Credit Cards for Entrepreneurs with Mediocre Credit Scores
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The Best Credit Cards for Entrepreneurs with Mediocre Credit Scores
May 31, 2018
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The Best Credit Cards for Entrepreneurs with Mediocre Credit Scores

Whether you’re an entrepreneur or an ordinary consumer, your credit score is likely one of the most important numbers in your life. Your credit score determines your ability to access credit, the interest rates you’ll pay, and the loan terms you’ll be able to qualify for.

Unfortunately, having a mediocre credit score can make it much more difficult to start your own business. Typically, a “fair” credit score is one that is between 620 and 659. Your credit score is something that can be improved, but this process often takes a significant amount of time. Luckily, even if you’re looking to start or expand your business soon, there are still several options available.

1. Capital One Spark Classic for Business

The Capital One Spark Classic for Business is a card that is specifically designed for business owners with fair or limited credit scores. The card is quite desirable because it’s easy to apply for and offers 1 percent cash back on all purchases made with the card. Additionally, the card doesn’t have an annual fee, which will save your business money. However, the average APR for someone with a fair credit score is 22.34 percent. This figure can be considered quite high for business owners who plan on having a rolling balance.

2. Capital One Platinum Credit Card

The Capital One Platinum Credit Card, which is provided through the MasterCard card network, is considered by some experts to be the most flexible card available to those with fair credit. The recommended score for applying is somewhere between 630 and 689. The card has no annual fee, you can expand your credit line if you’re able to pay on time, and you’ll be able to choose your own due date. The biggest drawback of this card is that the ongoing APR of 24.99 percent will force you to repay your debts quickly.

3. First Progress Platinum Select MasterCard Secured Credit Card

The First Progress Platinum Select MasterCard is a secured credit card, which means that you’ll have to submit between $200 and $2,000 worth of collateral with your application. However, because the card is secured, it’s very easy to qualify for and can be accessed by individuals whose credit score is in the 500s or lower. The card has an annual fee of $49, and the regular APR for the card is only 9.99 percent, which is considerably lower than the unsecured cards mentioned above. Additionally, regular reporting to all three major credit bureaus makes this a good card to help repair your credit score.

4. Chase Slate

The Chase Slate credit card has a recommended credit score of 630 to 719. The card has been noted for being ideal for balance transfers, which can be great for business owners using multiple accounts. There is a 15-month introductory APR of zero percent, which is very appealing for entrepreneurs who are looking to quickly get started. However, the rate will eventually be raised to a variable rate of 16.49 to 25.24 percent, depending on your credit score.

5. Amazon.com Store Card

The Amazon.com Store Card has a high regular APR of 27.49 percent, but the many benefits associated with this card may be able to justify the high cost of future borrowing. Typically, the recommended credit score for this card is 640 to 699. Benefits of this card include zero percent purchase APR for the first 6 to 24 months, a $10 Amazon.com gift card upon the approval of your application, and the option for Amazon Prime Store Cardholders to earn 5 percent back on purchases made via Amazon. The card may be an excellent choice for entrepreneurs who frequently shop at Amazon for business-related expenses.

Conclusion

Even if you have fair credit, there are still several reasonable credit card options available. The card that’ll be best for your business will depend on your current financial needs, your willingness to leverage collateral, your desired APR, and the types of benefits you’re interested in.

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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