The best prepaid business credit cards for 2022

The term prepaid business credit cards can be used to describe any credit card for business owners that requires prepaid funds to be used. Unlike most standard credit cards, these cards do not require a good or excellent credit score. This makes these cards useful for small business owners who have a limited credit history and those who have had significant credit problems.

Just like other business credit cards, prepaid business credit cards are ideal for paying business expenses and employee expenses. However, these cards will have spending limits based on how much you have prepaid.

How Do Prepaid Business Credit Cards Work?

There are two types of prepaid business credit cards. First, there are secure cards that require the payment of a refundable security deposit in order to open an account. After that, these cards work just like standard, unsecured cards, as you make regular purchases and have to make a minimum payment each month. When used responsibly, secured credit cards allow account holders to add to their positive credit history and improve their credit score. At the same time, secure credit cards offer a convenient and reliable payment method, just like any other credit card.

The other type of prepaid business credit card offers you the opportunity to deposit money, which is used to pay off your credit card. These newer types of prepaid business credit cards differ from secure credit cards in that when you make a purchase, the money you have on deposit is automatically used to pay the bill. These types of cards can also be a great way to build business credit, as these cards report your balance and payment history to the business credit bureau and not to the consumer’s. And like secured credit cards, these cards do not require a strong credit history and some do not even require checking your personal credit.

Keep in mind that prepaid business credit cards are not business loans. Therefore, if you need business financing, it is best to look elsewhere.

The best prepaid business credit cards

Divvy Credit Builder for businesses

The Divvy Credit Builder for businesses is a credit card that does not require verification of your personal credit and one that automatically debits your account to pay the charges. But Divvy is not just a prepaid business credit card, it is also a business expense and expense management platform. The company provides funds for startups and small businesses as well as tools for managing budgets and expense reports. The Divvy Credit Builder for businesses is part of the Visa payment network and can be used for payment wherever Visa credit cards are accepted.

The Divvy Credit Builder for businesses The program generates business credit and does not require a personal credit history or personal repayment guarantee. Instead, businesses pre-finance their credit line and can then spend up to that amount. Divvy Credit Builder for businesses The accounts can be pre-financed by bank transfer or ACH transfer from the current bank account or the bank account of the company. Alternatively, you can fund it directly through the payment gateway on your Divvy Dashboard (this may take up to 4 days to complete). Divvy offers virtual cards and free employee cards.

There is $ 0 annual fee for this card. All charges incurred on this billing card are due and payable upon receipt of your periodic statement.

Citi® Secured Mastercard®

While the Citi® Secured Mastercard® it is not a small business card, it is still a valuable secure card that you can use to make business purchases and build your personal credit. This card, which is marketed to consumers, is available to new applicants with almost any credit profile. However, you must provide a refundable deposit of at least $ 200 to open your account.

You can also submit a deposit of up to $ 2,500 and the amount you submit becomes your credit limit. Then this card works like any other credit card. In fact, it does not even say “secured” on the card, so retailers will not know that it is not a standard credit card. You can use this card to make purchases wherever Mastercard is accepted. This card will list your balance and payment details at major consumer credit bureaus. With a timely payment record, you will build your positive credit history and increase your credit score. This is a relatively simple card that offers no cash back rewards and $ 0 annual subscription. This card has one 3% supply of foreign trade imposed on international trade.

How to qualify for a prepaid business credit card

Fortunately, you do not have to do much to qualify for a prepaid business card. These cards are open to almost everyone, regardless of your credit problems or credit history. In most cases, you will just need to prove your identity and not have a pending bankruptcy or foreclosure. And while you may have bad or bad credit, you should not have accounts that are currently overdue or defaulted.

What you need to apply for a prepaid business credit card

Initially, you will need to provide your personal information, such as your address, date of birth and Social Security Number (SSN) or Employer Identification Number (EIN). You will also need to provide other information, such as your company name, job title, telephone number, and number of employees. The application can also ask you if you are set up and what is your position in the company. For most small businesses, the applicant’s position will be the owner. You may also be asked to provide projected revenue, expenses and profits for your business. Some prepaid card issuers also require you to link your card to a demo account.

Alternatives to prepaid business credit cards

There are many alternatives to prepaid business credit cards. First, you could look at a professional credit card for fair credit. There are many cards available for those who have had credit problems but do not have bad credit. These cards will have higher standard interest rates than cards designed for people with good or excellent credit and will offer mediocre rewards such as cash back. But these are just some of the goal setting shareware that you can use to create your own credit card. And as your personal credit improves, you could qualify for a business credit card that does not require prepayment.

Another alternative is to use a personal card for business purposes. These cards will not offer business features such as expense tracking, reporting and Quickbooks integration. But there is a wide variety of subprime and secure cards available for personal use. Some even include benefits such as shopping protection and travel insurance. However, you should expect that the subprime cards available to those with credit problems will also have high interest rates and charges.

Then there are other types of prepaid cards, including prepaid business debit cards. These cards do not require a personal credit history or even a credit check. And with these cards, there is no way it can help or hurt your credit score. Just deposit money and make purchases up to the amount of these funds. This is similar to the debit cards offered by most checking and savings accounts. Like these cards issued to bank account holders, many prepaid debit cards can be used at ATMs. And because these cards can be reloaded, you can add money as needed. Many even accept money through direct deposit from your bank account. The downside is that many prepaid debit cards have charges such as monthly charges, ATM charges and possibly even transaction charges.

Conclusion

Just because you do not have good or excellent credit, does not mean that you can not use credit card for your business. In fact, there has never been a better time to consider the various prepaid credit card offers for business and personal use. By finding the product that best suits your needs, you can be sure that your business has access to a secure and convenient payment method and, possibly, a payment method that can help you build your business and personal credit at the same time.

This article was originally written on March 31, 2022 and updated on April 4, 2022.

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