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You can get a credit card for your business that doesn’t require a personal guarantee. You’ll need to provide your personal credit score as part of the business credit card application.
Credit card issuers for the no personal guarantee requirement type of card can only go after your business if you default. As a small business owner, you won’t be on the hook to pay your business debt with your personal assets.
What are business credit cards, and who needs these cards? you might also be asking yourself why should I get a business credit card. If your business has an owner or partner who needs to minimize personal liability, these cards afford financial protection.
What are Business Credit Cards With No Personal Guarantees?
These types of cards are often called a Corporate Credit Card. That’s because the card is used to pay for expenses of the business, and the business assets (revenue, assets) pay for the credit card debt. A corporate card will have no annual fee.
It’s not easy to qualify for some of these corporate cards with no personal guarantees. For most, business credit card issuers for a corporate card want to see that your business can prove a strong annual income, based on reports from financial institutions.
Business credit cards require that your personal credit scores should be good or excellent. On the application, you’ll be asked to provide information about your personal credit reports and your application is likely to be rejected if you have poor personal credit.
Cards with no personal guarantee aren’t linked to your personal liability with accounts and assets. Instead, your card is linked to your business, and only your business account and assets are used to pay it.
Best Business Card: No Personal Guarantee Necessary
Which business credit cards without personal guarantee are the best business credit cards?
Different types of credit cards provide perks such as cash back on a percentage of the purchase amount, reward miles and similar values.
The additional value for these small business credit cards is that your personal finances and other assets are protected. The credit card issuer knows that there’s no personal risk, so the issuer wants to ensure that your business has good annual revenue, along with other financial health indicators, to warrant using the card.
1. Shell Small Business Card
- Annual Fees: $0
- APR: 23 to 29%
- Credit Needed: Good.
- Important Notes: You can only use the Shell Small Business Card for gas buys at Shell Gas Stations. You can also use it at Jiffy Lube. You may get up to .10 off per gallon for the first 6 months. Fill ups at other types of gas stations are not eligible gas purchases.
2. Ramp
- Annual Fees: $0
- APR: 0% for the first 12 months, then 13.24 to 19.24%
- Credit Needed: Good. Must have $250,000 in the business bank account but another Ramp Corporate Card holder can refer you to help with your application.
- Important Notes: You’ll get 1.5% cash back and expense reporting by category. You’ll also be able to use the partner rewards program at participating companies for significant discounts.
3. Office Depot OfficeMax Business
- Annual Fees: $0
- APR: 20.80 to 29.99%
- Credit Needed: Good
- Important Notes: To get the Office Depot OfficeMax Business credit ard you have a few options: $5 million in annual sales, operate as a government entity, or operate as a nonprofit. You may also qualify based on a minimum bank balance. There’s a generous rewards program for office supplies and other eligible purchases at the store.
4. Sam’s Club Business Mastercard
- Annual Fees: $0
- APR: 15.65 to 23.65%
- Credit Needed: Good
- Important Notes: You must have a Sam’s club membership for the Sams Club Business Mastercard. You’ll get 5% cash back on gas purchase and 3% cash back on Sam’s club purchases. It’s a Mastercard, and you’ll get 1% back on other purchases.
5. Staples More Card
- Annual Fees: $0
- APR: Based on creditworthiness, most small business owners qualify for the lowest amount, 14.99%. Other levels are 19.99% and 23.99%. They are fixed rates.
- Credit Needed: Good
- Important Notes: As part of the rewards program with the Staples More Card you’ll get 40% back in rewards for ink and toner and 30% back on business supplies. These can be applied as a statement credit. $50 back on your first purchase. Free next day delivery.
Startup Business Credit Cards: No Personal Guarantee Required
Will business card issuers approve a credit card with no personal guarantee requirements for your business startup?
Yes. You’ll need better than poor credit, and a good credit history. Even without a personal guarantee or security deposit, you can obtain a card. There won’t be an annual fee and your credit limit will increase as you purchase and pay.
In that sense, it’s not a credit card. It’s a charge card. You have to pay off the balance each month.
6. Brex 30 Card
- Annual Fees: $0
- APR: 0%
- Credit Needed: Good. Brex will look at your credit history and your business’s available cash.
- Important Notes: Brex 30 Card cash account is not approved for sole proprietors. You must be a C-Corp, S-Corp, or LLC (Can be a sole proprietor LLC). Rewards are 8x points for ride share apps and taxis, 5x points on travel, 4x points on restaurants, 3x points on Apple products and recurring software costs. When you use the card, Brex charges the merchant a small fee.
7. SVB Innovators Card
- Annual Fees: $0
- APR: 0%
- Credit Needed: Good
- Important Notes: With the SVB Innovators Card your credit line grows each time you pay the monthly bill in full. Business credit rewards program gives 2 points for every dollar, which can be used as a statement credit or can be used to purchase gift cards.
8.The Stripe Corporate Card
- Annual Fees: $0
- APR: 0%
- Credit Needed: Good.
- Important Notes: You don’t have to have a Stripe account where you receive payments, but if you do, that will be a factor for the Stripe Corporate Card approval and credit limits. You’ll get 2% cash back, and the introductory offer includes free 3 months of Shopify and a $150 credit for Google ads. You can use your Stripe card anywhere Visa cards are accepted.
Restrictions and Limitations of Cards Without Personal Guarantee
- Although there is no personal guarantee, there is a commercial guarantee. Your business assets can be seized if you default on payments.
- A sole proprietor can’t get small business credit cards without a personal guarantee.
- The initial credit limit may be restrictive and hobble small business finance goals.
- In many cases the balance must be paid in full in each billing cycle.
- Many charge a foreign transaction fee. Foreign transaction fees can be 3% and higher.
- Some rewards programs are attached to a particular store.
Are you personally liable for a business credit card?
Yes. If you don’t want to be personally liable, you need a card that specifically does not require a personal guarantee.
Image: Depositphotos
