Business credit cards for people with no credit history exist because roughly 50% of business owners start a business in a garage or basement, according to the Small Business & Entrepreneurship Council. Likewise, starting small usually means having no credit history.
What do you do when you need access to cash and haven’t established credit history?
To make your life easier, we’ve put together a list of the top business credit cards with no credit required by the lender.
These credit cards were created to help business owners who have no credit histories, and not for those with bad credit scores.
5 Best Credit Cards for People with No Credit History
Fortunately, you can apply for a credit card with no credit. So, let’s review our list of credit cards for new businesses with no credit history.
1. OpenSky Secured Visa Credit Card
Requirements: $200 minimum refundable deposit
Interest Rates: 17.39% variable
Fees: $35 annual fee
This is one of the best credit cards for people with no credit because there’s no credit check when you apply. It allows you to build credit in 6 months at a reasonable cost. Plus, it sends monthly reports to the 3 major credit bureaus. In addition, the OpenSky credit card allows you to request a credit increase.
2. First Progress Platinum Select Mastercard Secured Credit Card
Website: First Progress Platinum Select
Requirements: $200 – $2,000 refundable deposit
Interest Rates: 13.99%variable
Fees: $39 annual fee
The First Progress card sends monthly reports to the 3 major credit bureaus, which allows you to build your credit score, making it one of the top business credit cards for people with no credit options.
How to get a credit card with no credit from First Progress? First, you need to complete their application, which has an expedited processing option, and there’s no credit history required to apply. It could definitely be the easiest credit card to get with no credit.
*Not available in NY, IA, AR, and WI
3. Tomo Credit Card
- Must link at least one banking account through Plaid.
- Payments within the first week are deducted from a bank account; then weekly payments must be made by the cardholder
- Waiting period up to several weeks to receive approval
- May qualify with a passport in place of SSN or ITIN
Interest Rates: None
The Tomo credit card is one of the best credit cards for new businesses with no credit history because it has 1% cashback on purchases and a possible credit limit of up to $10,000! And that’s not all, it sends monthly reports to the 3 major credit bureaus, and there’s no credit history required.
Unfortunately, the card does not allow you to carry your balance from one month to the next.
4. Chime Credit Builder Card
- Must set up Chime Spending Account to receive direct deposits
- $200 initial direct deposit required
- Similar to a prepaid debit card
Interest Rates: None
The Chime card ended up on our Best Credit Cards For People With No Credit History list because it has automated payments to avoid paying late and no minimum security deposit. It also helps you increase your credit score by an average of 30 points. Plus, there’s no credit check, and it sends monthly reports to the 3 major credit bureaus.
5. GO2bank Secured Credit Card
- $100 minimum deposit
- Go2bank account required
- Must be a US citizen or permanent resident
Interest Rates: 22.99%
Fees: No annual fee, $15 overdraft fee
Like all business credit cards for people with no credit, there’s no credit check on the GO2bank card, and it sends monthly reports to the 3 major credit bureaus. It also offers cashback on eGift card purchases.
*All credit card ratings (rounded) taken from creditcardratings.com, askmrcreditcard.com, and wallethub.com
How to apply for a credit card with no credit?
To apply for a credit card with no credit, just enter their website of the issuer (we provided them for you on the above list) and start an application.
The Benefits of Credit Cards for Businesses
Entrepreneurs routinely run their businesses using money from savings or cash loans from family members and friends. But then they discover that they need extra money.
Here’s where credit cards enter the picture as a source of financing.
Having more cash on hand improves cash flow and provides needed capital to expand their products and services.
With some business credit cards for people with no credit, you earn rewards points and cashback on purchases. Moreover, all purchases you charge and pay off each month are interest-free. Another advantage of having a business credit card is that card issuers may offer you better interest rates and terms if you make payments on time.
But while a business credit card is a valuable financial tool, it might not be the best option for you.
Business owners consider whether to get a business credit card or take out a small business loan to invest in their businesses. The latter is better to make bigger investments.
Are Business Credit Cards with no Credit the Right Source of Financing?
When you’re in a position to get funding, you can use business credit cards for people with no credit history to make purchases such as these:
- Make improvements, buy inventory in small quantities, or improve cash flow
- Pay suppliers
- Buy office supplies and small equipment
- Book flights and pay for other business travel expenses
- Make emergency purchases to repair equipment and to cover other unexpected expenses
As you can notice, these are routine or smaller expenses. They are not really investments that can truly boost your business.
But if you need to make larger purchases to grow your business, a credit card might not be the best option for you.
If you need a steeper amount of money to make the right investments, a small business loan might be exactly what you’re looking for.
Business loans were created to grow a business, and the best thing is that there are many loans out there for business owners with no credit history.
Keep reading to learn about how to get a loan with no credit history.
A Financing Alternative for Business Owners Without a Credit History
Like business credit cards with no credit, our loans help you build credit to plan for future and more costly expenditures as you grow your business.
Camino Financial approves applicants with no credit history.
Our financing options are an attractive alternative to loans from brick and mortar banks, credit cards, and lenders that require collateral to secure loans.
We offer business loans from $5,000 to $400,000 with interest rates ranging from 12% to 40% and a payback period of 24 to 60 months. Applicants can receive funding in as little as 2 days.
- Collateral and credit history are not required to secure a loan.
- Fixed loan terms and payments
- After 8 months, you may qualify for a larger loan amount at a lower interest rate.
- An SSN is not required to apply. We accept ITINs.
- No prepayment penalties
- Free subscription to our newsletter containing financial tips to help you succeed and grow your business.
As you contemplate your next financial steps, use our financial tool to calculate a business loan. You can determine in a few seconds the loan amount that’s most comfortable for your budget.
Once you decide to apply for a loan with us, we will work with you to ensure the loan arrangement matches the needs of your business. In every phase of the loan process, we stand by our motto, “No Business Left Behind,” because clients are our priority.
Business Credit Cards with No Credit: FAQs
Can I get a credit card with no credit?
Yes, you can! The most common alternatives for people with no credit history are secured credit cards. This means that they require you to make a minimum deposit (generally around $200 to $300) that will work as your credit limit. If you fail to pay, the card issuer will keep the deposit you made to pay your debts.
How to get a credit card with no credit?
Getting credit cards for people with no credit is not as difficult as one might imagine. To apply for a credit card with no credit, you need to follow these steps:
Are there other no-credit business alternatives?
Many lenders are willing to offer credit to people that still have to create their credit history. For example, Camino Financial offers small business loans that don’t require a previous credit history.
You can get from $5,000 to $75,000 with fixed monthly payments. Plus, the quick application process is completely online and available 24/7.
Why not get a loan to finance your business needs?