If you don’t have excellent credit, you may be worried you can’t get a business credit card. But fair credit doesn’t have to stop you from getting a business credit card that works for your business needs.
Fortunately, some commercial lenders offer business credit cards tailored specifically to business owners who are working on building or rebuilding their personal and business credit histories.
Here we’ll share top credit card options for small business credit cards for fair credit.
What Does “Fair” Credit Mean?
Most business credit card issuers will check personal credit scores when qualifying cardholders. Fair credit is defined as having a personal FICO score in the fair range—usually between 580 and 669. (Of course, each issuer can set its own standards for creditworthiness.)
If you have fair credit, you either have some established credit history, but have had some problem with making payments on-time,or perhaps a collection account appears on your report. It’s also possible you have high credit card balances that are bringing down our scores.
Or you may have fair credit simply because you have a limited credit history with few accounts reporting payment information.
Note that this is different from your business credit scores. Most business credit card issuers check personal credit, not business credit.
Nav’s Top Business Credit Card Picks for Businesses With Fair Credit
- Capital One Spark Classic for Business: Best for building personal credit
- FNBO Business Edition® Secured Visa® Card: Best for very high credit limits
- BILL Divvy Corporate Card
- The Nav Prime Card*
1.
The can be an excellent option for business owners with fair credit. This is a cash back rewards card that gives . That’s not as rich as some other offers, but it is competitive for fair credit. The annual fee is and the foreign transaction fee is .
3. FNBO Business Edition® Secured Visa® Card
If you have fair credit, this secured credit card offers small business owners the chance to enjoy an exceptionally large line of credit to pay your business expenses. You can request your own credit limit between $2,000 and $100,000 but you must place a security deposit equal to 110% of the amount of your credit limit. This card has a $39 annual fee.
*All information about the FNBO Business Edition® Secured Visa® Card has been collected independently by Nav. This card is not currently available through Nav. To see what business credit cards are available, please visit the Nav Credit Card Marketplace.
3.
The features expense and budget management tools to help businesses stay on track financially. There is a soft pull credit check that won’t impact your credit scores. This corporate card is available to sole proprietors as well as businesses operating under other structures such as a corporation or LLC.
You can earn rewards: . .
The offers several paths to approval, including at least two years in business, OR at least $50,000 in a business bank account, OR $500,000 or more in annual revenue, OR a credit score of at least 680.
4. Nav Prime Card
The Nav Prime Card* is a charge card, and no credit check or security deposit required. With your Nav Prime Card* transactions are reported as a monthly tradeline, which means everyday transactions can build business credit with regular use. Daily autopay from your linked checking account helps you avoid carrying high debt.
Exclusive to Nav Prime members, the Nav Prime Card reports as a second tradeline to help improve your business’s financial health profile to unlock better financing options.
The Nav Prime Card is not available in CA, NV, ND, SD.
What Credit Score Do You Need to Get a Fair Credit Business Credit Card?
Most business credit card issuers will pull a personal credit score when evaluating applications. Most do not check business credit scores, though there are some corporate credit cards that do.
Just as with personal credit cards, you can get a secured business credit card with fair or even poor credit. However, there’s often a minimum credit score required and card issuers will look at other personal finance factors beyond your credit score and your credit report from consumer credit bureaus.
Most small business credit card issuers require good or excellent personal credit, which means credit scores of at least 680 or higher.
Can You Get A Business Credit Card With No Credit Check?
There are some business credit cards, like Expensify, Ramp, or Brex that don’t require a personal guarantee or a personal credit check. Cards like that typically fall into the “corporate card” category, and will generally require that the business operate as an LLC or corporation (not a sole proprietorship) and meet minimum revenue requirements.
One exception is the Nav Prime Card*, which does not require a personal credit check and is available to sole proprietors as well as business entities like LLCs or corporations.
But you can expect a credit check for most small business cards from companies like American Express, Bank of America, Chase, PNC, Wells Fargo, etc.. Those cards may come with sign-up bonuses, intro APR offers and a variety of perks and rewards.
Ways to Improve Your Fair Credit Score
The steps you need to take to improve your credit scores will depend on the information in your reports. Check your personal and business credit, and pay close attention to the top factors affecting your scores.
The top factors that go into personal credit scores are:
- Payment history
- Debt
- Age of credit history
- Credit mix
- New credit
If debt is bringing down your scores, you may be able to improve your scores by improving your debt utilization.
If the problem is past late payments, you may need to add new credit references and make sure you pay all accounts on time going forward.
The two best ways to build good credit is to make your payments on-time and to keep credit card balances low. It’s fine to have multiple open accounts in good standing, so long as you follow those two rules. It also makes sense to monitor your credit reports, to ensure that there’s no fraudulent or inaccurate information.
