Best business credit cards with no credit check for startups in October 2024

As a startup, having no credit history or a bad personal credit score can make it nearly impossible to get approved for a business credit card. Thankfully, some types of business credit cards don’t require a credit check, helping you access financing even with low creditworthiness.

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This article will review some of the best business credit cards with no credit check and provide you with all the details you need to make an informed decision about which to choose. We'll look at a range of features, benefits, drawbacks, and available options for startups.

How a business credit card with no credit check works

When you apply for a business credit card that doesn’t require a credit check, lenders judge your application against other factors, such as your business revenue and history. This makes them more accessible to businesses with less established credit scores.

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The application process is usually simpler than traditional credit cards, requiring only basic information like your business name, address, and contact details. Once approved, you can use your card immediately up to your specified credit limit.

Why choose a business credit card with no personal credit check?

Applying for your first business credit card will typically trigger a hard inquiry into your personal credit history. In the absence of established business credit, credit card issuers need a way to check your creditworthiness before approving you for a business credit card. Personal credit history is usually the best proxy in these cases.

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A credit card with no credit check is ideal for business owners who don't have an established credit history or who are looking to build business credit. Here are a few situations when these cards can be beneficial:

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• You need to build your business credit score
• You want to get access to a higher credit limit
• You need extra funds for business expenses
• You’re starting a new business and need access to credit
• You’re not eligible for traditional credit cards
• You need to make purchases online or abroad
• You want to spread the cost of purchasing equipment or supplies

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Pros and cons of business credit cards with no credit checks

Before applying for a business credit card with no credit check, it’s important to understand the pros and cons. Here are some of the key benefits and drawbacks to consider:

Pros:

• Quick and easy application process
• Accessible for those with little or no credit history
• Low interest rates
• Ability to build your business credit score over time
• No credit check necessary for approval

Cons:

• May require a personal guarantee
• Lower credit limits than traditional cards
• Fewer rewards and benefits than traditional cards
• Some business credit cards with no credit check may require a higher minimum deposit as collateral

Best business credit cards with no credit check for startups

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Discover Ramp's corporate card for modern finance

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5 alternative options with no credit check for businesses to consider

If your startup or small business is seeking financing, there are several alternatives to business credit cards worth exploring. These options can provide opportunities for growth and financial stability without the need for a credit check. Plus, they offer ways to build business credit without using a credit card.

1. Trade credit

Trade credit allows businesses to make purchases on credit without requiring a credit check. By building a strong relationship with suppliers and consistently making timely payments, you can establish business credit and gain access to the essential resources you need to operate and expand.

2. Alternative lending

Another option is to seek out alternative lending sources such as online lenders or peer-to-peer lending platforms. These options often have more flexible lending criteria and may be willing to extend small business loans to businesses with no credit check.

3. Invoice factoring

Invoice factoring involves selling unpaid invoices to a third-party company in exchange for immediate cash. This can help businesses improve their cash flow and access funds without relying on credit.

4. Merchant cash advances

Merchant cash advances provide businesses with a lump sum of cash in exchange for a percentage of future sales. This option can be particularly beneficial if your business has a consistent stream of revenue.

5. Partnerships

Finally, businesses can consider establishing partnerships or joint ventures with other companies. By pooling resources and sharing risks, your business can access capital and resources without the need for a credit check.

Honorable mention: Secured credit cards

Although they typically require a credit check, secured business credit cards are another good alternative to traditional business credit cards if you or your business have low or no credit. Your personal credit score tends not to be a major factor for approval because of the way these cards work.

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With a secured credit card, you make an initial cash deposit that acts as collateral for the credit card issuer. This deposit directly determines your card's credit limit. For example, a $1,000 deposit would typically allow for a $1,000 line of credit. You then use the secured card just like a traditional credit card by making purchases up to your credit limit and paying down your balance monthly.

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When you use a secured credit card responsibly by making timely payments and keeping your balance low, it reflects positively on your business’s credit report because secured credit card issuers report to the major business credit bureaus. Over time, as you build business credit, you can eventually qualify for the best business cards.

Consider Ramp's business credit card with no credit check

Does your startup or small business need access to credit, but you don’t have the necessary credit score?

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Ramp is a business credit card and expense management platform with no credit check or personal guarantee required. Instead, our qualification process depends on the amount of capital you have in your business bank account, or you may be eligible for our sales-based underwriting.

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Here are a few of the features you can expect from us:

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• Unlimited physical and virtual employee cards
• Automate your expense policy and set custom spending limits at the card level
• No foreign transaction fees when using your card abroad