Business Credit Card For People With Bad Credit

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Getting a business credit card for people with bad credit is no easy task. In fact, it is easier to obtain a unsecured personal credit card. Whether your business is a sole proprietorship, limited liability or a corporation, you will still be required to use your own personal credit background if your company has no established credit history.


The need for financing is a critical and perennial concern for the owners of small businesses. Indeed, few things are as crucial to the health of a small business operation. Many small businesses are launched by the personal resources of their owners. But they can quickly reach the stage where the owner must look to the credit market for financial help in expanding operations. The banking industry is an important source of working capital. However, entrepreneurs may not realize that applying for commercial credit is a more customized process than obtaining consumer credit, and requires a great deal of preparation by the business applicant.

There are steps you can take to help you obtain a business credit card with bad credit. First, incorporate your business and obtain a EIN number (This will protect your business from your personal creditors).

Second, open up a business checking account.

Third, determine whether or not you already have a business credit file. Small business owners should first know if they have a business credit file with D&B. You can find this out by calling D&B Customer Service at 1-866-785-0430 or visiting http://iupdate.dnb.com/iUpdate/mainlaunchpage.htm. If you don’t have a business credit file, establish one by applying for a D-U-N-S number. Small businesses should apply for a D-U-N-S number, a unique business identification number, as soon as they start their enterprise to start the process of creating a business credit file. If, when you call or visit the D&B web site, you determine that you already have a business credit file, review it completely to understand what information it contains. Add or modify the information as necessary to ensure that those looking at your business credit (such as vendors, suppliers and financial institutions) are making decisions based on complete and accurate information.

Fifth, establish a business credit history. When some companies are starting up, they use their personal credit and finances to get their business going, but they should have established a credit history by putting expenses (such as a business phone line) in their business name and using a commercial bank account to pay their bills.

In order to improve your commercial credit scores and build a positive payment history, the most important thing to do is pay your bills on time. Be very careful not to overextend your business, and use any line of credit judiciously. While payment behavior is important, credit ratings are based on multiple factors. D&B, for example, maintains 150 factors that go into a credit rating, such as industry, revenues and number of employees.

Finally, ask a family member, friend or business partner to co-sign.

If you still are not able to get approved for a unsecured business credit card, then ask your local bank if they will issue you a secured business credit card or loan to help you establish a credit history in your company's name.