Best business credit cards for fair credit in November 2024
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Most of the discourse around credit ratings focuses on achieving good or excellent credit and avoiding bad credit. But many small business owners fall into more of a middle ground. Luckily, if you have fair or average credit, you can still qualify for a business credit card.
In this article, we'll explore how to get a business credit card with fair credit so you can grow your company and smooth out cash flow. We'll also share our picks for the six best business credit cards for average credit, including:
- Ramp Business Credit Card
- BILL Divvy Card
- Brex Card
- Capital on Tap Business Credit Card
- Capital One Spark Classic for Business
- Bank of America Business Advantage Unlimited Cash Rewards Secured Credit Card
By the end of the post, you’ll have all the info you need to choose the right business credit card for your credit score and how to set yourself up for approval.
What’s considered a fair credit score?
Also known as having "average credit," a fair credit score is generally defined as 580–669 in the FICO range or a VantageScore of 601–660. Those with fair credit scores are typically considered subprime borrowers; they might have some late payments or major debts in their credit history, or they might be new to the credit game and simply have limited information to offer lenders.
Can you get a business credit card with average credit?
Yes, you can get a business credit card with fair credit, though it does limit your options. The best business credit card for your needs should evaluate your approval based on factors other than your personal credit score—and offer low enough fees that you’ll be able to use it to build your business credit over time.
The better your business credit score, the lower your interest rate, so business owners with fair credit should pay close attention to each card’s APR. You might end up paying dearly to carry a balance from month to month.
Cards available to those with average credit might also come with other fees. Be sure to check balance transfer fees, foreign transaction fees, and others as you research cards.
And, of course, don't forget to research the eligibility requirements for each card since you might not qualify for reasons unrelated to your credit score. The type of business you're operating and your revenue, for example, might be deciding factors.
Best business credit cards for businesses with fair credit
If you’re looking for a business credit card with fair credit, you have several options. Here are our top picks for card issuers who don’t require good credit. Some of the cards on this list are corporate credit cards, which usually don’t rely exclusively on credit rating, and others are secured business credit cards.
Here’s a closer look at each:
Ramp Business Credit Card: Best overall card to get with fair credit
Annual fee: $0 | APR: N/A
The Ramp Business Credit Card is ideal for businesses with fair credit. There’s no credit check or personal guarantee required to qualify—all you need is an EIN and $25,000 in a business bank account. Ramp offers other ways to get approved, too: If you have a year’s worth of ecommerce revenue, you could qualify for sales-based underwriting.
Once you’re approved, you can issue as many physical and virtual employee cards as your business needs. You’ll immediately start earning cashback on business purchases, and on top of that, you get access to customizable card spending controls, advanced expense management features, and exclusive partner rewards.
Here’s an overview of why Ramp is our choice for the best business credit card for fair credit:
- No credit check or personal guarantee: Ramp doesn’t rely on your credit score for approval, and there’s no personal guarantee required. If you have an EIN and $25,000 in a business savings or checking account, you can get approved.
- Flexible ways to qualify: Ramp uses connections to ecommerce platforms like Stripe, Shopify, and Amazon to underwrite credit limits for small businesses using their sales data. Your business only needs a year of sales history on commerce platforms to be evaluated.
- Additional partner rewards: On top of your cashback rewards, Ramp gives you access to over $350,000 in perks from our partners. Get exclusive credits, discounts, and other offers for business essentials like UPS, Amazon Business, QuickBooks, and more.
- Built-in spend controls: Ramp’s business credit cards help you control spend and build your business credit. Ramp lets you set spending limits at the card, vendor, or category level, and automatically flags suspicious or out-of-policy transactions.
- Modern expense management software: Ramp is more than just a business credit card. When you qualify for Ramp, you get expense reporting automation, real-time financial reporting, accounting integrations, receipt scanning via mobile app, and automated bill pay at no extra cost.
BILL Divvy Corporate Card: Best for low capital requirements
Annual fee: $0 | APR: N/A
BILL, formerly known as Bill.com, is widely known for its AP/AR automation software. It began offering business credit cards with expense management software after acquiring Divvy. BILL’s corporate card is available to registered businesses with an Employer Identification Number (EIN) and a US business bank account.
