Credit Cards For Small Business Owners With Bad Credit

Posted in Finance, Tips

With regulations being tighter than in past years and credit card issuers being more selective with their customers, getting a credit card isn’t as easy as it once was. This is especially true for those with bad credit, as the options are very limited for such individuals. Does this mean that you are out of luck if you need a credit card for your small business? No, it does not.

There are still options available to people with bad credit. Let’s take a look at a few of those.

Secured Credit Cards

A typical credit card does not require a deposit on your part. This is because the issuer has checked your credit report and decided that you are not a risky customer. However, if you have bad credit, most credit cards will be off limits to you.

This is where a secured card comes in. A secured credit card is a card that requires a down payment. Essentially, the issuer wants some of your money on hand in case things go downhill and you cannot pay your bill.

With a secured credit card, your credit limit will probably be much lower than those found on other cards. However, it is better than nothing and you’ll be able to get at least some of the financing that you need via such a card.

Retail Cards

“Would you like to sign up for a XYZ credit card? You’ll save 10 percent on your purchase today.”

How many times have you heard a similar line from a cashier? Next time you do, consider actually signing up for 1 instead of giving a frown and declining the card. Such cards are typically easier to obtain than standard credit cards.

Retail cards typically come with high interest rates and low credit limits. However, when used responsibly, they’ll help you build good credit. They typically can be used anywhere, although you’ll probably only earn rewards with the relevant retailer.

Gas Cards

Gas cards are also relatively easy to obtain. In fact, you may be approved on the spot if you apply in person. Note that you’ll have the best chance with a station-specific card, not an all-purpose gas card.

The rewards are quite paltry on such cards, but they are typically issued with the logos of major payment processors on them (Visa, etc.), meaning that you can use them anywhere. If you run a small business, it is probably better to just go with a personal gas card than a fleet card, as some fleet cards carry extra fees if minimum consumption thresholds are not met. Also, fleet cards generally designed just as they sound – for fleets, meaning that they probably won’t fit well unless you own a vehicle-intensive business.

Conclusion

The credit scoring system doesn’t always seem fair, but it is a reality that you’ll have to deal with if you need financing for your business. A secured card, retail card or gas card can give you some of the financing that you need while helping you build credit. This way, you won’t have to have such limited options in the future.


Top of page