Getting startup business credit cards with no credit history can be a challenge. However, it is possible with some strategic planning and knowledge of which cards may approve entrepreneurs just starting. This comprehensive guide will provide tips, strategies, and the best startup business credit cards to apply for in 2024 with no credit.
Why Startup Owners Need Business Credit Cards
There are several important reasons why startup owners should make getting a business credit card a top priority:
1. Separate Personal and Business Expenses
One of the top reasons to get a business credit card is to keep personal and business expenses separate. Mixing personal and business expenses on a card can create accounting and tax nightmares later. A business credit card helps track all business expenses in one place simplifying record keeping.
2. Build Business Credit
Having a credit card in your business name will help establish business credit profiles with the major business credit bureaus. This is essential for newer businesses that need to build business credit to get approved for financing and loans down the road.
3. Enjoy Business Credit Card Rewards
Many business credit cards come with nice rewards programs on categories frequently used by businesses. This includes bonus rewards on shipping, internet advertising, office supplies, gas, restaurants, and more. The rewards can help reduce business expenses.
4. Higher Credit Limits
Business credit cards often come with higher credit limits compared to personal cards. This gives startup owners more purchasing power and flexibility in managing business expenses and growth.
5. Free Employee Cards
Some business credit cards allow you to get free employee cards with preset spending limits. This can help control employee spending on business trips, meals, and expenses.
Startup Business Credit Cards to Get with No Credit
The good news is that there are several great business credit card options available that are receptive to applicants just starting with no credit history yet established. Here are some of the best cards to consider:
Wells Fargo Business Secured Credit Card
The Wells Fargo Credit Card Business Secured card is a great option to establish a credit line for your business. With this card, you deposit funds upfront as a security deposit and get a matching credit limit. If approved, you can get a credit line from $500 up to $25,000. The card has no annual fee and you can qualify without any credit history. After making on-time payments for 12 months, you may become eligible for an upgrade to an unsecured card and get your security deposit back. This is a great way to establish business credit.
Capital One Spark Cash for Business
The Capital One Spark Cash for Business card offers 2% cash back on all purchases which can add up quickly. New business owners can take advantage of no preset spending limit and the ability to apply without an existing business credit score. Capital One approves applicants based on personal creditworthiness. There is no annual fee for this card making it very affordable. With responsible use, it can help build your business credit profile for the future.
Business Platinum Card from American Express
The Business Platinum Card from American Express is another solid choice for startup owners aspiring for this premium card. Like Capital One, American Express issues this card based on your credit score, so no existing business credit is needed. New cardholders can earn 100,000 membership reward points if they spend $15,000 on qualifying purchases within the first 3 months. It does have a high annual fee of $695 but comes with enough perks and rewards to offset the cost. This card signals your business has arrived and offers some nice travel benefits.
Bank of America Business Advantage Cash Rewards Mastercard
With the Bank of America Business Advantage Cash Rewards card you can earn 3% cash back on one category of your choice, 2% back on dining, and 1% on all other purchases. New cardholders can get $300 back after making $3,000 in purchases during the first 90 days. While this card does require an established business credit history, Bank of America may issue it based on your credit score alone. There is no annual fee. Responsible use can help build your business credit.
Chase Ink Business Cash Credit Card
The Chase Ink Business Cash Credit Card is a flexible option with no annual fee. It offers 5% cash back on the first $25,000 spent at office supply stores and on internet, cable, and phone services each account anniversary year. All other purchases earn unlimited 1% cash back. Spending just $3,000 in the first 3 months from account opening can earn you $750 bonus cash back. Chase may approve this card based on your credit score so it’s worth an application.
Also Read: The Ultimate Guide To Secured Business Credit Cards
Tips for Getting Approved for Startup Business Credit Cards with No Credit with No Credit
If you’re just starting, here are some important tips that can help with getting approved for a business credit card:
- Apply for credit builder business credit cards – Issuers like Wells Fargo and other banks understand new businesses need to establish credit. Their secured credit cards make it easier to qualify and build credit.
- Check your credit scores – Even when applying for business credit cards, lenders may base approval on your creditworthiness, so know your scores.
- Consider becoming an authorized user on another business credit card – Ask a business partner or family member with an existing card to make you an authorized user. This can help establish a history.
- Prepare to provide personal information – When applying with no business credit file yet, issuers will look at your finances, so have tax returns, bank statements, etc ready.
- Apply for low-limit cards first – Consider asking for a lower credit limit first and then request higher limits later once you’ve built up your business credit profile.
- Use the card responsibly – Make sure to make on-time payments and keep utilization low. Missed payments or high balances can hurt approval chances on your next cards.
Long-Term Benefits of Getting a Business Credit Card Early
Getting a credit card in your business’s name, even if your credit must back it up at first, can provide long-term benefits:
- A separate credit profile under your business’s name will be established
- Your business credit scores will improve with responsible use
- Higher limits and better terms can be unlocked down the road
- You’ll have an easier time qualifying for loans/financing later
- Your business will appear more credible to vendors, lenders, and partners
Establishing business credit should be a top priority for any new startup owner. While it may require using your credit at first, with some discipline, you can build business credit to give your company staying power for the long term.
Also Read: PayPal Business Loans – Fast Financing for Your Business
Final Thoughts on the Best Business Credit Cards for Startups
As you can see, there are definite options when it comes to getting a business credit card for your startup even with no existing credit history. A secured card like the Wells Fargo Business Secured Credit Card is a good bet. But you may also be able to qualify for great rewards cards like the Capital One Spark Cash, the Business Platinum Card from American Express, or the Chase Ink Business Cash card.
The key is focusing on cards that align with your spending needs, have low or no annual fees, and offer the ability to build business credit. Building business credit early in your company’s life cycle sets you up for success when financing and credit needs arise down the road.
With a combination of Startup Business Credit Cards with No Credit and responsible use, your startup can establish its credibility and separate business finances from personal. Have a strategic plan, and check out the cards mentioned in this guide to find the right fit for your new business. Here’s to your success and growth in 2024!
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