The BILL Divvy card offers a points-based rewards program with bonus points in various purchase categories. But be sure to read the fine print: You’ll need to spend at least 30% of your credit line each month to earn rewards. Note that BILL does require a credit check for approval—luckily, it’s only a soft credit check, and you can likely get approved with fair credit.
Brex Card: Best for points-based rewards
Annual fee: $0 | APR: N/A
The Brex Card is another popular business credit card for average credit. Brex’s card functions as a charge card, so it requires daily or monthly balance payments; there’s no option to carry a balance from month to month. It offers a points-based rewards system with elevated point bonuses for different categories. Brex’s corporate cards also come with expense management features.
Capital on Tap Business Credit Card: Best for straightforward rewards
Annual fee: $0 | APR: 17.99–35.99%
The Capital on Tap Business Credit Card is our pick for straightforward cashback rewards. You can earn unlimited 1.5% cashback on all purchases, with the option to earn up to 2% cashback if you enroll in weekly autopay. You’ll also get free employee cards with built-in spend controls, and you can connect the card to your accounting software.
The Capital on Tap Business Credit Card requires a soft credit check, and you’ll likely need a FICO score of 670 or higher to qualify. You should also be sure to note the card’s current APR: It may be attractive on the low end, but it’s extremely high on the upper end.
Capital One Spark Classic for Business: Best for credit beginners
Annual fee: $0 | APR: 29.99% variable
The Capital One Spark 1% classic is a great option for small businesses with low credit, fair credit, or even minimal credit. It offers a great way to build business credit on an unsecured credit card, and there’s no annual or transaction fees.
As its name suggests, the Spark 1% Classic offers 1% cashback on every purchase. You’ll also get free employee cards, fraud protection, and year-end spending summaries, which can be valuable for financial reporting and projections.
Bank of America Business Advantage Unlimited Cash Rewards Secured Credit Card: Best for building credit
Annual fee: $0 | APR: 27.99% variable
The Bank of America Business Advantage Unlimited Cash Rewards Secured Credit Card is designed for companies that need to build their business credit. It’s a great choice for small business owners with limited or fair credit, and it offers the aded bonus of unlimited 1.5% cashback.
As a secured credit card, it requires an initial deposit, which functions as your line of credit. With a history of responsible use and on-time payments, you could eventually have the option to upgrade to an unsecured credit card.
Why do you need a business credit card?
Having a dedicated business credit card can be hugely beneficial for businesses with fair credit For starters, it's a great way to build or improve your business credit score, which may be lacking in your company's early days.
You can also take advantage of perks and benefits geared towards businesses specifically, like additional purchase protection and expense management features. You also get the opportunity to earn rewards at the end of each billing cycle, all while increasing your buying power.
A business credit card can also help you separate your business and personal finances. This means less time and effort spent tracking business expenses on your personal credit card, and a much easier experience come tax time.
What’s the minimum credit score needed for a business credit card?
To qualify for most business credit cards, you’ll likely need a FICO score of 670 or higher and a VantageScore of 661 or higher. So, having a fair credit score can eliminate some options for small business owners.
With that said, you can still qualify for some cards—especially secured business credit cards—if you don’t have the credit score to qualify for your desired choice. Secured cards will ask you to put down a security deposit, which then functions as your credit limit.
How to improve your credit score
If you have a fair credit score, there are ways to improve your chances of getting approved for a business credit card and strengthening your credit profile overall.
First, only submit applications for a few credit cards at a time. That's because each time you apply for a credit card, the provider will conduct a hard inquiry into your credit history, which decreases your credit score by at least a few points. For that reason, you want to be selective and choose a card you can realistically qualify for as someone with fair credit.
As for more active steps, pay all your bills before the due date, stay on top of your tax filing, and monitor your credit to ensure no errors that could impact your standing go undetected. Keep solid financial records that you can easily share with potential lenders.
Pay attention to your credit utilization rate as well. That's the ratio of your balance to your credit limit, and in general, you want to keep it below 30% (for example, a balance of less than $3,000 if your credit limit is $10,000). All of these steps demonstrate responsible use of credit and the ability to pay off the balances you carry.
Once you have a business credit card, you should take this same approach. Making payments in a timely manner and keeping your balances low can help improve your credit score and bump you from "fair" into the "good" range.
