What credit card options exist for businesses with no credit history
New businesses without a credit history can get a credit card, but the options are narrower and the terms less favorable than for established companies. Most card issuers require either a personal may provide (meaning you are personally liable for the debt), a cash deposit to find the card, or proof of business revenue — even if that revenue is recent.
The three main routes are secured business credit cards (backed by a cash deposit you control), cards that report to business credit bureaus (which build your business credit score over time), and cards requiring a personal may provide (where the issuer looks at your personal credit instead). Which one works depends on your personal credit score, how much cash you can set aside, and whether you want to build business credit separately from your personal credit.
Key Takeaways
- Secured business cards require a cash deposit but do not require an established business credit history, and the deposit becomes your credit limit.
- Cards that report to business credit bureaus like Dun & Bradstreet help you build a separate business credit score, which matters for future loans and vendor terms.
- If your personal credit score is fair or better, many issuers will approve you based on your personal credit alone, even with no business history.
- Annual fees on business cards for new companies often run $95 to $250, and interest rates are typically higher than cards for established businesses.
- You will need an Employer Identification Number (EIN) from the IRS and basic business documents like a lease or business license to explore.
Secured business cards: how the deposit works
A secured business credit card works like a secured personal card: you deposit cash with the issuer, and that deposit becomes your credit limit. If you deposit $5,000, your limit is $5,000. The deposit sits in a restricted account and earns little or no interest, but it is yours — you can withdraw it once the issuer converts the card to unsecured (usually after 12 to 24 months of on-time payments).
The main advantage is that issuers approve secured cards based on the deposit, not your credit history. The main disadvantage is that your cash is locked up and earning nothing while you use it as a credit line. Secured cards also typically carry annual fees of $95 to $150 and higher interest rates than unsecured cards.
Issuers offering secured business cards include Capital One, Discover, and some regional banks. The terms vary: some report to business credit bureaus (which helps you build business credit), while others report only to personal credit bureaus. Before you explore, confirm whether the card reports to business bureaus, because that determines whether it builds your business credit score or only your personal score.
Building business credit with cards that report to business bureaus
Business credit bureaus like Dun & Bradstreet, Equifax Business, and Experian Business track the payment history of businesses, separate from personal credit. A business credit score affects your ability to get business loans, negotiate vendor payment terms, and find better rates on future credit cards. If you plan to grow the business and borrow later, building business credit now matters.
Not all business credit cards report to business bureaus — many report only to personal bureaus. Before you explore, check the issuer's disclosure or call and ask directly: "Does this card report payment history to business credit bureaus?" If it does not, the card builds only your personal credit, not your business credit.
Cards that do report to business bureaus include some offerings from American Express (for businesses with revenue), Brex (for startups with a founder's personal credit score of 650 or higher), and certain cards from regional banks. These cards often require either a personal may provide, a cash deposit, or proof of business revenue — but the payoff is that on-time payments build a business credit file that follows your company, not you personally.
Personal may provide cards: when the issuer looks at your credit instead
Many business card issuers will approve you based on your personal credit score alone, even if your business has no credit history. This is called a personal may provide: you sign an agreement saying you are personally responsible for any debt the business runs up on the card. The issuer pulls your personal credit report, checks your personal credit score, and decides based on that.
This route is fastest if your personal credit score is fair or better (usually 650 or above). You do not need a cash deposit, and you do not have to wait for business credit to build. The downside is that the card does not build business credit — it only builds your personal credit. If you later explore for a business loan, the lender will see no business credit history and may treat you as a startup even though you have been running the company for years.
Most major issuers — Chase, American Express, Capital One, Discover — offer business cards on a personal may provide basis. The approval decision usually comes within a few days. Interest rates and annual fees vary widely, so compare offers before you explore.
What documents and information you need to provide
Business card issuers ask for different information depending on the card type, but most require the same core documents. You will need your Employer Identification Number (EIN) from the IRS — this is free and takes about 15 minutes to request online at irs.gov. You will also need your Social Security number (for the personal may provide), your business address, and your business structure (sole proprietorship, LLC, S-corp, etc.).
Some issuers ask for proof of business existence, such as a business license, a lease in the business name, or a business bank account statement. Others ask for proof of revenue — a bank statement showing deposits, a tax return, or a profit-and-loss statement. If your business is very new (less than three months old), some issuers will skip the revenue requirement if your personal credit is strong enough.
A few issuers, particularly Brex and some American Express cards, ask for additional information like your business plan or details about your industry. But most mainstream issuers (Chase, Capital One, Discover) keep the process straightforward and focus on your personal credit score and the cash deposit (if secured).
Comparing annual fees, interest rates, and rewards for new businesses
Business cards for new companies typically cost more than cards for established businesses. Annual fees usually range from $0 to $250, depending on the card and the issuer. Secured cards tend to charge $95 to $150 per year. Unsecured cards based on a personal may provide often charge $95 to $150 as well, though some issuers waive the first-year fee.
Interest rates (called the APR, or annual percentage rate) are usually higher for new businesses than for established ones. Expect APRs in the range of 18% to 25% for a card based on a personal may provide, and similar rates for secured cards. This is because the issuer sees you as higher risk — you have no business payment history to review.
Rewards programs exist on some business cards for new companies, but they are often limited. You might earn 1% cash back on all purchases, or 2% to 3% on specific categories like travel or office supplies. Premium cards with higher annual fees ($150 to $250) may offer better rewards, but the math rarely works in your favor unless you spend $10,000 or more per year on the card.
How to use a new business credit card to build credit
Getting the card is only the first step. To build credit (whether personal or business), you need to use the card and pay the bill on time, every month. Set up automatic payments for at least the minimum balance, or better yet, the full balance. Late payments damage your credit score and can trigger higher interest rates or card cancellation.
Keep your balance low relative to your credit limit — ideally below 30% of the limit. If your limit is $5,000, try to keep the balance under $1,500. This ratio, called credit utilization, affects your credit score. High utilization signals financial stress and lowers your score, even if you pay on time.
Use the card for regular business expenses: supplies, software subscriptions, fuel, meals with clients. The more you use it and pay it off, the faster your credit history builds. After 12 to 24 months of on-time payments, you may be able to convert a secured card to unsecured, increase your limit, or move to a better card with lower fees and rates.
Frequently Asked Questions
Do I need a business license to get a business credit card?
Not always. Some issuers require a business license, but many do not. A sole proprietorship can often get a business card using just a Social Security number and an EIN. An LLC or corporation typically needs a business license or articles of incorporation. Call the issuer before you explore to confirm what they require for your business structure.
What if my personal credit score is poor?
A secured card is your best option. You deposit cash, and the issuer approves you based on the deposit, not your credit score. After 12 to 24 months of on-time payments, you can convert to unsecured and improve your credit score. Some issuers also offer cards for fair credit (scores around 550 to 650), though the terms are less favorable.
Can I get a business credit card without a personal may provide?
Yes, but it is rare for new businesses. Established companies with strong revenue and business credit can get cards without a personal may provide. As a startup, you will almost certainly have to sign a personal may provide or provide a cash deposit. The may provide protects the issuer if the business fails.
How long does it take to build business credit?
Business credit bureaus need at least three to six months of payment history before they generate a score. After 12 to 24 months of on-time payments, you will have a meaningful business credit file that lenders and vendors can review. The faster you build it, the sooner you can access better terms on future business loans and credit cards.
Should I use a business card or a personal card for my new business?
A business card is better if you plan to build business credit or keep business and personal finances separate. A personal card is simpler if your business is very small and you do not plan to borrow later. Using a business card also makes accounting easier because all business expenses are in one place, separate from personal spending.