For every business startup, there is always necessary steps that you need to take to establish your business finances to fund your business. But likely, as a new business owner, you may not know where to get your funding from. For your luck, you are able to explore a variety of business credits card for startup businesses with no credit. These credit card options will not only provide you with the funds you need, but it will also benefit your startup business in other ways.
Since your startup business has no credit history, you are able to qualify for business credit cards by relying on your personal credit history. Business credit cards for startup business with no credit history have an easy process. What is the best credit card option for your startup business? We at founderactivity put this guide together to help you find out.
What Are Startup Business Credit Cards With No Credit
Starting your business with a credit card can be one of the best methods available. Since most startup business do not have collateral to offer for a loan. That is why a good credit card will help you fund your startup business with a proper cash flow.
BENEFITS
- Credit cards help you build the credit ratings to make it easy for you to be able to access future loans and other financial offers.
- Business accounts offer better interest rates than personal accounts. This can include regular purchases and cash advances.
- You are able to use your business credit cards for more than just business expenses. Such as using your business credit card for personal expenses like paying for groceries.
Features to look for when choosing a Startup Business Credit Card
Startup businesses are small business that may have been in operation for less than a year. Smaller businesses are able to qualify for lower rates on business credit cards. When starting up a new business, you will not be sure where to begin.
Increasing your startup credit is a great way to get the business rolling and build your credit history too. However, there are some things you need to consider before choosing a startup business credit card.
Annual Fee
An annual fee is an up-front cost of owning the credit card from a bank. It can be paid in full or it can be spread out over a number of months.
The fee can range anywhere from $0 to $500 annually. The annual fees typically range from $95 to upwards of $500.
Business credit cards are known to have a lower interest rate than personal cards. Some business cards have higher interest rates compared to others. The interest rates differ based on factors such as credits score and annual income.
Rewards
Rewards are very appealing but they may not always be the best option if you are someone trying to keep costs down. A popular feature that you can look at as a reward on startup business credit cards is no annual fee. There are different cards that offer no annual fee and there are credit card options where you can pay an annual fee every year.
Minimum Credit Required
To choose a startup business credit card, you have to know what kind of credit you have and the minimum credit that is required. If you are a business person who have less than perfect credit or no credit at all, there are some credit cards that will help you build your credit history. These kinds of cards often require a deposit or collateral and they also charge high interest rates.
Other credits cards require good or excellent credit however, also offer lower interest rates and rewards programs which be able to help you build your business. One of the best ways to start building your business credit is to start by using a secured card.
Here are some features to look for when choosing a startup business credit card: Minimum Credit Required The minimum amount of required credit varies from bank to bank and card type to card type. Some banks may require that you have at least $500 in available funds in order to qualify for their secured cards.
Welcome Offer or Sign-Up Bonus
All small business owners are always looking for ways to reduce expenses and increase profits. The easiest ways to do that is to find the right credit card to suit your needs. Some features to look for when choosing a startup business credit card is Welcome Offers and Sign-Up Bonuses.
When choosing a new credit card, it is important to read the fine print. Many cards offer welcome offers and sign-up bonuses but not all of them are created equally. Some cards may offer high rewards rates on specific purchases while other cards have high annual fees.
Credit cards also come with restrictions on how much you are able to earn with their rewards program. For example, some may offer 2% cash back on specific purchases while others may offer 5% cash back on all purchases.
Another bonus factor you can look for is cards that offer good introductory rates on purchases made with the credit card and an additional bonuses for spending on a certain amount within the first few months after opening the account.
Additional Cards
Some businesses only require a single credit card. But if your business has multiple locations, with employees and contractors, you may need to have a separate card for them. Most business credit cards do offer the same benefits as individual cards but there are also some important things to be considered when choosing the right startup business credit card and additional cards.
Additional cards will only be authorized to users of the account by some credit card companies. But it may more difficult for some startup business credit cards to be approved due to the business’s revenue and its earning history.
Security
Security is another feature that should be taken into consideration when choosing a startup business credit card. In-built security features such as chip technology and biometrics are important.
This will help you protect your card from fraud and theft. Also look for convenience feature that will provide you with easy to use online tools such as online payment options and online account management.
