How to Apply for a Small Business Credit Card with Bad Credit?

A business credit card is a necessity for every small business nowadays. As a legitimate functioning business, having a credit card helps simplify your bookkeeping, delegate your purchases and if used correctly can even help boost your business credit profile.

Major Source Of Financing

Credit cards are a major source of financing for small and medium business owners. If statistics are to be believed, more than 65% of small businesses make use of credit cards on a regular basis. 

One can be a sole proprietor, a corporation or even a small business, getting a credit card can prove to be a handy tool in the daily functioning of your business.

It’s no hidden fact that anybody can make use of a credit card for themselves but what if you have a history of bad credit?

What if you have had more cases of a bad credit score than any living person on the face of the planet? Now that could be a serious problem for your business to procure a credit card now, don’t you think?

no reason to be disheartened

That being said, you have no reason to be disheartened even if you have had a bad credit situation because believe it or not, there are credit card companies that still offer you a credit card no matter your previous stints and records of bad credit.

According to a report by the New York Federal Reserve Board, the use of credit card among individuals with less-than-stellar credit is at a high and the figures are on a rise with each passing day.

This article will tell you how you can apply for a credit card without worrying about your credit history.

• Knowing your credit score

The very first step in getting a business credit card involves knowing one’s credit score. The credit card issuer takes a steady note of your credit score in the application before approving things.

If you have a good track record and excellent credit, your application is bound to get processed easily.

If your score is really low then the best bet is to put this off and start rectifying the errors on your credit report.

You can get your finances back on track by making timely payments, keeping balances on par in your existing cards and avoiding new debt of any kind.

You can even keep track of your credit scores which is available on many leading websites. If you are still facing a problem then you might want to consider a credit repair company to help you out with your endeavor.

• Looking out for a card that suits your needs

The problem with having a bad credit is the fact that you are not bound to get lucrative perks or a high credit limit on your card.

The fact that every credit card application that you apply for reflects on your credit card report so you might want to tread in good waters before you choose a credit card company and weigh out your options.

There are many credit card finder tools out there to help you choose the best credit cards out there.

If you still remain hesitant then, asking your card issuer about the specifics can help you understand better about your choices.

• Careful comparison and analysis

Once you have narrowed down your choices regarding your cards, the next step involves comparing the basics of the card like making sure if the interests are at par with your current financial situation, the general terms and conditions and the reward points and benefits pertaining to your card.

If you are somebody with a bad credit rap sheet, then this becomes fairly important to assess. This includes the following points like:

i. Cost, fees, and the available credit on your card

ii. Going for a low limit card since such cards increase your chances of getting a credit card while having a low credit score

iii. Evaluating if the interests chargeable on the cards are payable for you in the long run.

iv. Offers and award system on your cards

v. General terms and conditions like late payment fees, annual percentage rate (APR), terms on personal and business credit separation.

• Rebuilding your credit

The way you use your credit cards can have a significant impact on your credit scores. If you have had previous defaults on your credit cards then contacting your creditors and negotiating the missed payments by working out payment plans and options can help.

The next best option is to not miss out on your bills and payments ever again. Make timely payments and avoid late payments.

Doing this will help improve your credit scores in the long run. Your credit card scores are based on five very important things which have been listed down below:

i. Payment history which accounts for almost 35% of the total score.

ii. The amount owed accounts for almost 30% debt you are carrying

iii. Credit history consists of 15% of the credit score and measures the time since you have had credit.

iv. Types of credit accounts which is roughly 10% of your credit score

v. Searches for new credit accounts for 10% of the score and shows the number of times you have been sought credit in the past.


With a growing number of businesses now seeking business credit cards, there has been a significant increase in the number of credit card issuers who are offering customized plans as per customer’s needs.

While the market may have partly adapted to the needs of consumers, it doesn’t imply that they have foregone the essence of credit lending.

Therefore it is essential to assess your credit situation and making smart choices before you indulge yourself in choosing your next card.

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