Startup business credit cards with no credit are very difficult to obtain. But, it is possible.
In this article, we’re going to share the different strategies for obtaining a business credit card with no credit history. We will also answer common questions we receive on the topic.
This article is part of our free series on credit cards in the United States, including how to get a US credit card with an ITIN number, which you can access here.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Startup Business Credit Cards With No Credit
- What Are the Benefits of Business Credit Cards?
- How to Apply for a Startup Business Credit Card With No Credit?
- Frequently Asked Questions
- Ready to Open Accounts With Banks in the USA?
Startup Business Credit Cards With No Credit
Startup business credit cards with no credit history are extremely difficult to obtain. However, it is possible for a business with no credit to obtain credit cards and business financing.
There are small business credit cards available for entities with limited credit. That said, these cards typically require the owner of the business to undergo a personal credit check. Of course, regardless of the credit history of a business, it is still possible that certain banks will want to check the owner’s credit history as well, especially in a startup business.
On the other hand, secured credit cards are a more accessible way to start building credit. By making a qualifying deposit, you can overcome issues with business creditworthiness and essentially give the lender a security deposit. In essence, it allows you to get a credit card with no credit check.
Alternatively, if you want to apply for a US credit card, specifically a guaranteed credit card with approval of no deposit, you can get started by accessing our free guide linked here.
That said, credit card eligibility (even for secured cards) will depend on each financial institution. However, in most cases, a willingness to make a large deposit and show traction in the business can go a long way at unlocking business funding options.
So, whether you are looking at establishing credit there are credit options for startups available.
What Are the Benefits of Business Credit Cards?
The benefits of business credit cards range from access to short-term capital for emergencies to an effective way to conduct online transactions. That said, businesses can also benefit from low (or no) foreign transaction fees, rewards programs, and easy budget and department expense management. Here is a closer look at the benefits of business credit cards.
Benefits of Business Credit Cards
- Access to short-term capital for emergencies
- An effective way to conduct online transactions
- Low foreign transaction fees
- Benefits and rewards for card use
- Easy bookkeeping and management
- Streamlined department spending monitoring
How to Apply for a Business Credit Card With No Credit?
To apply for a business credit card with no business credit history, you will likely need to make a security deposit with the bank and, as the shareholder, demonstrate personal creditworthiness instead.
That said, not all banks offer secured credit cards to businesses. And those that do, typically require a sizable security deposit in addition to demonstrating a long operating history and consistent revenue.
What are the Requirements to Obtain Corporate Credit Cards With No Credit?
Obtaining corporate credit cards for a business with no credit is very challenging and has requirements that are beyond normal corporate credit cards.
In most cases, it requires the business to demonstrate a certain operating history, revenue levels, and the ability to make a deposit and maintain an ongoing balance in the account.
Additionally, when a business does not have a credit history, it is also common for the bank or financial institution to conduct a credit check on the owner of the business as well.
Some financial institutions and credit card providers do perform hard inquiries and knowing how long hard inquiries stay on your credit report is important as too many can impact your credit report.
Do I Need to Open a Business Bank Account?
It is not legally required to open a business bank account. However, if you want to obtain a business credit card you will need to establish a relationship with a financial institution. And, in most cases, the first step in doing so will be opening a business bank account.
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Frequently Asked Questions
Below are four of the most common questions we receive from people looking into startup business credit cards with no credit. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
How Do I Get Business Credit If I Have None?
To get business credit, if you do not already have it, you will need to first have a strong relationship with your business banking partner. In most cases, banks that cater to businesses will automatically offer credit to a business after a certain period of time. On the other hand, if the business does not have credit and the business owner wants to access credit for the business, they can also apply using their own credit history.
Do Business Credit Cards Check Personal Credit?
Business credit cards check personal credit when the business does not have sufficient credit history to apply on their own. In most cases, businesses with insufficient credit history or early-stage businesses, like startups and other new ventures. Likewise, small businesses with limited credit history may also struggle to get a credit card on their own, requiring the personal credit history of the owner of the business to be checked.
Can You Get a Credit Card With No Established Credit?
Yes, you can get a credit card with no established credit. However, the options available are often very limited. In most cases, secured credit cards and credit-building credit cards are the only options available. That said, after responsibly using a secured credit card for a sufficient period of time, it is possible to obtain unsecured credit cards from most financial institutions and lenders.
Does a Startup Business Credit Card Check Personal Credit?
Yes, in most cases, if a startup business does not have a sufficient credit history, lenders will assess the personal credit history of the shareholder. This is because lenders rely on a credit assessment to determine if a business is suitable to borrow. If the business is unable to demonstrate this on its own, the bank has no choice but to look at the shareholders directly.
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