Is it possible to get a startup business credit card with no credit?
Let’s answer that question.
Starting a new business is exciting but can also be challenging, especially if you don’t have any credit yet. When I started my business, I had the same questions about getting a credit card with no established credit.
You may be thinking that getting approved for a credit card is nearly impossible if you don’t have any credit history. I know you hear this a lot from financial advisors. But don’t get discouraged—I’m not saying it’s hopeless.
In fact, it’s entirely possible to get a startup business credit card even without credit. I’ve done it, and I’ll walk you through the steps I took to make it happen.
Here’s what I learned along the way to help you on your journey
- Why Business Credit Cards Matter for Startups
- Steps to Get a Business Credit Card With No Credit
- Using Personal Credit as a Strategy
- Strengthening Your Application
- Building and Monitoring Business Credit Over Time
- Tips for Getting Approved
- Building Your Business Credit Over Time
Can I get a business credit card with no credit score? Absolutely! And here’s how.
Why Business Credit Cards Matter for Startups
Why Consider a Business Credit Card for Your Startup?
In the beginning, I didn’t fully understand the importance of having a dedicated business credit card. But now I see how valuable it can be.
Even as a startup with no credit, a business credit card can help by providing:
- Keeps finances organized: A business credit card helped me keep my business expenses separate from my personal ones. This made tracking spending a lot easier, especially at tax time.
- Opportunity to Build Business Credit: As you use and pay off the card responsibly, you'll start building a business credit score, which opens doors to larger funding options later on.
- Separation of Finances: A business credit card keeps your personal and business expenses separate, making it easier to manage finances and file taxes.
- Handles Unexpected Costs: Having access to credit gave me the flexibility to deal with surprise expenses, like last-minute supplies or marketing costs.
- Comes with Rewards and Perks: Many business cards offer rewards. In my case, I started earning cash back on business purchases, which saved me a little bit of money each month.
Good read: Complete Guide To Getting a Chase Business Credit Card
Once I knew how helpful a business credit card could be, I got serious about figuring out how to get one, even though I didn’t have an established credit history.
Here’s how I went about it.
Steps to Get a Business Credit Card with No Credit
Step 1: Start with Secured Business Credit Cards
This was one of the best options I found. A secured business credit card is pretty much exactly what it sounds like – “secured” by a cash deposit you make upfront. Think of it as a backup for the lender. If the limit is $1,000, for instance, you’ll need to deposit $1,000 as collateral. This approach is helpful because:
- Low or No Credit Requirements: These cards are often designed for people with little to no credit history, making them accessible for startups.
- Credit-Building Tool: Every time you make payments, you’re building credit, which can help you qualify for better business credit options later.
- Reasonable Fees: Most secured cards have low fees, making them affordable for new business owners.
Some well-known secured business credit cards that I found useful include Wells Fargo Business Secured Card and BBVA Compass Secured Business Card (some names may vary depending on what’s available in your area). You can also visit their site to see your options.
It generally works the same way – you pay a deposit, and that’s your credit limit. From there, it’s all about using the card responsibly to build credit.
Step 2: Explore Cards from Alternative Lenders
Big banks aren’t the only players in the game anymore. I found that alternative financial institutions, like fintech companies and online lenders, often have startup-friendly business credit card options. These companies sometimes look at more than just credit history; they might assess factors like:
- Business Plan Strength: Some lenders want to know your growth strategy and revenue potential.
- Projected Income: If you’re already making sales or have customers lined up, that can help your case.
- Personal Background: Some lenders might consider things like your education, work history, or even your social media presence to assess your trustworthiness.
These online lenders use advanced algorithms that go beyond just credit scores, making them an excellent option for startups. Options here include Brex and Divvy. They cater specifically to small business owners who need flexibility and may not have credit history built up yet. Some even have benefits for growing businesses, like higher spending limits or rewards for certain purchases.
Step 3: Look for Business Credit Cards Designed for Startups
Some banks have credit cards made specifically for startups and new businesses.