How to pick the best credit card for your business
If you’re looking for a small business credit card with fair credit, the most important factor to consider is whether you’ll get approved. You likely won’t be able to get approved for most of the more attractive business credit cards, especially options that include a lot of travel perks or other bonuses.
For that reason, be sure to review the eligibility criteria for each card you’re considering. You should only apply for business credit cards you have a realistic chance of getting approved for; otherwise, you could get hit with multiple hard inquiries on your credit report, ultimately hurting your score.
If you’re lucky enough to have a few options available to you, then you can start weighing other factors like APR, account fees, intro APR offers, expense management features, and rewards programs. At the end of the day, the best choice will be the card that aligns most closely with your business needs.
Qualify for Ramp’s business credit card even with fair credit
The Ramp Business Credit Card offers a solution for businesses with fair credit. Unlike many of its competitors, Ramp doesn't run credit checks or require personal guarantees. Instead, we use business revenue and cash balance to determine your eligibility and credit limit. Ramp also has no annual fees, cashback on purchases, and unlimited free employee cards.
We report to the major business credit bureaus, so you can build good credit as you spend with Ramp. Cardholders also get access to modern expense management tools, custom card controls, and accounting tools, allowing you to control business spending, run detailed reports, and scale your business.
FAQs
Don't miss these
- Business credit card with customizable spending controls
- Cashback rewards on purchases
- Unlimited free physical and virtual employee cards
- Must have $25,000 in a business bank account to qualify
- Balance must be paid in full each month
Pros:
- No credit check or personal guarantee required for eligibility
- Advanced expense management features and accounting integrations
- No annual or foreign transaction fees
- Sales-based underwriting provides flexible way to qualify
Cons:
- Must be a corporation, LLC, or LP to qualify
- Must have most of your operations and corporate spend in the US (though international purchases are supported with no foreign transaction fees)
- Doesn’t support balance transfers
- Corporate card available to registered businesses with an EIN and US business bank account
- Comes with expense management software
- Points-based rewards with bonus points on eligible purchases
- Requires only a soft credit check, so it won't temporarily affect your credit score
Pros:
- Doesn't require a hard credit check
- No minimum credit score requirements
- Lower capital requirement of $20,000
- No annual fee
Cons:
- Requires a soft credit check
- Have to use 30% of your credit line in a given month to earn rewards
- Foreign transaction fees
- Corporate card designed for venture-backed startups or mid-market companies
- Functions as a charge card, requiring daily or monthly balance payments, with no option to carry a balance from month to month
- Points-based rewards with different rewards rates per purchase category
- Includes expense management features and Mastercard benefits
Pros:
- No personal guarantee or credit check required for eligibility
- Flexible rewards system with up to 7x points on qualifying purchases
- No annual, foreign transaction, or account fees
- Unlimited physical and virtual cards
Cons:
- Limited to specific business types (C corp, S corp, LLC, and LLPs) with equity investors, substantial annual revenue, or a significant number of employees
- Top rewards require an exclusivity agreement with Brex
- New users must pay off their balance daily
- Business credit card designed for small businesses
- Offers 1% cashback rewards on purchases
- Unlimited free employee cards with custom spending controls
Pros:
- No foreign transaction fees or ATM fees
- No annual fee
- Only requires a soft credit check and a FICO score of 670 or higher
Cons:
- High APR if you carry a balance
- A personal guarantee is required
- Not available to sole proprietors, charities, nonprofits, trusts, or clubs
- Business credit card designed for small business owners with fair credit or a limited credit history
- 1% cashback rewards on purchases
- Free employee cards and fraud liability protection
- Offers the ability to choose your own payment due date
Pros:
- Unlimited 1% cashback on purchases
- No foreign transaction fees
- No annual fee
- Can help build credit if used responsibly
Cons:
- High APR if you carry a balance
- Cashback rewards are slightly lower than average
- No intro offers
- Secured credit card designed to help you build credit
- Requires a refundable security deposit, which acts as your line of credit
- Only a soft credit check is required
- Offers unlimited 1.5% cashback rewards on purchases
- Option to upgrade to an unsecured card with good payment history over time
Pros:
- Flexible cashback redemption options
- Offers the opportunity to upgrade to an unsecured credit card
- No annual fee
Cons:
- High APR and 4% balance transfer fees
- Requires a minimum security deposit of $1000
- Limited spend management features