Best business credit cards with no credit check for startups in October 2024
Benchmark your company's expenses with Ramp's data.
straight to your inbox
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.
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.
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.
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:
- 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
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
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.
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.
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?
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.
Here are a few of the features you can expect from us:
- 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
FAQs
Don't miss these
The Ramp Business Credit Card is ideal for startups without a credit history. You just need an EIN number and $25,000 in a business bank account to qualify, and there's no credit check or personal guarantee required. Ramp's business credit card offers cashback on purchases and built-in expense management software to streamline your business finances.
Some of its features include receipt matching, subscription management, and AI-powered spending insights. Ramp is an excellent choice for startups that are aiming to earn rewards on business purchases while managing expenses.
- Credit limits up to 30 times higher than traditional credit cards
- Sales-based underwriting makes for an easier qualification process
- Advanced expense management automation and accounting integrations
- No annual fee or foreign transaction fees
- Must be a corporation, limited liability company, 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 designed for venture-backed 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 points per purchase category
- Includes expense management features and Mastercard benefits
- Flexible rewards system with up to 8x points on certain categories
- No annual or account fees
- No personal guarantee or credit check required for eligibility
- 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
- Corporate card available to registered businesses with an EIN number and U.S. business bank account
- Comes with expense management software
- Points-based rewards with bonus points in different categories
- Requires only a soft credit check, so it won't temporarily affect your credit score
- Doesn't require a hard credit check
- Lower capital requirement of $20,000
- No annual fee
- Requires a soft credit check
- Fair credit is needed to qualify
- To earn rewards, you have to use 30% of your credit line in a given month
- Foreign transaction fees
- Secured credit card that requires a refundable security deposit
- The security deposit acts as the credit line
- No bank account or credit check is required to qualify
- Money can be funded through online banking, money order, or Western Union
- Doesn't require a credit check for approval
- Reports to the credit bureaus to help build your credit score
- Access to credit education and financial management tools
- Annual fee required
- Higher interest rates compared to some other cards
- No rewards program or cashback incentives
- Limited benefits beyond credit building