, it does offer ongoing rewards worth up to 1.5% cash back that are potentially more valuable than what you’ll earn with Capital One® Spark® Classic for Business.
The flat-rate cash-back option will net your business a higher return than the 1% cash-back Capital One® Spark® Classic for Business offers. But it’s lower than the 3x points BBVA Compass Visa® Business Rewards offers in some bonus categories. This Wells Fargo card is the only option on our list that lets you decide whether to receive cash back or points rewards.
Wells Fargo Business Secured Credit Card Additional Features
The Wells Fargo Business Secured Credit Card comes with just one major benefit: purchase protection. Wells Fargo will replace, repair, or reimburse you for eligible items in the event of theft or damage within the first 90 days of purchase. This is similar to the purchase protection offered by Capital One® Spark® Classic for Business, but it also offers extended warranty protection. Read more about it in our Wells Fargo business card review.
What Wells Fargo Business Secured Credit Card Is Missing
This low credit score credit card option isn’t an unsecured credit card, which means you’ll need to deposit money to get a credit line. This card isn’t good for businesses that are short on cash. Additionally, Wells Fargo doesn’t report to personal credit, which means this card will only help you build your business credit. However, 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 Fair Credit in the Sunbelt Region
BBVA Compass Visa® Business Rewards Credit Card
- No annual fee
- Earn 1 point for every $1 in purchases
- Earn 1 additional point for every $1 you spend on qualifying gas, office supply, telephone, and insurance purchases with Bonus CompassPoints
- Build Your Own Rewards® with CompassPoints® Online account services
- Employee cards at no additional cost
| INTRO APR | REGULAR APR | ANNUAL FEE | CREDIT NEEDED |
|---|---|---|---|
| N/A | 10.74% to 24.74% Variable | $0 | Average - Excellent |
On BBVA's Secure Website
BBVA Compass Visa® Business Rewards is best for small business owners who live in the Sunbelt, as this card is only available in seven southern and western US states. BBVA Compass offers an ongoing APR of 10.74% to 24.74%. Owners with fair credit should expect to pay an APR on the high end of the range.
BBVA Compass Visa® Business Rewards Costs
- Introductory APR: None
- Ongoing APR: 10.74% to 24.74% variable, which will adjust with the prime rate
- Penalty APR: 28.74%, which may be applied if you pay late; the issuer does not say how long the penalty APR may be applied
- Late fee: $19 if the previous balance on the statement showing the fee is less than $100, $39 if the balance is $100 or more, and $49 if the penalty APR is in effect
- Foreign transaction fee: 3%
- Balance transfer fee: $10 or 4%, whichever is higher
- Annual fee: None
This is the only 0% APR business credit card on our list. The bottom end of the interest rate range on the BBVA Compass Visa® Business Rewards card is well below the average credit card APR. Business owners with fair credit are unlikely to qualify for the lowest rate. The top end of the range is slightly less than you’d pay with Capital One® Spark® Classic for Business. As you improve your credit, you can request an interest rate reduction.
BBVA Compass Visa® Business Rewards Card Rewards
- 3x points for every $1 you spend on office supply store purchases.
- 2x points at gas stations and restaurants.
- 1x points for all other purchases.
BBVA Compass Visa® Business Rewards are offered as part of a tiered program. This card offers potentially the most lucrative rewards among any card on our list, particularly if your business has a large budget for office supply purchases. Owners that spend significantly on gas will also 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.
BBVA Compass Visa® Business Rewards Additional Features
- Purchase protection: BBVA Compass will replace, repair, or reimburse you for eligible items in the event of theft or damage within the first 90 days of purchase.
- Travel accident insurance: You’ll receive coverage up to $500,000 for travel accidents when transportation is purchased with your business credit card.
- Auto rental collision damage waiver: You’re covered for damage due to collision or theft when you rent an eligible car with your BBVA Compass Visa® Business Rewards card.
- Savings through Visa: Enroll your card with Visa® SavingsEdge and shop at participating merchants to save up to 15%, including gas stations and restaurants.
The BBVA Compass Visa® Business Rewards card offers protection against theft and damage of items paid for with the card. It also includes a travel benefit not seen elsewhere. While Capital One® Spark® Classic for Business offers similar purchase protection and auto rental insurance. It also offers extended warranty protection, while the BBVA Compass card does not.
What BBVA Compass Visa® Business Rewards Is Missing
Unlike the other business credit cards on our list, 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 Capital One® Spark® Classic for Business, which is available nationally. It also no longer has introductory offers, which is common among fair-credit business cards.
Bento for Business: Best Prepaid Credit Card for Fair Credit
Bento For Business Visa® Debit Card
- Instant Decision
- No Credit Check Required
- One-click card controls & expense reports
| 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 |
on Bento For Business Visa® Debit Card's secure website.
Bento for Business is best for businesses seeking a prepaid credit card option that requires fewer qualifications than traditional small business credit cards. Bento is a good choice for businesses that don’t need many cards, as the issuer offers the first two for free. If you need more than two cards, you’ll pay a monthly fee of $29 or more. No other card on our list charges a monthly fee.
Bento for Business Costs
- First two business prepaid cards: Free
- Three to 10 cards: $29 per month
- Eleven to 25 cards: $69 per month
- Unlimited cards: $149 per month
Bento will waive the monthly fee if your business spends $20,000 or more per month. Unlike other prepaid cards, Bento does not charge transaction, new card issuance, setup, or load fees. As a prepaid card, there also is no APR and no annual fee.
Bento for Business Rewards
Like most prepaid business cards, Bento for Business offers no rewards. Every other card on our list offers the opportunity to earn rewards on card spending.
