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Best Business Credit Cards for Bad Credit in 2020

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Securing a line of credit for your business can be difficult when your credit score is below average or you’ve made credit mistakes in the past. But all isn’t lost and, in fact, some business credit cards for bad credit come with lax standards that make it significantly easier to get approved. This may mean they’re secured credit cards, which require a cash deposit as collateral to get started. However, small business credit cards for bad credit can help you get your foot in the door.

If you’re looking for the easiest business credit card to get, consider the cards we’ve highlighted below and how they might work for your small business.

Here are Bankrate’s top picks for business credit cards for bad credit in 2020:

  • Best overall: Capital One® Spark® Classic for Business
  • Best secured credit card for business: Wells Fargo Business Secured Credit Card
  • Best secured credit card with rewards: BBVA Compass Business Secured Visa Credit Card

Best overall

Capital One Spark Classic for Business

  • Earn an unlimited 1% back on all purchases
  • No annual fee
  • Available for average credit
  • Free employee cards

Why it’s the best overall business credit card for bad credit

We like the Capital One Spark Classic for Business the most among business credit cards for bad credit based on the simple fact this is an unsecured credit card. This means you won’t have to put down a cash deposit as collateral, and you can secure a real line of credit you can actually borrow against right away.

You can also get approved for this business credit card with “average” credit, which makes it a doable option if your credit isn’t stellar. Finally, we love the fact that there’s no annual fee and that you get free employee cards for your business. You also get the chance to earn 1 percent back on all the business purchases made with your card, and you can start building your credit right away.

Best secured credit card for business

Wells Fargo Business Secured Credit Card

  • Earn 1.5% cash back on your spending or 1 rewards point per $1 spent
  • Earn 1,000 bonus points when your company spend is $1,000 or more in any monthly billing period
  • $25 annual fee per card
  • Credit line from $500 to $25,000
  • Available to consumers with no credit or limited credit

Why it’s the best secured business credit card for bad credit

The Wells Fargo Business Secured Credit Card is the top secured credit card for business due to its relatively low carrying costs and the fact you can earn some rewards. This card charges a $25 annual fee for each card you carry, including up to nine additional employee cards, but you can access a line of credit between $500 and $25,000 depending on your income and other factors. This is a secured business credit card, however, meaning you’ll have to put down a cash deposit as collateral to get started.

Not only will your credit payments with this card be reported to your personal credit reports, but Wells Fargo reports your payment and usage behavior to the Small Business Financial Exchange as well. This means you’ll get the chance to build personal and business credit as you learn better credit habits and make on-time payments with your card. Also, as your credit score improves, Wells Fargo promises to periodically review your account to see if you’re eligible for an upgrade to one of their unsecured business credit cards.

Best secured credit card with rewards

BBVA Compass Business Secured Visa Credit Card

  • Earn 3x points at office supply stores and 2x points at gas stations and restaurants
  • Earn 1x points on all other purchases
  • $40 annual fee (waived for the first year)
  • Free employee cards
  • Secure your line of credit with a savings account

Why it’s the best secured business credit card for bad credit with rewards

The BBVA Compass Business Secured Visa Credit Card made our list due to the fact there’s no annual fee the first year and it has a generous rewards program. Earning 3x points at office supply stores and 2x points at gas stations and restaurants could easily help you rack up points quickly, and you’ll also get 1x points on all other purchases you make with this card.

You’ll have to put down a minimum deposit of $500 to get started with this card, but your deposit goes into a savings account set aside on your behalf. From there, your available credit will work out to 90 percent of your savings account balance, or $450 if you put down $500 as collateral.

This card also comes with free employee cards and perks like auto rental insurance for business, purchase protection against damage or theft, extended warranties, travel accident insurance and travel and emergency assistance.

How to choose the best business credit card for bad credit

Check your credit score

When it comes to startup business credit cards for bad credit, it’s possible you’ll have to start your journey with a secured credit card. However, some business owners assume their credit is poor when it’s really just average or “okay.” With that in mind, you should check your personal credit score to see where you stand. According to myFICO.com, a “fair” credit score ranges from 580 to 669, so you could potentially qualify for an unsecured credit card with a FICO score in that range, especially if it’s on the higher end.

Compare fees and interest rates

Make sure to check for fees, including added fees for additional employee cards. Other fees to watch out for include annual fees, application fees, late fees and over-the-limit fees. Interest rates tend to be high for all credit cards for bad credit, so you should check to see about ongoing APRs as well.

Look for rewards

You should also look for and compare rewards programs, including the type of rewards you can earn and any bonus spending categories that may be available. Ideally, you’ll find a business credit card for bad credit that offers a generous flat rate of rewards or bonus categories you happen to spend a lot in for your business.

Frequently asked questions about business credit cards for bad credit

Do business credit cards for bad credit help you build your credit score?

Business credit cards for bad credit can help you build your credit score since they report your credit movements to the three credit bureaus. However, some business credit cards don’t report your payments to your personal credit reports, meaning responsible credit use with a business credit card may not directly boost your personal credit score.

How do I apply for a business credit card for bad credit?

Applying for a business credit card online is easy. All you have to do is find the best card for your needs, hit “apply now,” and provide information like your name, Social Security number, business type, business and personal income, your address and other details related to your business.

Do I really need a dedicated business credit card?

Having a dedicated business credit card can be helpful if you need to keep personal and business purchases separate. A business credit card can also help you build your business credit score, which is separate from your personal credit score.

What is a secured credit card?

A secured credit card is any card that requires a cash deposit as collateral to get started. These cards are typically geared to individuals and small business owners who have poor credit (or no credit) that prevents them from qualifying for an unsecured credit card.