Interest Rates
If you are looking for credit cards that are specifically designed for startups, there are a lot of options out there. The best credit card option for your business will depend on the type of business you have. The most important feature to look out for is when banks offer special interest rates for new businesses. Read the fine print before you sign up.
If you are able to meet a certain criteria, some cards will offer lower rates such as paying your balance in full each month. While other banks offer lower rates based on purchases made with that specific bank. Also, be sure to check whether there any introductory offer that last the entire first year or if they expire after 6 months.
No Pre-set Spending Limit
When choosing a credit card, if you are going to keep your spending under control and avoid interest charges, you should pick the right card. You will want to choose a credit card that has no pre-set spending limit.
This means that there will be no pre-set spending limit set on the card or purchases you make with the card until the credit line has been reached. This would be a great option if you are planning to make large purchases such as buying inventory or equipment.
Other Benefits
With different types of startup business credit cards available in the market, not all of them offer the same benefits. Depending on what bank you decide to be a customer, your startup business credit cards will offer higher fees and interest rates whereas, other banks will offer much different.
Your startup business credit card will help your new business startup to grow and prosper. The benefits that include when looking for a business credit card is no annual fee and high limit with low interest rate.
No annual fee is a great option because you do not have to pay money every year for holding a credit card.
High limits with low interest rates allows you to be able to spend more without having to worry about going over the budget. And paying interest charges on everything you would be purchasing till your next payment date.
What Are The Best Startup Business Credit Cards With No Credit?
When choosing a startup business credit care for your business, the most important thing is to find the card that fits your business needs. There are several types of business credit cards that you should take into consideration when making this decision.
1. American Express Blue Business Cash™ Card
Features
- Approvals in 30 seconds or less
- Automatic approvals for qualified users
- Flexible approval rules to match your business needs
- Free credit card processing
- No paperwork required
- No credit check
- No application fee
- No minimum balance requirements
- No monthly service fees
2. Chase Ink Business Unlimited®
Features
- $500 sign-up bonus after spending $3,000 within the first 3 months of opening your account
- 5% cash back on office supply stores and cell phone expenses
- 1.5% cash back on all other purchases
- No annual fee
3. OpenSky® Secured Visa® Credit Card
Features
- Secured by a cash deposit, not a credit check
- Earn 1% cash back on all purchases
- Get access to exclusive events and offers
- No annual fee
4. Wells Fargo Business Platinum Credit Card
Features
- No annual fee
- Rewards such as 1 point per $1 spent on gas and dining, 2 points per $1 spent on travel, 3 points per $1 spent on shipping purchases and 4 points per $1 spent on all other purchases
- 5,000 bonus points if you make a purchase within the first 60 days of opening your account
5. First Progress Platinum Prestige Mastercard® Secured Credit Card
Features
- No annual fee
- $300 credit limit
- Solid APR of 12.99%, 17.99% or 20.99% variable based on your creditworthiness
- Build your credit history with monthly reporting to all three major credit bureaus
6. Capital One® Spark® Classic for Business
Features
- Earn 2% cash back on every purchase (every day)
- Earn unlimited 1% cash back on all other purchases (automatically)
- Get up to $600 in combined referrals and rewards paid out annually
- No spending caps or foreign transaction fees
- 1% foreign transaction fee
7. Brex Corporate Card for Startups
Features
- 5% cash back on all purchases made at restaurants, grocery stores and gas stations
- No annual fee
- $25 credit for every approved employee you add to your account
- A $250 credit on your first purchase with the card. This can be used to pay off a portion of your first bill or used toward any other type of expense with Brex
- 0% introductory APR on purchases for 6 months after account opening and a 14.99% – 20.99% variable (APR after that, depending on creditworthiness)
Coming to the conclusion, ultimately it is only you who can decide which business credit card will best suit your startup business. Even as a new business with no credit history, there are more varieties of business credit card options for you. Importantly, remember that for a new business, your personal credit score will act as your determining factor in your credit card application.
If your personal credit score is not where you would like it to be, you will still have options to consider like a secured business credit card or prepaid business debit cards. This is a crucial step that you will take when managing your business finances that will support the growth and success of your business startup.
A man asked a fairy to make him desirable & irresistible to all women. She turned him into a credit card.