Bento for Business Additional Features
- Auto rental collision damage waiver: Receive primary rental coverage when you rent a car for business. You may be reimbursed for up to the actual cash value of the vehicle in case of collision or theft.
- Purchase protection: When you use your Bento for Business prepaid debit card and your purchase is stolen or damaged within the first 90 days, you’re covered up to $10,000 per claim and $50,000 per year. The item will either be repaired or replaced, or you will be reimbursed.
Bento for Business offers several features that other cards on our list offer, but that aren’t particularly common to business prepaid cards, like purchase protection and rental car insurance. Capital One® Spark® Classic for Business offers similar purchase protection and auto rental insurance. It also offers extended warranty protection, while Bento for Business does not. Read more in detail in the Bento for Business review.
What Bento for Business Is Missing
Bento for Business isn’t an unsecured credit card, and so you can only spend up to the amount you have loaded on the card. The card also doesn’t report activity to the credit bureaus, so it won’t help you improve your credit score. And, unlike other business credit cards for average credit, Bento doesn’t offer any rewards for your spending.
If improving your credit and earning rewards are important to you, consider another credit card. The Capital One® Spark® Classic for Business card reports payments to credit bureaus and offers ongoing rewards.
Capital One® QuicksilverOne® Rewards: Best Personal Credit Card for Fair Credit
QuicksilverOne® from Capital One®
- Earn unlimited 1.5% cash back on every purchase, every day
- Get access to a higher credit line with Credit Steps after making your first 5 monthly payments on time
- Enjoy unlimited access to your credit score and tools to help you monitor your credit profile with CreditWise from Capital One®
- No Foreign Transaction Fees You won’t pay a transaction fee when making a purchase outside of the United States.
| INTRO APR | REGULAR APR | ANNUAL FEE | CREDIT NEEDED |
|---|---|---|---|
| N/A | 26.74% Variable | $39 |
On Capital One's Secure Website
The Capital One® QuicksilverOne® Cash Rewards personal credit card is best for owners who don’t like the available options for the best business credit cards for average credit. It offers a solid fixed-rate return on all purchases. The annual fee is $39, which is higher than other options on our list. You’ll pay a variable APR of 26.99%, which is higher than other cards on this list.
Capital One® QuicksilverOne® Rewards Costs
- Introductory APR: None
- Ongoing APR: 26.99% variable, which will adjust with the prime rate
- Penalty APR: None
- Late fee: Up to $39
- Foreign transaction fee: None
- Balance transfer fee: None
- Annual fee: $39
The variable APR for the Capital One® QuicksilverOne® Cash Rewards card is the highest annual fee of any card on our list. The only other card on our list to charge an annual fee is the Wells Fargo Business Secured Credit Card ($25).
Rewards on Capital One® QuicksilverOne® Rewards
The Capital One® QuicksilverOne® Cash Rewards card offers no introductory rewards. You’ll earn 1.5% cash back in ongoing rewards on every purchase. That’s more than the 1% cash back Capital One® Spark® Classic for Business pays, but it’s lower than you could earn in certain bonus categories with the BBVA Compass Visa® Business Rewards card.
Capital One® QuicksilverOne® Rewards Additional Features
- Extended warranty protection: You’ll get additional warranty protection on eligible items that are purchased with your business card, up to one year past the manufacturer’s warranty.
- Auto rental collision damage waiver: You’re covered for damage due to collision or theft when you rent an eligible car with your Capital One® QuicksilverOne® Cash Rewards credit card.
- Travel Accident Insurance: Get travel insurance up to $100,000 for Visa Platinum, or up to $250,000 for Visa Signature, when you make your travel purchase with your Capital One® QuicksilverOne® Cash Rewards card.
Capital One® Spark® Classic for Business offers similar purchase protection and auto rental insurance. It also offers extended warranty protection, while Capital One® QuicksilverOne® Cash Rewards card does not. Cardholders that qualify for the Visa Signature card will have $150,000 more in travel accident insurance coverage than with the Visa Platinum.
What Capital One® QuicksilverOne® Rewards Is Missing
Most personal credit cards that offer cash-back rewards of 2% or less don’t charge an annual fee. You’ll need to calculate whether you’ll spend enough with this card to justify the $39 annual fee or if a card that offers smaller rewards like Capital One® Spark® Classic for Business (1%) and no annual fee, is a better fit.
What a Small Business Credit Card for Fair Credit Is
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 small business credit cards, you’ll need a score of 670 (good credit score) to 850 (highest possible credit score). If your personal credit score is below 580, consider a secured business credit card or other low credit score credit cards. 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 small business credit cards, including APRs of 30% or higher. They also offer lower rewards and fewer benefits, like extended warranty protection. But they provide owners a way to build credit with an unsecured business credit card.
How We Evaluated Small Business Credit Cards for Fair Credit
We looked at more than a dozen personal and small business 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. SEE METHODOLOGY IN DETAIL
In our evaluation of business credit cards for fair credit, we considered the following criteria:
- Fees: Monthly and annual charges assessed on a small business credit card.
- APR: The interest rate charged if you don’t pay off your bill in full each month.
- Rewards: Points or cash back you’ll earn when you use your business credit card. Fair credit business cards should offer at least 1% back, or slightly lower than the best cash-back business cards.
- Additional features: Benefits offered to cardholders, like extended warranties and free auto insurance on car rentals.
Most business credit cards review your personal credit report and score for card eligibility. You’ll need a personal credit score of at least 580 to qualify for business credit cards for fair credit. These cards are ideal for owners looking to rebuild their personal credit and improve their business credit profile. Once your credit score has increased to 640 and higher, you’ll be able to get a better business credit card.
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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. But 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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