Published By Janet Gershen-Siegel at December 21st, 2020
Due to the pandemic, an economic downturn is likely inevitable. But it is still possible to get business credit cards for bad credit in a recession.
Do you know how to get business credit cards for bad credit in a recession? According to the SBA, small business credit card limits are 10 – 100 times those of personal cards! So this means you can get a lot more money with business credit. And it also means you can have personal credit cards at shops.
You’d now have an additional card at the same retail stores for your business. And you won’t need collateral, cash flow, or financial information to get small business credit.
Benefits can vary. So, make certain to pick the benefit you would prefer from this choice of alternatives. Since some of these cards require decent or even particularly good credit, now is the perfect time to improve your credit.
So look into the Brex Card for Startups. It has no yearly fee.
You will not need to provide your Social Security number to apply. And you will not need to supply a personal guarantee. They will take your EIN.
However, they do not accept every industry.
Also, there are some industries they will not work with, and others where they want more paperwork. So for a list, go here: https://brex.com/legal/prohibited_activities/.
To determine creditworthiness, Brex checks a corporation’s cash balance, spending patterns, and investors.
So you can get 7x points on rideshare. Get 4x on Brex Travel. Also, get triple points on restaurants. And get double points on recurring software payments. Get 1x points on everything else.
So you can have poor credit scores (even a 300 FICO) to qualify.
Find it here: https://brex.com/lp/startups-higher-limits/
Take a look at the Capital One® Spark® Classic for Business. So it has no annual fee. There is no introductory APR offer. So the regular APR is a variable 24.49%. You can get unlimited 1% cash back on every purchase for your company, with no minimum to redeem.
While this card is within reach if you have fair credit scores, beware of the APR. Yet if you can pay in a timely manner, and in full, then it’s a good deal.
Have a look at the Blue Business® Plus Credit Card from American Express. So it has no yearly fee. There is a 0% introductory APR for the initial one year. Afterwards, the APR is a variable 14.74 – 20.74%.
Get double Membership Rewards® points on day to day business purchases like office supplies or client suppers for the initial $50,000 spent annually. Get 1 point per dollar afterwards.
So you will need great to excellent credit to qualify.
Check out the Plum Card® from American Express. It has an initial annual fee of $0 for the first year. After that, pay $250 per year.
Get a 1.5% early pay discount cash back bonus when you pay within 10 days. You can take up to 60 days to pay without interest when you pay the minimum due by the payment due date.
So you will need good to superb credit to qualify.
Capital One® Spark® Cash Select for Business
Take a look at the Capital One® Spark® Cash Select for Business. It has no yearly fee. You can get 1.5% cash back on every purchase. There is no limit on the cash back you can earn. Also get a one-time $200 cash bonus when you spend $3,000 on purchases in the initial 3 months. So rewards never expire.
Pay a 0% introductory APR for 9 months. Then pay 14.49% – 22.49% variable APR after that.
You will need good to outstanding credit to qualify.
Take a look at the Discover it® Business Card. It has no yearly fee. There is an introductory APR of 0% on purchases for one year. Then the regular APR is a variable 14.49 – 22.49%.
Get unlimited 1.5% cash back on all purchases, with no category restrictions or bonuses. They double the 1.5% Cashback Match™ at the end of the first year. So there is no minimal spend requirement.
You can download transactions| conveniently to Quicken, QuickBooks, and Excel. Keep in mind: you will need great to excellent credit scores to get approval for this card.
Have a look at the Capital One® Spark® Miles for Business. It has an introductory annual fee of $0 for the first year, which then rises to $95. The regular APR is 18.49%, variable due to the prime rate. There is no introductory annual percentage rate. Pay no transfer fees. So late fees go up to $39.
This card is wonderful for travel if your expenses do not fall under basic bonus categories. You can get unlimited double miles on all purchases, without any limits. Get quintuple miles on rental cars and hotels if you book with Capital One Travel.
Get an initial bonus of 50,000 miles. That’s the same as $500 in travel. However you just get it if you spend $4,500 in the initial 3 months from account opening. There is no foreign transaction fee. You will need a good to excellent FICO score to qualify.
For an excellent sign-up offer and bonus categories, have a look at the Ink Business Preferred℠ Credit Card.
Pay an annual fee of $95. Regular APR is 17.49 – 22.49%, variable. So there is no introductory APR offer.
Get 100,000 bonus points after spending $15,000 in the first three months after account opening. This works out to $1,250 towards travel rewards if you redeem using Chase Ultimate Rewards.
Get three points per dollar of the first $150,000 you spend with this card. So this is for purchases on travel, shipping, internet, cable, and phone services. Plus it includes advertising purchases made with social media sites and search engines each account anniversary year.
You can get 25% more in travel redemption when you redeem for travel through Chase Ultimate Rewards. You will need a great to excellent FICO score to qualify.
Your absolute best way to apply for business credit cards for bad credit in a recession will hinge on your credit history and scores.
Only you can select which features you want and need. So make sure to do your homework. What is excellent for you could be catastrophic for others.
And, as always, make sure to develop credit in the recommended order for the best, speediest benefits. The current situation will not last forever.