What’s the number one reason why startups fail? They run out of cash or fail to raise the money they need to scale. It’s that simple. Great ideas are, well, great, but it’s hard to take a great idea to the market without a bit of money to back it up.
Along with that, accessing funding when you’re just gaining traction is difficult. It’s like the chicken and the egg scenario. You need funding to gain traction but you need traction to prove that you’re worthy of the funding. What a catch, right? So, what are you supposed to do?
At Wealth Stack, we’ve created an ecosystem within our platform where you can access not only our in-house investment banker for expert advice on how to increase the value of your business but also find the right investors you need to help you access alternative sources of capital.
While that’s beneficial for businesses earning at least $2 million in revenue, we understand that if you’re totally brand new to the game then you might need a quicker, easier option like a startup business credit card. So, without further ado, here are the best crest cards for businesses with no credit history in 2022.
The Best Credit Cards for Businesses with No Credit History in 2022
If you’re looking for a business credit card for startups that offers a pretty hefty sign-up bonus, the Chase Ink Business Unlimited is your go-to card. With this card, you can earn $750 in cash back on your statement after you spend $7,500 on purchases in the first three months of opening your account. For a startup, that’s huge!
There’s also no annual fee, so forget about spending your startup budget on a credit card fee each year. On top of that, there’s a 0% introductory APR which is great as you start funding your business as well, and a 1.5% cashback offer on literally anything you purchase (office supplies, marketing materials, services, groceries for the office, etc.).
However, the downside about this card is that they do run a credit check. However, numerous reports online do note that you can qualify for this card with just “good” credit, which starts at about 670.
Capital One offers great checking accounts for individuals and small businesses, but what about their credit card offers? For newer startups, it’s worth checking out the Capital One Spark Classic for Business. We love it due to the credit rating needed to qualify, which can be in the “fair” range (usually around 580 for most credit models).
This means that if you’re looking for a startup business card with no credit history, the Spark Classic for Business might be your best bet. On top of that, though, it does come with other perks. Those include a $0 annual and 1% cashback on all purchases.
Sure, the rewards aren’t as attractive as some of the other cards on this list, but with the credit score needed to qualify for this card, it’s actually quite a good deal!
Aside from the standard 2% cash back on all eligible purchases of up to $50,000 per year and the 0% introductory APR, the American Express Blue Business Cash card offers something else even more attractive to startups.
This card’s Expanded Buying Power feature is great for startups who want to buy above their credit limit when it’s necessary to build the business. With this card, the freedom to spend beyond the specified credit limit is available for those who have shown themselves as reliable customers (for American Express, this means maintaining a great payment history and financial resources in the account).
This means that you, as a business owner, can now take on more risk without worrying if you'll be able to make up any lost funds later. Even better, though, is the chance to earn $250 towards your statement after you make $3,000 in purchases during the first three months.
Do note, though, that this card does note that applicants need to have at least a “good” credit score to qualify. If you don’t, then you might want to check out a card like the…
Secured credit cards are often the best option for those with literally no credit history or for those with poor credit history. Why? You really don’t need a good credit score to open a secured credit card because they ask for a deposit instead. The term “secured” comes from the idea that you’re “securing” the card with a deposit that you’ll get back at a later date.
The only downside to these types of cards is that your credit limit is often very limited or limited to the amount you put down as your deposit (which starts at around $200 usually). However, if you have no credit history and don’t want them to perform a credit check, it’s a great option.
The OpenSky Secured Visa credit card is one such card and is the best option for startup founders and business owners with credit scores under 580. While the card comes with a $35 annual fee, you can often use the card for one year to build up your business credit and then switch to a regular, unsecured credit card later.
Remember the Capital One Spark Classic card we mentioned above? Well, Capital One’s done it again. Their Spark Cash Plus card is another winner, and it comes loaded with even more perks than the regular classic card.
However, you do need a decent credit score to get this card! If you have that, then you can enjoy unlimited cash-back reward rate for all purchases with no credit limits. Uh, yeah, you heard that right. NO CREDIT LIMIT. As a trade off, the card comes with a hefty $150 annual fee.
That’s not bad, though, considering the fact that you also get an itemized year-end spending report annually that will probably help you offset the time and cost of figuring all of that out yourself (or paying your accountant to do it).
Alternative Choice: Partner with Wealth Stack
As mentioned above, Wealth Stack is a digital advisory platform offering financial solutions to small business owners and startups. We provide retirement solutions and advisory services like capital introductions.
Yep, that means that if you’re a member of the Wealth Stack platform, we’ll introduce you to the right investors in our network so that you can easily access the capital you need to grow your startup to success.
On top of that, if you’re a member of the PRO pack, you’ll get five hours a week with Andrew, our Founder & CEO, who just so happens to be a former investment banker. He’s crunched the numbers, made the deals, and managed over $1 billion during his career. He can absolutely help you too.
When you reach that point, Wealth Stack is here for you. The Wealth Stack Growth Pack is designed to help you:
- Access the funding you need at the terms you want
- Learn how to use that cash to increase the value of your business
- Attract top talent
- Increase business productivity
- Retain your best employees
To start investing in yourself, your employees, and your startup, learn more about the Wealth Stack Growth Pack here.