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Jackson receives financial reporting award

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JACKSON, Mich. (WILX) – The City of Jackson is getting international recognition for its transparency in financial reporting.

The Government Finance Officers Association of the United States and Canada (GFOA) awarded the Certificate of Achievement for Excellence in Financial Reporting to Jackson for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ending June 30, 2019.

The CAFR was judged by an impartial panel to meet the high standards of the program. Standards include demonstrating a constructive “spirit of full disclosure” to clearly communicate the financial story of the City and encourage users and groups to read the CAFR. The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting.

“This is great for the City as a whole because it improves our bond rating,” said City Manager Jonathan Greene. “We believe this award will help our residents understand the work we do to make the City’s finances transparent and easy to understand.”

Bond Ratings are letter grades assigned to bonds that indicates good or bad credit for an entity like the City of Jackson. By having a strong bond rating cities are granted opportunities to pay back interest at lower rates.

The CAFR can be viewed HERE.

Copyright 2020 WILX. All rights reserved.

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Letter: Vote for Kiesha Preston | Letters

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The residents of Roanoke, Virginia, need to get out of the box of voting based on party affiliation. It’s time to vote for the best candidate to do the job.

Kiesha Preston is running as an independent and is the best choice for Roanoke City Council. When she was only three years old, she was troubled because a local Kroger store removed the kiddie carts. She asked me how to get them back so she could shop beside me. I told her to go to the manager and she did. She stated her case, and a few weeks later those kiddie carts were back in the store.

Kiesha also has presented a bill to Congress that was approved. The Virginia Domestic Violence Victims Protection Act prevents domestic violence victims from not being able to rent an apartment because of bad credit as a result of their abuser ruining their credit.

These are but two examples of Kiesha’s tenacity and getting results. We need people on council who have no agenda and are truly willing to work for the least of us.

Kiesha is not intimidated by those in power and will hold her own to help those who cannot help themselves. This is why she is the right person to get the job done.

Please do not be discouraged because you are tired of the same old same old where parties are concerned. You have another choice so please vote for Kiesha Preston. She has been working tirelessly on behalf of the people without being elected to an official office. Just imagine what she can do once she is officially on City Council.

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This One Credit Card Will Get You the Most Cash Back Right Now

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Let’s admit it, choosing the right credit card can be a stressful process. There are so many variables to consider—from annuals fees to credit score requirement—not to mention the various rewards and benefits each card offers, and how those align with your lifestyle and spending habits. Then there are those hidden fees and interest rates you have to reckon with. In other words, it takes a lot of work to make a truly informed decision when it comes to choosing a credit card that’s right for you. Perhaps a good cash back program is high on your credit card priority list because, well, who doesn’t like some extra money in their pocket?

To help you decide on the credit card that is going to get you the most cash back, the experts at personal finance site WalletHub compared more than 1,500 current credit card offers. From that large pool, they narrowed down the field to the cards that offer cash back rewards, comparing those offers based on initial bonuses, rewards earnings rates, annual fees, and more. From that analysis, here are the best credit cards that will get you the most cash back right now. And for more money matters, check out This Is the State Where Your Money Is Worth the Least.

8

Alliant Cashback Visa Signature Credit Card

Best for: Cash back on all purchases

Cash-back rate: 2.5 percent

Annual fee: $0.00 for the first year; $99.00 after that

What kind of credit you need to get one: Excellent

Learn more about the Alliant Cashback Visa Signature credit card here.

If you are worried about having buyer’s remorse after choosing a credit card, put that into perspective by checking out What You’re More Likely to Regret Than Anything Else You Do.

7

Discover It

Best for: People with bad credit

Cash-back rate: 1-2 percent

Annual fee: $0.00

What kind of credit you need to get one: Bad

Learn more about the Discover It credit card here.

6

U.S. Bank Cash+ Visa Signature Card

Best for: Cash bonus for good credit ($200.00)

Cash-back rate: 1-5 percent

Annual fee: $0.00

What kind of credit you need to get one: Good

Learn more about the U.S. Bank Cash+ Visa Signature Card here.

And to make sure you have money to pay off those monthly bills, avoid The Biggest Career Mistake You’ll Ever Make, According to Experts.

5

Chase Freedom Unlimited

Best for: No APR on purchases

Cash-back rate: 1.5-5 percent

Annual fee: $0.00

What kind of credit you need to get one: Good

Learn more about the Chase Freedom Unlimited credit card here.

And for more things that will help you and your family stay on the right financial track, check out The No. 1 Sign You Shouldn’t Buy That House, According to Realtors.

4

Capital One QuicksilverOne Cash Rewards Credit Card

Best for: People with limited-to-fair credit and looking for low annual fee

Cash-back rate: 1.5 percent

Annual fee: $39.00

What kind of credit you need to get one: Fair

Learn more about Capital One QuicksilverOne Cash Rewards Credit Card here.

3

Citi Double Cash Card—18 month BT offer

Best for: Flat-rate rewards

Cash-back rate: 2 percent

Annual fee: $0.00

What kind of credit you need to get one: Excellent

Learn more about the Citi Double Cash Card here.

2

Capital One Savor Cash Rewards Credit Card

Best for: Dining and entertainment

Cash-back rate: 1-4 percent

Annual fee: $95.00

What kind of credit you need to get one: Good

Learn more about the Capital One Savor Cash Rewards Credit Card here.

1

Blue Cash Preferred Card from American Express

Best for: Most cash back overall

Cash-back rate: 1-6 percent

Annual fee: $0.00 for the first year; $95.00 after that

What kind of credit you need to get one: Good

Learn more about Blue Cash Preferred Card from American Express here.

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