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5 Credit Cards for Business Owners with Bad Credit
February 06, 2018
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5 Credit Cards for Business Owners with Bad Credit

If you own a small business, your personal credit score may affect your ability to secure business funding. Ironically, one of the ways you can improve your credit score is opening a credit card account and making your payments in full and on time.

Secured credit cards can be among the best credit cards for business owners with bad credit scores. These cards require a security deposit in exchange for providing you with a relatively reasonable interest rate. Unsecured cards don’t require an initial down payment, but because of this, they will usually have higher interest rates.

Until your credit score has improved, these credit cards should be considered as viable options:

Primor Secured Visa Gold Card

The Primor Secured Visa Gold Card requires a $200 minimum deposit and also imposes a $49 annual fee. However, having a 9.99 percent APR makes this card notably desirable. The card has no minimum credit requirements, zero processing fees, and is comparatively easy to apply for.

The credit limit on this card is $5,000, and because it reports to each of the three primary credit bureaus, responsible usage of this card is an excellent way to begin rebuilding your credit score.

Capital One Spark Classic for Business

Though the Capital One Spark Classic for Business has a relatively high interest rate (a variable rate of up to 23.99 percent APR), there are still many reasons that customers consistently give it positive reviews. The card has no annual fee and is also unsecured, meaning you do not need to make any initial down payments. The card also offers users 1 percent cash back on all purchases. If your business can quickly pay off debts, this card may be worth considering.

Wells Fargo Business Secured Credit Card

The Wells Fargo Business Secured Credit Card offers lines of credit ranging from $500- $25,000. The size of the line of credit depends on how much you’re willing to initially deposit. The card offers up to 1.5 percent cash back on certain purchases and allows business owners to issue up to 10 different employee cards (with a $25 annual fee per card). The APR for this card is 9.90 percent plus the Wall Street Journal prime rate, which was 4.50 percent as of December 2017.

Applied Bank Secured Visa Gold Preferred Credit Card

The Applied Bank Secured Visa Gold Preferred Credit Card is very similar to the Primor card mentioned above (#1). The card is secured with a minimum deposit of $200, has a $48 annual fee, and has a regular APR of 9.99 percent. Both of these cards have a maximum credit limit of $5,000. The card is an excellent option for people who are unsure how much credit they actually need because it allows you to adjust your credit limit at will by increasing your total deposit.

Discover it Secured Card

The Discover it Secured Card has a relatively high interest rate (a variable rate of up to 24.24 percent APR), but it also offers users a tremendous amount of benefits. The card offers 2 percent cash back at all gas stations and restaurants, so it is great for businesses that require a lot of driving or dining (think client meetings). The card also offers 1 percent cash back on all other purchases. After you’ve been using the card for eight months, Discover will review your credit history and decide if you’re eligible to transition to an unsecured line of credit (there is an initial minimum deposit of $200).

Ultimately, the credit card that is going to be right for you and your organization will depend on a variety of personal factors. If you think you can pay off your debts quickly, then you may want to consider getting a card that offers significant rewards in exchange for a high interest rate. If you want to be conservative and pay off your debts in the future, then you might benefit from a card with the lowest interest rates available. Before making any final decisions, you should carefully think about the costs associated with each card and the risks you’re willing to take.

Fora Financial

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

Andrew Paniello
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Andrew is an experienced writer with a degree in Finance from the University of Colorado. His primary interests are investing, entrepreneurship, and economics.
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