Business owners with bad (or limited) credit can find it difficult to get approved for a traditional business credit card. But bad credit does not have to limit your business opportunities – a secured business credit card can be a great alternative.
All secured cards require a refundable deposit that will initially serve as a credit line until the bank has determined that you are eligible for an unsecured card. Most deposits will be returned to you following six months of on-time payments.
A secured business credit card is also a great way to separate your business expenses while improving your business credit score. In addition, responsible spending on your business credit card will improve your creditworthiness. This can make it easier to qualify for larger business loans and credit lines with more favorable terms in the future.
- 5% Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. Terms apply
- 1.5% Earn unlimited 1.5% cash back on every purchase, everywhere
The Capital One Quicksilver Secured Cash Rewards card is a great secured business card with a low security deposit — a minimum of just $200. In addition, cardmembers earn an unlimited 1.5% cash back on all purchases plus 5% back on hotels and car rentals booked through Capital One Travel. You can see if you’re preapproved for the card (with no risk to your credit score), and since the Quicksilver Secured Cash card is a secured credit card, you’re likely to be approved even with bad credit or limited credit history. Cardmembers will also automatically be considered for a higher credit line after six months of on-time payments. You can read the full review of the Capital One Quicksilver Secured Cash Rewards card for more information on this card.
The OpenSky Secured Visa Credit Card is a great option for business owners who have struggled to get approved for other secured credit cards. It’s a great option for those with financially limiting factors in their life, as it does not require a credit check or even a bank account. The card claims a high approval rate, and cardholders will automatically be considered for an increased credit line after six months. Unfortunately, the card does come with a $35 annual fee. You can read the full review of the OpenSky Secured Visa Credit Card for more information on this card.
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|Card||Best for||Welcome Offer/Sign Up Bonus||Earning Rate||Annual Fee|
|Capital One Quicksilver Secured Cash Rewards Credit Card||Best for earning rewards||N/A||
|OpenSky® Secured Visa® Credit Card||Best for business owners with poor credit history||N/A||N/A||$35|
Why get a secured business credit card?
Not every business owner is in a financial position to receive an unsecured business credit card or a large business loan. A secured credit card can help build responsible spending habits and increase credit standing.
Secured business credit cards should be treated with the same rules as personal credit cards. You can check out this guide for more tips on using your credit card.
With recurring “good standing” usage, business owners should see a significant increase in their credit score within a year of opening their credit cards. This increase can help business owners upgrade to unsecured business credit cards or qualify for a business loan with more favorable terms. This can include some of TPG’s favorite business cards with hefty welcome bonuses and an array of valuable perks.
How long does it take to build credit with a secured business card?
Using a secured credit business card effectively will help you build your business credit. Typically, this process can take up to a year as you transition to an unsecured business card. Having good business credit history will help your business qualify for better loans and credit lines.