Business Credit Cards with No Personal Guarantee: Best Options, How to Get One

If you're a business owner, you know how important it is to keep your personal and business finances separate. This is where business credit cards with no personal guarantee come in - they allow you to make purchases and pay bills without risking your personal assets.

These types of credit cards are often referred to as "unsecured" business credit cards, meaning you don't need to put up collateral or sign a personal guarantee to get approved. This can be a huge relief for business owners who want to keep their personal credit separate from their business credit.

Some business credit cards with no personal guarantee are designed specifically for new businesses or startups, while others are geared towards established businesses with good credit. For example, the Capital One Spark Business Credit Card is a popular option for new businesses, while the American Express Business Gold Card is geared towards established businesses with excellent credit.

To qualify for business credit cards with no personal guarantee, you'll need an established business and an Employer Identification Number. This is because personal guarantees help mitigate the risk that issuers take on when extending credit to your business, and about 20% of new businesses close within a year.

You'll also need to have a strong business profile, such as a high cash reserve or significant revenue. Large businesses and smaller companies with high cash reserves and significant revenue can often get a corporate credit card with no personal guarantee.

Large businesses can often get a business credit card with no personal guarantee in the form of a corporate credit card. This is because they have a strong cash flow or a large bank balance, which suggests to a lender that the business is likely able to pay back its credit card debt.

Smaller companies with high cash reserves and significant revenue can also qualify for a business credit card with no personal guarantee. However, if your business has a smaller bank balance, your options will be more limited, and you may need to consider cards affiliated with specific retailers.

About 20% of new businesses close within a year, and just 34.7% make it to their 10-year anniversary, according to data from the U.S. Bureau of Labor Statistics. This makes businesses a risky bet for credit card issuers, which is why personal guarantees are often required.

To qualify for business credit cards with no personal guarantee, you'll need an established business and an Employer Identification Number. You may also need to open a deposit account or link a bank account to the card, and keep a certain amount of money in the account to use the card.

A personal guarantee is a business owner's personal liability and responsibility to pay off a loan balance, typically taking effect when a company can't fulfill repayments due to cash flow issues or bankruptcy.

The business owner takes on the debt personally, making their personal assets available for seizure by the credit card issuer if the business defaults on payments.

If the business defaults, the lender can seize personal assets like real estate property, cars, investments, and other high-value assets to repay the debt.

This means your personal credit and business credit are used to qualify for a loan or credit card, making you personally responsible for repaying the loan if the business defaults.

There are two types of personal guarantees: unlimited and limited. An unlimited guarantee makes the business owner fully responsible for repaying the loan with their personal assets.

A limited guarantee applies to a company with multiple business owners, making each owner personally responsible for repayment up to a specified percentage.

A personal guarantee is typically necessary when a business has not yet built its own credit profile, as the issuer seeks assurance of repayment.

If you're in the process of establishing your credit, learn about business credit cards and how they can help you.

Here's a breakdown of the types of personal guarantees:

Business credit cards with no personal guarantee often have restrictions and limitations. Most require a strong business credit score.

Lower credit limits are common, especially for newer businesses with Stripe accounts. The credit limit will be based on your payment history and bank history.

Rewards programs and benefits may not be as robust as those offered by cards with a personal guarantee. This is a trade-off for not requiring a personal guarantee.

Some issuers have industry-specific eligibility requirements or require a certain minimum revenue level. This can affect your eligibility for a business credit card.

Interest rates can be higher for business credit cards without personal guarantees. This is because the lender is taking on more risk.

It's essential to check the specifics offered by your card before signing up.

If you're not interested in a traditional business credit card, there are alternative options available.

Some entrepreneurs and small business owners prefer to consider alternative financial tools.

A low-interest card with rewards and no annual fee can be a great choice for many businesses.

Businesses with specific needs may also find value in cards that offer cashback, discounts, or travel insurance.

If you're looking for alternatives to traditional business credit cards, there are several options to consider.

The Ramp Card is a charge card that offers cash-back rewards and card-level spending controls with no annual fee, but requires at least $25,000 in a business bank account to qualify.

The BILL Divvy Corporate Card is another alternative that doesn't require a personal guarantee and can be qualified for with just $20,000 in a business bank account.

For businesses in the transportation industry, the Shell Small Business Card is a great option, offering six cents of rebates per gallon of gasoline bought and a 15% discount at participating Jiffy Lube branches.

Stripe offers a Corporate Visa Credit Card to its members, which is a technology company that serves as an avenue for online payments.

Business owners can also consider using a corporate card with no personal guarantee required, such as the BILL Divvy Corporate Card, which includes spend management software.

The Shell Small Business Card is a great choice for companies working in transportation, offering rebates and discounts on gas and maintenance.

Ramp Corporate Card is another option that offers unlimited physical and virtual cards that can be monitored or locked in real time, with a flat 1.5% cash back on all purchases.

Charity Charge offers a charge card specifically designed for tax-exempt nonprofits with at least two to five years of operation and $100,000 or more in annual revenue.

