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Whether you’re launching a new business or looking for financing for your established company, it can be a real challenge to secure financing when you have no business credit history.
If your business is strapped for capital and needs quick, reliable financing, obtaining a business credit card might be your best option. Even without any credit history to your business’s name, it is still possible to find creditors willing to offer you a card based on your personal credit history. Check out our quick how-to guide to help you find a business credit card without any business credit history.
What Are Business Credit Cards?
Like regular credit cards, business credit cards enable cardholders to pay for goods and services on the promise of the holder to repay the card issuer for the amount charged. Usually offered by banks, credit cards allow users to borrow money for payments at a predetermined fee. Repayments after a grace period accrue interest at a floating or predetermined rate.
Business credit cards are issued in the business’s name, rather than the owner’s name. These cards can only be used to issue payments for business expenses.
Why Your Business Needs a Credit Card
Business credit cards for a new business, even one with no credit history, offer several advantages over other forms of financing. If used responsibly, they can be instrumental in jump-starting your business’s financial track record. Welcome bonuses are often extended to cardholders in search of startup business credit cards with no credit.
When applying for a credit card for the first time, it isn’t uncommon to find that multiple card issuers are competing to win over your interest. Typically, lenders will try to entice your business by offering extra rewards points or cashback benefits for those that spend past a threshold point.
Another great reason to apply for small business credit cards with no credit history is to take advantage of the limited-time 0% Annual Percentage Rate (APR) offers. Loans and credit cards with low or no APR have much lower fees and monthly payments, which can lead to serious savings over time. A 0% intro APR grace period allows you to borrow money at virtually no cost.
Once approved, your business can look forward to taking advantage of several great perks and benefits that only credit-card holders have. For instance, the best small business credit cards can offer benefits such as:
- Cash back of up to 2% on all purchases
- Air travel benefits and hotel discounts
- Up to $1,000 in cash travel bonuses
- Loyalty reward program points
- No annual fees
Qualifying for a Business Credit Card
If you want to obtain credit cards for new businesses with no credit history, be ready for a bit of a challenge. Every small business owner needs to be prepared to be turned down by a few potential lenders before finding one willing to offer them a card.
Don’t give up hope, though; startup business owners are still eligible to apply for some credit cards, even with no credit history. To apply for a business credit card without an established history, an impressive personal credit score might be required. Personal FICO credit scores are rated on the following scale:
- Very Poor: 300-579
- Fair: 580-669
- Good: 670-739
- Very Good: 740-799
- Exceptional: 800-850
You could be asked to secure the card by making a deposit. The amount put down in the deposit account will affect the total amount of credit issued to the cardholder, with higher collateral bolstering your chances of getting approved for a higher limit.
Regardless of whether the credit card is secured, the cardholder must regularly make repayments on the borrowed amount as they would with a regular card. If you obtain business credit cards with no credit history, you’ll likely borrow at higher interest rates. However, if you build a positive credit history over time, the interest rate and annual fee can eventually decrease.
Best Business Credit Cards for No Credit History
Fortunately, there are plenty of options for business credit cards for no credit holders.Let’s break down some of the most popular business credit cards for new business owners.
|Card||APR||Annual Fees||Minimum Credit Score||Perks|
|Capital One Spark Classic for Business||26.99% (V)||None||580||1% cash back rewards|
|OpenSky Secured Visa||17.39% (V)||$35||No credit check required for approval||No one-time fees|
|First Progress Platinum Select Mastercard||13.99% (V)||$39||No required minimum score||No one-time fees; deposit can be refunded anytime|
|Blue Business Plus Credit Card from American Express||13.24%||None||700||Introductory 0% APR for the first 12 months;|
2x cash back on first $50K spent each year
Capital One Spark Classic for Business
The Capital One Spark Classic for Business is a reliable business credit card that has a long history of providing fair and accessible credit for small businesses. With a $0 annual fee and up to 1 percent cash back on all purchases, the Spark Classic provides the perfect platform for building or rebuilding business and personal credit.
Capital One’s Spark Classic for Business is accessible to applicants with a credit score of 550 or higher. For these reasons, the Spark Classic stands out as an ideal credit card for a new business with no credit history.
- $0 annual fee
- 580+ minimum credit
- 1% cash back rewards rate
- No welcome offer
- 26.99% regular APR (V)
OpenSky Secured Visa
There are few cards better suited for the first-time credit card applicant than the OpenSky Secured Visa card. It’s innovative because it doesn’t require candidates to undergo a credit check.
OpenSky reports to all 3 credit bureaus, which is good news for startup and/or creditless businesses that need to quickly build credit. However, all cards issued by OpenSky need to be secured by a deposit, which can be as low as $200.
- No one-time fees
- $35 annual fees
- 17.39% APR (V)
- No credit check
First Progress Platinum Select Mastercard
The First Progress Platinum Select Mastercard is one of the premier credit card programs for a small business with no credit history. Featuring no one-time fees and low annual fees, the Platinum Select Mastercard ranks among the best-secured credit cards for first-time cardholders with limited personal credit history.
Unfortunately, the Platinum Select Mastercard is unavailable in some states, including New York, Arkansas and Wisconsin. However, for those who can get their hands on it, like OpenSky Visa, First Progress Mastercard reports monthly to all 3 credit bureaus, making it a good choice for building a reputable credit score.
- No one-time fees
- $39 annual fees
- 13.99% APR (V)
- Online application
- Receive deposit back anytime
Blue Business Plus Credit Card from American Express
The American Express Blue Business Plus is an excellent credit card for a new business with no credit history but good personal credit standing. It offers a limited-time 0% APR on all purchases and transfers within 12 months, after which the rate rises to a minimum rate of 13.24%.
Although there are no annual or monthly fees associated with this card, getting approved for the American Express Blue Business Plus card requires a personal credit score of 700 or higher. Plus, the card offers double the rewards points on the first $50,000 spent every year.
- 12-month 0% introductory APR
- 2x reward points for first $50,000 spent/year
- No annual or monthly fee
- 700 minimum personal credit score