5 Best Startup Business Credit Cards with No Credit
Hello Friends! Are you looking to start a business but don’t have any credit? You’re not alone. Many entrepreneurs face this challenge when starting out. The good news is that there are credit cards available specifically for startup businesses that don’t require a credit history.
1. Capital One Spark Classic for Business
The Capital One Spark Classic for Business is a great choice for startup businesses with no credit history. It comes with a fixed rate of 24.49% variable APR, which is high but expected for a card with no credit requirements. The card also comes with an annual fee of $0 and 1% cash back on all purchases.
One downside to the Capital One Spark Classic for Business is that it doesn’t come with any introductory offers or rewards bonuses. However, the lack of credit requirements makes it a great option for startup businesses looking to build their credit.
2. Discover it Secured
The Discover it Secured is a good option for startup businesses that want to build their credit while also earning rewards. The card requires a minimum security deposit of $200, but the deposit is refundable if the account is closed in good standing. The card also comes with a 22.99% variable APR and no annual fee.
The Discover it Secured offers 2% cash back on up to $1,000 in combined purchases at gas stations and restaurants each quarter, and 1% cash back on all other purchases. Discover also matches all cash back earned at the end of the first year, which can be a significant reward for startup businesses.
3. Wells Fargo Business Secured Credit Card
The Wells Fargo Business Secured Credit Card is another option for startup businesses with no credit history. The card requires a minimum security deposit of $500, but the deposit is refundable if the account is closed in good standing. The card also comes with a variable APR of 16.15%.
The Wells Fargo Business Secured Credit Card offers a rewards program that earns 1.5% cash back on all purchases. The card also offers overdraft protection for business checking accounts, which can be helpful for managing cash flow.
4. American Express Blue Business Cash Card
The American Express Blue Business Cash Card is a good option for startup businesses that want to earn cash back on their purchases. The card offers a 0% introductory APR on purchases for the first 12 months, followed by a variable APR of 13.24%-19.24%. There is no annual fee for the card.
The American Express Blue Business Cash Card offers 2% cash back on the first $50,000 in purchases each year and 1% cash back on all other purchases. The cash back earned on the card is automatically credited to the statement, which can help with cash flow management.
5. U.S. Bank Secured Visa Card
The U.S. Bank Secured Visa Card is a good option for startup businesses that want to build their credit. The card requires a minimum security deposit of $300, but the deposit is refundable if the account is closed in good standing. The card also comes with a 24.99% variable APR and an annual fee of $29.
The U.S. Bank Secured Visa Card offers free access to your credit score, which can be helpful for monitoring your credit history. The card also offers auto rental collision damage waiver and zero fraud liability, which can be helpful for protecting your business.
What You Need to Know Before Choosing a Business Credit Card for Your Startup
When choosing a business credit card for your startup, there are several factors to consider. Here are some things to keep in mind:
1. Credit Requirements
Many business credit cards require a certain credit score and history. If you’re just starting out, you may not have any credit history. Look for credit cards that don’t require a credit history or offer secured credit cards that require a deposit.
2. Rewards Program
Consider whether you want a credit card that offers rewards or cash back. Some rewards programs may be better suited for your business than others. For example, if you frequently travel for business, you may want a credit card that offers airline miles or hotel points.
3. Annual Fees
Many business credit cards come with annual fees. Consider whether the rewards or benefits outweigh the fees. Some credit cards offer waived annual fees for the first year, which can be a good option for startups.
Consider the annual percentage rate (APR) of the credit card. This will affect how much interest you will pay on any balances you carry over from month to month. Some credit cards offer 0% introductory APRs, which can be a good option for startups that need to make large purchases.
5. Additional Benefits
Some business credit cards offer additional benefits such as travel insurance, extended warranties, or purchase protection. Consider whether these benefits are important to your business.
Best Business Credit Cards for Startups 2021 | Finder UK
Finder UK has compiled a list of the best business credit cards for startups in 2021. Here are the top picks:
|American Express Business Platinum Card
|Brex 30 Card
|Cashplus Business Charge Card
|HSBC Business Credit Card
|Starling Bank Business Credit Card
Each of these credit cards offers unique benefits and rewards programs. Consider your business’s needs and goals when choosing a credit card.
Mary S. Anderson’s Blogs
Mary S. Anderson has written several blogs about business credit cards for startups. Here are some of her top tips:
1. Pay on Time
One of the most important things you can do to build your credit history is to pay your bills on time. Late payments can negatively impact your credit score and make it harder to get approved for credit in the future.
2. Keep Your Credit Utilization Low
Your credit utilization ratio is the amount of credit you are using compared to the amount of credit you have available. Keeping your credit utilization low can improve your credit score and make it easier to get approved for credit in the future.
3. Review Your Credit Report
Regularly reviewing your credit report can help you identify errors or fraudulent activity. You can request a free credit report from each of the three major credit bureaus once per year.
4. Use Credit Cards Responsibly
Using credit cards responsibly means paying your bills on time, keeping your balances low, and only using credit when necessary. It can take time to build a good credit history, but using credit cards responsibly can help.
5. Look for Introductory Offers
Many business credit cards offer introductory offers such as 0% APR on purchases or balance transfers for a certain period of time. These offers can be a good way to save money on interest charges, but make sure to read the fine print to understand the terms and conditions.
Choosing the right business credit card for your startup can help you build your credit history and earn rewards. Consider factors such as credit requirements, rewards programs, annual fees, APR, and additional benefits when choosing a credit card. Remember to use credit cards responsibly and pay your bills on time to build a good credit history.
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