Best Secured Credit Cards for Business
Eligible business structures may include:
If you are a sole proprietor or regular consumer, you cannot obtain a corporate card. Some corporate cards may also have quite high annual minimum earnings.
Secured Consumer Credit Cards
If your business does not qualify for a corporate card, the next best alternative is a secure consumer card. We put several on our list for this reason. Secured cards are the best credit cards for bad credit.
Consumer secured credit cards have similar requirements to business secured credit cards. You will need to make a deposit to open and maintain the account. Consumer cards generally have lower minimum and maximum deposit limits than business cards. It also means that you will have less available credit to use.
Responsible use of your secured card over time can build or rebuild your credit. The most important step is to make all your payments on time each month. You should also aim to maintain a low utilization rate (how much of your available credit you are using).
READ MORE: What is a credit utilization ratio?
Depending on your situation, you may qualify for a business loan. Many business credit cards will check your personal credit. With some business loans, your business credit may be higher.
Since sole proprietors generally do not have separate business credit, lenders will likely check their personal credit. However, if you have an LLC or corporation and strong business credit, you may qualify.
If all else fails, you can try taking out a personal loan to cover major business expenses. There are all kinds of personal loans and lenders.
A standard personal loan will come in amounts ranging from $500 to $10,000 or more. The amount you can get will likely depend on your personal credit history. Your credit will also be factored into the interest rate you receive. Loans for bad credit tend to have high interest rates.
READ MORE: Best personal loans for bad credit
If you qualify for a personal loan, you can often receive funds within days. You will receive a lump sum deposited in your bank account which you can use for whatever you need. Personal loans are repaid in fixed monthly installments. The amount of your payments and the length of your loan terms will be determined during the application process.
Credit enhancement loans are a good option for anyone whose primary goal is to improve their credit rating. These loans are not ideal for obtaining the necessary funds to make purchases.
READ MORE: What is a credit loan and how do I get one?