How to Get a Business Credit Card with No Personal Credit Check 

Business credit cards are a popular tool for all types of entrepreneurs. Credit cards give businesses access to funds to purchase what they need for their companies while building business credit history. Some credit cards even offer rewards, like cash back and travel discounts. However, for small business owners with bad personal credit scores, getting a business credit card can be challenging. In this article, we explore options for business credit cards that don’t require a personal credit check.

In this article:

• The basics of small business credit cards
• Best types of business credit cards with no personal credit check
• How to improve the approval odds of a business credit card application
• Alternative financing options for small business owners

The basics of small business credit cards

Small business credit cards are a type of revolving credit that work similar to a line of credit. When a borrower is approved for a business credit card, they are approved by the issuing bank or lender for a maximum credit limit. Cardholders use the card to make purchases or withdraw cash for any amount up to the assigned credit limit. Just like personal credit cards, small business cardholders receive a monthly statement which details account activity, available credit, interest charges, annual fee, and the required minimum payment due. Payment history and credit utilization are reported on business credit reports through credit bureaus, like Dun & Bradstreet.

Business credit cards don’t affect an entrepreneurs’ current loans, like home mortgages, or impact their personal credit score. In fact, business card activity won’t be reported by the three major consumer credit bureaus, including Equifax, TransUnion, and Experian. Since the credit is revolving, once a balance is paid down the borrower is free to use the card again. Borrowers must pay at least the minimum payment each month, but interest and financing costs are only calculated on the amount of funds used. There is no term with a small business credit card, as they remain open until the borrower cancels the card or defaults on the payment agreement. The credit limit can be increased or decreased at any time if both the issuing lender and the borrower agree.

Best types of business credit cards with no personal credit check

For business owners that are concerned about a low personal credit score, or those that don’t want to include their personal finances in their business plan, they may want to explore a business credit card that does not require a personal credit report.

• Corporate cards are a good option for incorporated small businesses or limited liability companies (LLCs) that have been in business for more than two years and have significant annual revenue. Corporate credit cards rely on business credit history, not personal credit, for approval.
• Secured credit cards work like any other credit card, except they require a deposit to open. Secured credit card issuers typically will do a hard inquiry credit check, but because of the deposit, good credit is not an eligibility requirement.
• Business debit cards aren’t a type of revolving credit, but they are linked to a business account at any financial institution. They are a great form of payment for business expenses, that don’t require a credit check.

If one of those types of credit cards seems like it would be a good fit, consider exploring one of these card companies:

1. Capital One Spark Cash – a great option for new business owners, perks include cash back on every purchase and no annual fee the first year.
2. American Express Business Gold – an attractive rewards program makes this card a great option for business owners that travel often or order inventory internationally, but a large annual fee discourages startup entrepreneurs or business with limited cash flow from applying.
3. Chase Ink Business Preferred Card – benefits include additional points for purchases made during the defined intro period and low interest rates on balance transfers.

How to improve the approval odds of a business credit card application

While not all credit card companies rely on credit reports, new business owners or those with less than perfect credit, can take some steps to improve the odds of getting approved for a business credit card.

• Check your business credit score – It takes some time in business to build credit history, but before applying for a commercial credit card, check your business’s credit score. Be sure to dispute any inaccurate information with the reporting credit bureau.
• Avoid late payments – Be sure to make on-time payments on all personal loans, credit cards, and business credit arrangements. Late payments create a derogatory mark on a business’s credit report that is difficult to remove.
• Offer a personal guarantee – Some business card issuers will approve a business credit line to startup business owners using a personal guarantee or promissory note instead of a credit check.

Alternative financing options for small business owners

While there are small business credit card providers that do not require a personal credit inquiry or or FICO score, some entrepreneurs prefer to limit their business credit card activity. Small business owners that do not want to accumulate credit card debt or have bad credit, can reach out to Biz2Credit to explore alternative small business financing options.

• Short-term business loan – Term loans are a traditional type of financing where the borrower receives a lump sum of money upfront and repays the loan with monthly payments of principal and interest.
• Business line of credit – A line of credit is another type of revolving credit where the borrower is approved for a maximum credit line. The borrower can then draw on the line anytime they need business funds.

Bottom Line

Small business credit cards work just like personal credit cards, but with no impact to your personal finances. They allow entrepreneurs to purchase what they need for their business, build better credit history, and keep business expenses separate from personal finances. While most credit card companies do check both business and personal credit, there are options, like corporate cards or secured credit cards, that don’t require a credit check.