Should Small Businesses With Fair Credit Consider a Business Card?
Yes, it’s a good idea to get and use a business credit card for business expenses. Here are the three main reasons to do so:
- Separate business and personal finances. Mixing personal and business spending on one credit card (or bank account) can create headaches at tax time. Using a separate card for business purchases will make accounting easier. Many cards will integrate with accounting software like Quickbooks, to make bookkeeping easier.
- Get better fraud liability. Credit cardholders get the highest level of fraud protection of any payment method, as well as the ability to dispute purchases if the goods or services aren’t delivered as agreed.
- Improve cash flow. Business credit cards often offer an underlying line of credit that can be used to finance purchases over time. Even if you pay in full, you may have a full billing cycle or more to pay for purchases, depending on the timing.
- Build business credit. If your card activity is reported to business credit agencies you can build business credit.
You may wonder why rewards are missing from this list. Reward points and cash back earned on eligible purchases can be very valuable, but cards for fair credit and bad credit may not offer generous rewards (or any at all). You may need good to excellent credit to qualify for cards with significant bonus points, welcome offers, etc.
How to Pick the Best Credit Card for Your Business
No business credit card is perfect, and if you only have fair credit, your options will be more limited. As you search for the best business credit cards for your business needs, the most important factor will be whether or not you can get approved.
Rewards programs and other perks aren’t as common on cards in this credit range, but you can still enjoy the other benefits we’ve outlined including fraud protection and the ability to build business credit.
Can You Get a Business Credit Card with Bad Credit?
Yes, it is possible to get a business credit card if you have bad credit. However, your options will be more limited, including secured credit cards, which require a security deposit equal to your credit limit, or a business charge card that doesn’t require a credit check. Use these cards to build your business credit history to give you more options later on when you’re ready to expand your business.
The Bottom Line
If you have fair credit, you are probably not that far from excellent credit. Get and use a small business credit card for fair credit while you work on building stronger personal and business credit.
Once your personal credit is in the good or excellent range, compare your card with other top business credit cards to make sure you’re still getting the most bang for your buck. If not, you can always apply for a new one that better fits your business.
Pro Tip From Our Expert
Even if you have fair credit, using a business credit card or charge card offers numerous benefits. Business credit cards are the safest way to pay for purchases, help you keep track of business expenses, and can help you build business credit.
FAQs
Do they run your personal credit for a business credit card?
Yes, most small business credit card issuers will require a Social Security number when you apply, and will check personal credit. (An issuer may require a SSN to verify your identity, but small business cards that don’t check credit aren’t as common as those that do .
What business credit card can I get with a 600 credit score?
Yes, this is considered to be fair credit, and there are several cards that are designed for applicants with this credit profile. Options are listed above.
Can I get a business credit card with a 670 credit score?
Yes, this is often considered to be good credit (or close to it), and there are cards available to applicants with this credit profile. Nav can help you find credit card options based on your profile.
What credit score do you need to start a business?
You don’t need any particular credit score to start a business, but good or excellent credit will help you qualify for more funding options. In general, qualifying for startup small business loans and financing can be challenging, and many business owners turn to 0% APR credit cards, crowdfunding, microloans or other types of funding for a new business.
Do LLCs get credit scores?
Yes, an LLC can have its own business credit scores. Establishing business credit requires accounts that report to business credit, and a business credit that reports can be helpful for building credit. Of course, it’s essential to pay on time and keep debt levels low.
What is the easiest business credit card to get?
The easiest business credit card to get depends on your specific situation, like your personal credit scores and your time in business. There are a few cards, including options listed above, that don’t require a credit check, and there are others that accept applicants with lower credit scores. With these cards, you can often lower your risk by putting down a deposit that acts as your credit limit.
What business credit cards offer guaranteed approval with fair credit?
There is never a guarantee that you’ll be approved. However, there are credit cards, like Self: The responsible way to build credit and BILL Divvy Corporate Card that operate more like charge cards. These cards are less risky because the borrower provides a deposit that acts as their credit limit, so they may be easier to qualify for.
Can I get a Chase business credit card with fair credit?
You’ll generally need a good personal credit score to qualify for Chase Ink business credit cards and other business cards from Chase.
Disclaimer: Nav Technologies, Inc. is a financial technology company and not a bank. Banking services provided by Thread Bank, Member FDIC. The Nav Visa® Business Debit Card and the Nav Prime Charge Card are issued by Thread Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa cards are accepted. See Cardholder Terms for additional details. FDIC insurance is available for funds on deposit through Thread Bank, Member FDIC. All other features of the Nav Prime membership are not associated with Thread Bank.