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How You Can Get Business Credit Cards Even With Bad Credit

A business or a corporate credit card can help you obtain the buying power you need to run your company and keep your business’s expenses on track. Some cards also reward you in the form of cash back or airline miles for all your business purchases. While the business lending landscape has been constantly improving over the past few years, it is still challenging for companies that have less than stellar credit histories to obtain credit. Many banks are not willing to provide loans to business owners who have bad credit scores. Here is everything you need to know about getting business credit cards with bad credit.

Advantages of bad credit business credit cards

There are several advantages of such cards including, avoiding mix-up of personal and business transactions, easy management of employee spending, easy itemization of business expenditures, a good start for establishing excellent business credit, and huge discounts!

Budding entrepreneurs with bad credit usually hesitate to apply for a corporate credit card and small business loans. They believe that their poor credit history may be a stumbling block in their path to obtain corporate credit. However, there are still a wide variety of options available if you’re an entrepreneur with bad credit.

Apply for bad credit business credit cards at your own financial institution

You don’t have to go elsewhere to apply for your card. Consider applying at your existing financial institutions and banks. This will help you speed up the loan approval process. Your bank already has access to your financial records on file and they might consider your application despite your bad status.

Stick with one card company

There may be several offers, but it is always best to avoid card hopping and stick with one card company while you are trying to build your credit history. Do not sign up for multiple card offers in haste; this will not only make it complicated for you to manage your finances, but will also impact your credit score negatively.

Keep all your financial documents ready

Despite your poor credit status, the chances of you getting a business credit card are high if you can present the documents that will testify to your company’s financial stability. You can submit updated balance sheets and income statements together with your application form.

Establish a Separate Credit Line

Establishing a separate business credit that is different from one’s personal line is a logical way for entrepreneurs with bad credit. You can start by creating your own business credit account and by paying all your business bills on time. Ask your business credit card company if they provide financial reports to credit bureaus. And if they are not already doing so, you can request them to do so. Most companies are willing to do this at your request.

Make it a point to avoid your corporate credit card’s cash advance feature, as this will only incur more fees and costs. You must only use the account debt when your small business needs immediate funds. Paying online for your card bills will also help you save on processing fees rather than through your local branch or by post. Bear the above points in mind and avail business credit cards, even with bad credit!

Business Credit Card Benefits

Business credit cards are a modified version of a personal credit card. Here are some of the most common incentives for using a Business Credit Card for your own business.

Managing Personal Expenses and Business Expenditures

For the small business owner operating from home, or for those who just need an easier way of separating personal finances from business expenses, a business card may be the solution to accurately managing both. Besides the detailed monthly reports included with the statements, yearly summaries may be requested or provided that simplify bookkeeping and cut down on administrative costs.

Owners of small businesses who may have several employees who have employee business credit cards on the owner’s account are able to quickly monitor spending, and also set individual credit limits for each employee card. Expenses and spending habits can then be sorted by department, making everything from organizing and paying taxes to ordering inventory considerably easier.

Business Credit Cards Low Interest Rates

A variety of cards offer low interest rates to attract new businesses, with some even offering deals such as 0% for an introductory period of time. Introductory periods, depending on the business credit card, usually last anywhere from as little as three months to as long as a year. The key is keeping track of this period to ensure that either the bill is paid in full to avoid accruing finance charges, or preparing for an adjustment in the monthly amount due.

Some offer attractive grace periods, allowing smaller business to make purchases without worrying about paying the bill in full at the end of every billing period. An account in good standing will usually qualify for a lower interest rate after a certain amount of time. After the introductory period, inquire about any lower available rates for your card rather than switching to another company or opening another account.

While even a small business may need more than one credit card, having too many open accounts often reflects poorly on a credit report, causing future creditors to consider the company a potential risk.

Incentives and Rewards

Nearly all offer some type of incentive or reward program, helping cardholders save money and earn discounts on other services or goods. Cash back bonuses are an attractive feature for owners of smaller businesses or entrepreneurs who may have few resources.

Some companies feature promotional periods where every dollar spent earns a point redeemable for future purchases through various merchants. Some of these points may expire after a certain time, so be sure to pay attention to dates, or use a card with no time limits on points earned.

Merchant discounts are yet another incentive for small business owners as many credit cards partner with other companies, often referred to as affiliates, to offer customers discounts on purchases such as office supplies, or travel expenses. Gas rebates and airline travel miles are also common incentive programs for business owners to take advantage of.


Since most are recognized globally, foreign travel and conducting business in other countries is decidedly more convenient. Also, unlike business checks, credit cards may also be used electronically for purchases made over the internet or telephone, and there’s never any time wasted waiting for the checks to clear through international banks.