These cards often have lower credit requirements and starter perks that help you get going. It took some research, but I found a couple of options that didn’t need a strong credit history to get approved.
I compared the fees, interest rates, and perks before choosing the best one for my needs.
Step 4: Consider Corporate Cards with No Personal Guarantee
Corporate cards usually don’t require a personal guarantee, which means they don’t rely on your personal credit score. These cards can be tougher to qualify for since they’re based on business revenue. But as my business grew, I kept this option in mind. Once I had more steady income, I applied for a corporate card that didn’t require me to personally back it up with my credit.
As you see, there’s a lot of options for you.
Wait, there’s more...
Using Personal Credit as a Strategy
Leverage Your Personal Credit if Needed
If the above options aren’t working out, it might be time to consider a personal credit card for business expenses as a temporary solution.
At first, I used a personal credit card for my business purchases. I knew it wasn’t the same as having a business credit card, but it helped me build my personal credit, which in turn could make it easier to get a business credit card down the road. I just made sure to keep a clear record of my business expenses so I’d be organized when tax season came around.
Here’s how I handled it:
- Use a Low-Interest Personal Credit Card: Look for a card with a low or 0% introductory APR if you need to carry a balance, at least for the first few months.
- Keep Business Expenses Separate: Track all business expenses separately, even if it’s on a personal card, to avoid confusion during tax time.
- Pay It Off Regularly: The goal here is to show you master credit utilization, so try to pay it off every month to avoid interest charges.
Once you’ve established some payment history and your business is more stable, you can apply for a dedicated business credit card, which will help further separate personal and business finances.
Strengthening Your Application
Strengthen Your Application – The Game-Changer
When I was first trying to get a business credit card, I quickly learned that credit wasn’t the only thing lenders look at. Having a solid application can make a world of difference. Here’s how you can create a strong application:
Write a Solid Business Plan
- Business Description: Explain your business model, the problem you’re solving, and your target audience.
- Revenue Projections: Show your expected income, how you’ll reach it, and any early sales numbers if you have them.
- Expense Breakdown: Detail where you’ll spend money and how you’ll manage cash flow.
Provide Financial Projections and Proof of Income (If Available)
If you have any early revenue data or a consistent customer base, share that with the lender.
Consider a Personal Guarantee
Some business credit cards for startups allow you to apply by signing a personal guarantee, meaning you’ll be responsible if the business can’t pay the balance. This option isn’t for everyone, but it does make approval easier for some cards. Just keep in mind that this approach involves a bit of personal risk.
Building and Monitoring Business Credit Over Time
Build Your Business Credit Quickly
Once you have your business credit card, it’s time to use it to your advantage. Building credit isn’t instantaneous, but here’s what worked for me to build credit more quickly:
- Make Small, Regular Purchases: Use the card for expenses you already have, like supplies, subscriptions, or equipment.
- Pay Off the Balance: Try to pay it off in full each month. This practice keeps you from paying interest and shows lenders you’re financially responsible.
- Monitor Your Credit: Check your business credit reports regularly. You can use services like Dun & Bradstreet to track your progress and make sure your payments are being reported.
Reevaluate and Upgrade as You Grow
After a year or so of on-time payments and responsible usage, your business credit profile should look a lot better. At this point, I was able to qualify for a higher-limit, unsecured business credit card with better rewards and lower fees.
Here’s what to do next:
- Upgrade to an Unsecured Card: Apply for an unsecured business credit card with better terms.
- Use Rewards Wisely: Start taking advantage of cashback or travel points on expenses you’ll be paying for anyway.
- Negotiate Better Terms: As your business grows, some lenders will work with you to adjust your credit limit or lower fees.
Additional Tips I Used to Increase My Chances of Getting Approved
Here are some tips that helped me when I was applying for a credit card with no credit history:
- Show Proof of Revenue: Even if my business wasn’t bringing in huge profits, any revenue I had helped make my case. I shared my bank statements to show that my business was starting to make money, which made me look less risky.
- Have a Strong Business Plan: I created a business plan that outlined my goals, expected income, expenses, and how I planned to grow. Some banks were willing to look at this, especially local banks and credit unions. This plan helped show that I was serious and had a strategy in place.
