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Getting a Business Credit Card with Bad Credit in 2023

What is Bad Credit?

Bad credit is an umbrella term used to describe an individual’s or business’s credit score. A low credit score is usually defined as any score below 690. Low credit scores often indicate to lenders that a business or individual is a risk, and may be less likely to pay back the loan or credit card.

Options for Businesses with Bad Credit

Getting a business credit card with bad credit is possible. Businesses that have bad credit can still find options for credit cards, but it may come with higher fees and interest rates.

Secured Credit Cards

One option for businesses with bad credit is to get a secured credit card. A secured credit card requires a deposit, which acts as a collateral and is held in case the business defaults on the loan. The deposit amount is equal to the credit limit, so if the business deposits $500, they will have a credit limit of $500.

Business Credit Builder Card

Business owners with bad credit can also look into getting a business credit builder card. This type of card is designed to help businesses build up their credit score. It works like a secured credit card, but with a few key differences. Instead of having to make a deposit upfront, the business will receive a line of credit. As the business pays the card off each month, their credit score will increase.

Alternative Lenders

Businesses with bad credit should also consider alternative lenders. These lenders specialize in providing financing to businesses with bad credit. They may offer more flexible terms and interest rates than traditional lenders.

Tips for Getting a Business Credit Card with Bad Credit

Businesses with bad credit should do the following when trying to get a business credit card:

Know your credit score
Find the right card for your needs
Look for low interest rates and fees
Pay your bills on time
Monitor your credit score
Keep your credit utilization low

Conclusion

Getting a business credit card with bad credit is possible. Businesses should look into secured credit cards, business credit builder cards, and alternative lenders when looking for a card. It’s also important to monitor your credit score and keep your credit utilization low to ensure that you are able to get the best terms and rates for your credit card.