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When you plan to start a new business, you need more than just a unique idea. While the concept can be a kickstart, you need capital to turn it into a reality. Speaking of capital, the first thing that pops into anyone’s mind is a business loan! Now, while it can be a simple process for established businesses, startups will face many challenges in getting approvals. That is where the startup business credit cards with no credit come to your rescue.
In this article, we will discuss everything you need to know about startup business credit cards with no credit check. You will learn how to qualify for it and how these cards can help you establish a business without financial stress.
What Are Startup Business Credit Cards with No Credit?
As the name suggests, startup business credit cards with no credit are for individuals who have just entered the business world and lack a promising credit history. Using this card, you can manage the initial capital required to run the business, and fair usage will also ensure building an excellent credit score.
Unlike traditional credit cards, this category offers alternative qualifying criteria, like consideration of your personal credit, cash deposits, or an assurance of steady business revenue. For instance, the Nav Prime Card is a no-credit-check option for startup businesses.
Most of the cards in this category are secured credit cards. You need to deposit a refundable deposit to establish a credit limit, and you are free to use the funds. However, some credit issuers also allow personal guarantees, in which they consider the personal credit of the guarantor to secure card approval.
Best Startup Business Credit Cards with No Credit
Here are some top-rated options to consider:
1. Bank of America Business Advantage Unlimited Cash Rewards Mastercard Secured
Rewards: Earn 1.5% cash back on all purchases without a cap
Why It’s Great
Ideal for building credit while benefiting from cashback rewards
Key Benefits:
Your credit limit is based on your refundable security deposit (minimum $1,000). Over time, you may qualify for an unsecured card upon review.
Annual Fee:
No annual fee
2. First National Bank Business Edition Secured Mastercard
Rewards: No specific rewards program, but excellent for credit building
Why It’s Great
Suitable for serious entrepreneurs ready to invest in their credit building
Key Benefits:
Reports payments to Dun & Bradstreet, helping you build a robust business credit profile. Requires a refundable security deposit between $2,000 and $10,000.
Annual Fee:
$39
3. Hello Alice Small Business Mastercard
Rewards: $50 statement credit when spending requirements are met
Why It’s Great
A beginner-friendly option with minimal barriers to entry and essential tools for financial management.
Key Benefits:
Flexible deposit starting at $500, no annual fee, and versatile redemption options like cashback.
Annual Fee:
No annual fee
4. Capital One Spark Classic for Business
Rewards: Earn 1% cash back on all purchases
Why It’s Great
An unsecured card offering a manageable entry point for startups to grow financially while earning rewards.
Key Benefits:
No security deposit required and accessible for those with fair personal credit.
Annual Fee:
No annual fee
Benefits of Startup Business Credit Cards with No Credit
The startup business credit cards with no credit check are beneficial to new business owners in multiple ways. Here is a list of benefits you can expect to enjoy after securing a credit card with no credit for yourself.
Initial Capital
The primary advantage of these credit cards is the access to initial capital. You can use them to manage your day-to-day expenses, such as utility bills, stationery costs, inventory purchases, and more.
Credit Building
If you continue using the card responsibly, it will help build an impressive credit score for your business. It means you will soon be entitled to get business loans or business credit cards with significantly higher credit limits.
Additional Rewards
Almost every credit card offers additional perks or access to rewards programs that often provide additional discounts on purchases. You can get travel rewards for discounted travel, lounge access, and much more, helping you save a lot of money!
Expense Tracking
There are tools and special features attached to these cards that let you keep an eye on your business expenses. Moreover, you can also share these with the team members and keep track of all their spending. The best part is that you can set the credit limit for these cards, deciding how much the staff should spend on official expenses.
Financial Management
Having a business credit card means you can clearly separate out your personal and professional expenses. This way, financial management gets smoother, simplifying your bookkeeping and tax preparation.
How to Qualify for Startup Business Credit Cards with No Credit?
Although startup business credit cards with no personal credit check are easily accessible, there is still some eligibility that you should fulfill to get them.
- The secured business credit cards often require a security deposit that serves as collateral. Your card’s credit limit matches the deposit amount, so the first eligibility will be your ability to make a deposit.
- In some cases, your card provider will check your personal credit history before issuing a startup business credit card. So, make sure your personal score is good and you have an impressive credit history to be able to get the card issued.
- Look for cards that are specifically made for startup businesses. These cards have lenient qualification terms and offer multiple alternatives for you to get approval. So, it is always advisable to narrow your research in this particular category, and it will give you a good start.
It is significant to note that qualification terms vary for different card providers. So, you should discuss the same with your financial institute to get a clear idea.
Top Considerations When Choosing a Startup Business Credit Card
New businesses keep opening every day. Due to this, the number of people seeking startup business credit cards with no credit check is also increasing. To meet this demand, many financial institutes have offered an option in the startup business credit card category. If you also feel overwhelmed with the choices, here are the considerations that can help you in decision-making.
Fee & Interest Rates
Check the card fee and the interest rates of your preferred option and narrow that list. You should choose the card with the least interest rate, in the beginning, to keep the liabilities minimum in case of non-payment.
Credit Building
Always choose a card that offers excellent credit-building opportunities. Understand that you have to ultimately move ahead and turn into an established business that might require a card with a higher limit. So, your current card should definitely be a kickstart towards it.
Qualifying Criteria
Verify what you need to fulfill to get the card approved. Some require a cash deposit, while others may check your personal credit score. Make sure to verify the requirements before applying.
Additional Perks
Choose the startup business cards that offer additional perks that align with your business requirements. For example, if your work involves frequent travel, getting a card that offers miles or travel perks would be the best!
Conclusion
Starting your own business is a big move in which capital plays a crucial role in ensuring your idea successfully turns into a reality. To keep your journey smooth, securing a start business credit card with no credit is essential.
These cards let you manage the day-to-day expenses well and help establish promising business credibility. Once you have proved your credibility with fair usage over a period of time, you will be entitled to get business credit cards with higher limits and more favorable rewards.
There are multiple business credit card options in the market, but not every option is equal. So, it is vital to do your research and find a card that aligns with your business goals and helps you inch closer to your expected business success.
Start small with secured credit card options, manage your credit wisely, and never let capital come in the way of your business success.