- Keep My Personal Finances in Good Shape: Even though I was applying for a business card, some lenders still looked at my personal finances. By keeping up with my personal bills and maintaining a low balance on my personal credit card, I showed that I was responsible with credit overall.
- Start Small: I didn’t aim for a high-limit card right away. Instead, I applied for a lower-limit card that was easier to qualify for. This approach worked because it allowed me to build up my credit slowly. Later, I applied for cards with higher limits as my credit improved.
Startup Business Credit Cards with No Credit FAQ
What is the Easiest Credit Card for a New Business?
For new businesses, some cards are easier to get than others. Look for “secured business credit cards,” which often require a small deposit but can help build your credit. These cards are usually beginner-friendly and help you create a credit history.
Can You Get a Credit Card With No Established Credit?
Yes, you can! Some business credit cards don’t require a strong credit history. You might start with a secured credit card, or look for companies offering "startup business credit cards," especially ones with EIN-only options. This means you can apply with just your business’s Employer Identification Number (EIN) rather than your personal credit score.
Can You Start a Business with No Credit?
Yes, you absolutely can! Many entrepreneurs start with no credit and build their way up. You can apply for certain small business credit cards designed for people with little to no credit. Starting small and being consistent with payments will improve your credit over time.
Is Startup Business Credit Cards with No Credit, No Deposit Possible?
While many cards for people with no credit require a deposit, some don’t. Options like the Stripe Corporate Card don’t require a personal guarantee or deposit, though you’ll need a solid business revenue to qualify. Check with your bank about similar “no-deposit” cards.
Is there a Startup Business Credit Cards with No Credit and Instant Approval?
Instant approval can be tricky without any credit, but it’s possible! Some credit card companies have online applications that give you an answer right away. Look for business cards with straightforward applications, but remember they may have higher interest rates if your credit is limited.
Is there a Startup Business Credit Cards - EIN Only?
Many business credit cards let you apply using your EIN instead of your Social Security Number (SSN). Cards like these are great if you don’t want to use your personal credit for business. American Express and other major brands sometimes offer this option if your business finances are strong.
Is there such a thing as a Guaranteed Business Credit Card Approval?
There’s no guarantee for every card, but secured business cards offer a high chance of approval. If you have the deposit amount and an EIN, these are often open to new businesses. You’ll just need to make sure you meet any other requirements, like minimum business income.
Recommended: How To Use Secured Credit Card To Build a Tier 1 Credit
What’s the Easiest Credit Card for New Business?
Secured business credit cards are often the easiest option. You put down a deposit, and this becomes your credit limit. Over time, you can qualify for other cards as your credit improves.
What about an American Express Business Credit Card with No Credit Check?
American Express doesn’t always offer a “no-credit-check” card, but they do have options for businesses with limited credit. Some of their business cards may still work for startups with an EIN and steady business income.
Final Tips for Getting a Business Credit Card with No Credit
- Start with a Secured Card: These are easier to get and help you build credit.
- Look for EIN-Only Options: Some cards only need your business’s EIN.
- Be Consistent: Paying on time will build your business credit.
- Check Your Approval Chances: Many credit card companies have pre-qualification checks that don’t affect your credit score.
Starting a business is a journey, and building credit is part of that process. With the right steps, you’ll be able to grow your credit and open up more options for your business. Good luck, and remember, every business owner starts somewhere!
Wrapping It Up
Getting a business credit card with no credit is a gradual process, but with the right steps, it’s entirely possible. Start with secured cards or alternative lenders, build up your credit with regular payments, and look for opportunities to upgrade as you go. Each small step you take now will help you build the foundation for a stronger, more credit-worthy business down the road.
Ready to Boost Your Credit?
If you need help building or repairing your credit, ASAP Credit Repair is here to support you on your journey. Take the first step to unlock better business opportunities—reach out today and let’s get your credit on the path to success!
So, get that application going, use your card wisely, and watch your credit score grow along with your business!