Top Choice for a Business Credit Card if You Have a Fair Credit

As a small business owner, it can sometimes take a little time to build credit for your business. If your business is new, you may not have enough credit established to get you into the higher credit ranges. And, sometimes until you have built your business credit rating, creditors will rely on your personal credit history. If your personal credit rating isn’t in the excellent range, you could run into yet another roadblock. For new business owners and those who are working on establishing a positive credit rating for their business, however, there are business credit cards designed for fair credit that are easier to qualify for and can get you going. Here are our picks and the details for the best business credit cards for fair credit.

Best Business Credit Card for Fair or Average Credit

Capital One Spark Classic for Business

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intro purchase APR no intro offer	regular APR23.49 - 23.49% (V)
intro BT APR no intro offer	no BT fee
rewards 1%

fair credit required

no annual fee

good card for an average credit

1% cash back on all purchases

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Capital One provides a full line of various small business credit cards. The Capital One Spark Classic for Business, however, is designed for small business owners with average or fair credit ratings. The variable APR is 23.24%, and there is no annual fee or foreign transaction fee. As a bonus, you also earn 1% cash back on every purchase you make with the card. It also includes benefits for small business owners, such as year-end summaries, free employee cards, and small business customer service representatives who can help you with your business questions.

Advantages of the Capital One Spark Classic for Business

• Easy to qualify for with fair or average credit
• Business benefits
• No annual fee or foreign transaction fee
• 1% cash back for purchases

Disadvantages of the Capital One Spark Classic for Business

• High variable APR of 23.24%
• No bonus categories for rewards

Bottom Line

If you are working on improving the credit rating for your business, this card is one of the most popular business credit cards available. Plus, you earn cash back, and there are very few fees to use the card. However, keep in mind that the APR is among the highest, which can add up if you consistently carry a balance from month to month.

Best Business Credit Card for Fair to Excellent Credit

If your credit rating falls into the upper end of the average credit rating, you could qualify for a card that typically requires excellent credit.

Capital One Spark Cash for Business

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intro purchase APR no intro offer	regular APR17.49% (V)
intro BT APR no intro offer	no BT fee
rewards 2%	+$500 bonus

• $500 cash bonus for spending $4,500 in the first 3 months

excellent required

$0 first-year annual fee, $59 after

earn 2% on all purchases, get up to 5300 sign up bonus by spending $4,500 on the card

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The Capital One Spark Cash for Business Credit Card isn’t specifically for business owners with fair credit, you may be able to qualify if your rating is closer to the top than the bottom. This card awards 2% cash back on all purchases made with the card. New cardholders can get a bonus of $500 if you spend $4,500 in purchases within the first three months of opening the account. Plus, you get free employee cards as well as small business tools such as quarterly reports. The APR is variable at 17.24%. The annual fee of $59 is waived the first year. There is no foreign transaction fee.

Advantages of the Capital One Spark Cash for Business

• 2% cash back on purchases
• $500 sign-up bonus
• No foreign transaction fee

Disadvantages of the Capital One Spark Cash for Business

• Annual fee
• Requires higher credit rating

Bottom Line

Your business credit may not be as bad as you think, which means you could qualify for a card that usually requires a higher credit rating. This card comes with a couple of benefits that can be worth hundreds of dollars for your business. Plus, there is no foreign transaction fee.

Best No Credit or Bad Credit Business Credit Cards

If you aren’t able to qualify for the business cards that are available for fair or average credit, you can work on improving your credit history with a secured business credit card. These cards operate similarly to secured cards for consumers with poor or no credit and require a security deposit while you use the card.

Wells Fargo Business Secured

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intro purchase APR no intro offer	regular APR15.65% (V)
rewards 1.5 points/$1

• 1.5 bonus points for every $1 in purchases

 

no credit required

$25 annual fee

1.5 points per $1

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If you decide on a secured business credit card, it’s important to choose one that you can trust. Many business owners trust the Wells Fargo Business Secured Credit Card, simply because it is backed by a well known and successful bank. Cardholders are required to provide a security deposit between $500 and $25,000. You receive a card with a credit line equal to the amount of your deposit. This card awards 1% cash back on all your purchases. The variable APR is 18.99%, and the annual fee is $25. There is no foreign transaction fee. Your account is reviewed periodically, and as your credit improves, you could qualify for an unsecured business credit card.

Advantages of the Wells Fargo Business Secured Credit Card

• Opportunity to build credit rating
• Qualify for an upgrade over time
• No foreign transaction fee
• 1% cash back

Disadvantages of the Wells Fargo Business Secured Credit Card

• Annual fee of $25
• Requires security deposit

Bottom Line

If you are running into problems qualifying for a business credit card, even with fair or average credit, this card is one that can help get you on the right path. There is an annual fee, but it’s relatively low for a secured credit card. There’s no foreign transaction fee, which can save your business some money on foreign transactions. And, if you manage the account responsibly, you could qualify for an upgrade to an unsecured business credit card. Furthermore, this card awards 1% cash back, which isn’t a feature that you get with all secured credit cards.

Why Your Business Needs a Good Credit Score

It’s important that you build a good credit score for your business not just because it will help you grow and expand your business operations in the future, but because many business credit cards offer valuable rewards. For instance, if you need office furniture or equipment to get started, you can take advantage of a sign-up bonus worth hundreds of dollars or a 0% introductory APR for purchases.

Tips for Improving Your Small Business Credit Rating

When considering applicants for small business credit, card issuers and lenders often consider both your personal and your business credit scores. This can be helpful if you have excellent personal credit, but it can make things more difficult if your personal credit isn’t that great. In any event, in order to increase your small business credit rating, you should keep the following tips in mind.

• Clean up your credit. Even if you don’t have any business credit yet, it’s important to keep your personal credit reports clean as well. Make sure you pay down your balances and take care of any accounts that are being negatively reported.
• Pay your balances in full monthly. When you’re building a business, every dollar counts. Pay your balances in full each month so you can avoid paying interest on your purchases.
• Make payments on time. It’s crucial that you consistently make your payments on time every month. Late payments and missed payments can harm your credit score and keep you from qualifying for better small business credit offers.
• Establish credit with vendors. If you have suppliers or other vendors that you use for your business, see if your purchases with them can help build your business credit. You can also ask them to report your payments to a business credit bureau so your purchases with vendors can help build your credit.
• Make sure lenders report to credit bureaus. When you do get credit with a lender, make sure they report your activity to the credit bureaus. If they don’t, the line of credit won’t do anything to help you increase your credit rating.

Read more about our other business credit card recommendations here.

Christina Majaski More than 10 years experience covering credit cards and personal finance

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