How to Get a Business Credit Card with No Credit History

A business credit card provides your business or company with an additional line of credit. Such business credit cards can help a business manage its finances more efficiently, as well as earn the company benefits from the credit card company. Applying for a business credit card for a new business or company presents challenges if the business has no credit history.

Contact your local bank, credit union or financial institution at which your business or company has a savings or checking account. Many financial institutions are willing to extend a credit card account to new businesses that already have an established financial history with the institution, albeit no credit history. A business credit card from a local financial institution can help your small business build the credit history it needs to apply for a business credit card at a larger, national bank.

Solicit business credit card applications from large retailers or business service providers.For example, PayPal and Costco typically offer credit cards to those holding merchant accounts.

Apply for a secured business credit card. Secured credit cards typically do not require a credit history, as your company's debt is tied to a physical financial asset such as real estate or buildings. Thus, the credit card company can be assured that its debt will be repaid if your company defaults on its credit card account. The credit limit for such a secured credit card is typically restricted to a percentage of the asset to which you are tying your debt.

Ensure that any of the business credit cards you attempt to get with no credit history are reported to the credit bureau under the name of your business or company. Some financial institutions do not report secured business credit cards (step 3) or small, local business credit cards (step 1). Ask that the credit card be listed under your business name so that you may begin to establish a credit history for your business.

Warnings

  • Apply for a secured business credit card as the very last resort, as the credit card debt will be tied to your company's physical financial assets and presents more risk for your business.