This card provides automatic rebates on various services and products through Mastercard Easy Savings, no annual fee, Mastercard Zero Liability, ID Theft Protection, and dedicated customer support.

Nonprofits can qualify for the Charity Charge Nonprofit Business Card with at least $100,000 in annual revenue after two years of operation, or with at least $500,000 in annual revenue after one year.

Charity Charge is a social enterprise focused on equipping nonprofits with financial tools and resources to enhance their fundraising efforts and ensure their success.

The card features 24/7 customer support via phone or email, and discounts on services from vendors like Microsoft 365, QuickBooks, and TurboTax.

Nonprofits that don't meet the criteria for the Charity Charge Nonprofit Business Card can apply for a secured business credit card with the company.

The card requires the balance to be paid in full each month, as it is a charge card.

Transportation and Trucking is a vital part of our daily lives, and there are many alternatives and options available to reduce our reliance on traditional methods.

Did you know that electric vehicles can travel up to 300 miles on a single charge? This can significantly reduce greenhouse gas emissions and operating costs.

Ride-sharing services like Uber and Lyft are becoming increasingly popular, reducing the number of cars on the road and decreasing traffic congestion.

In the US, the average truck driver spends around 300 days per year on the road, highlighting the need for more efficient and comfortable transportation options.

Companies like Amazon and Walmart are investing heavily in electric and autonomous trucks, promising a more sustainable and efficient future for the industry.

The US Department of Transportation estimates that by 2025, 50% of all new vehicles sold will be electric or hybrid, a significant shift towards a more environmentally friendly transportation system.

Many cities are also implementing congestion pricing, which can reduce traffic congestion by up to 20%, making our roads safer and more efficient.

Business credit cards with no personal guarantee can be a double-edged sword. They offer businesses a way to access credit without putting their owners' personal assets at risk, but they also come with higher interest rates and fees.

Business credit cards with no personal guarantee often have higher interest rates, typically ranging from 15% to 25% APR, which can be a significant burden for small businesses.

To mitigate this risk, businesses should carefully review their credit card agreement and understand the terms and conditions before applying.

Business cards with no personal guarantee can be a bit restrictive. You'll typically need a registered business with strong annual revenue and a healthy bank balance, think $20,000 or more in a business checking account.

These cards are often corporate credit cards, and many are charge cards, meaning you must pay your balance in full each month. This can be a challenge for small businesses or those with irregular cash flow.

Business credit cards without a personal guarantee usually don't offer generous welcome bonuses or cash back or travel rewards. For example, The Blue Business Plus Credit Card from American Express has a NerdWallet rating of 4.4/5, but it's missing out on those perks.

On the other hand, if your personal credit is strong, consider signing a personal guarantee to increase your options. It will allow you to apply for a cash-back business credit card with greater rewards or a card with a 0% annual percentage rate period for some flexibility with your cash flow.

Here are some popular business credit cards that don't require a personal guarantee:

Minimizing liability is crucial when it comes to business credit cards. Opting for one without a personal guarantee will minimize your personal liability.

Paying bills on time and in full is essential to reduce liability. Regularly checking your balance can also help you stay on top of your account.

If you can't make the minimum payment, pausing charges can be a lifesaver. This feature can help prevent further debt accumulation.

Monitoring employee charges is also vital if they have cards linked to your account. Implementing spending limits on employee cards can help prevent unnecessary expenses.

If you're unable to qualify for a credit card that doesn't require a personal guarantee, there's no need to worry. Business lines of credit can be a good alternative.

A business line of credit works similarly to a credit card, with a set credit limit that borrowers can't exceed. You can draw any amount from it on an as-needed basis.

It's a revolving credit, so every time you pay what you owe, the credit available also goes up. This can be a huge help for businesses that need to manage cash flow.

Many lenders that offer business lines of credit work with business owners who have poor personal credit scores. This makes it a viable option to consider if you're struggling to qualify for other types of credit.

Business credit cards with no personal guarantee can be a game-changer for entrepreneurs and small business owners.

These cards offer a way to establish a separate credit profile for your business, which can help you build credit and get approved for future loans. However, it's essential to understand the terms and conditions of these cards, including the interest rates and fees associated with them.

A good example is the Capital One Spark Cash for Business card, which offers 2% cash back on all purchases and has no foreign transaction fees. Another option is the Brex Card, which offers 4% cash back on dining and 3% cash back on travel, and has no annual fee.

If you're not comfortable putting your personal assets on the line in case your business can't pay off the debt, then credit cards without a personal guarantee can be an excellent choice.

Cards without a personal guarantee usually come with higher rates and fees compared to those with personal guarantee requirements.

Ultimately, the answer depends on how comfortable you are with personal liability.

More than that, credit cards without a personal guarantee don't hold you personally liable for the debt, which means your personal assets are safe.

The higher rates and fees might be a trade-off worth considering, especially if you're not willing to risk your personal assets.

Having access to adequate working capital is crucial for any growing business, and business credit cards can be a helpful financial resource for companies that are looking to expand.

Business credit cards without a personal guarantee can be challenging to find, but there are companies that offer them, making it easier for new businesses to get the financing they need.

These cards often have limitations on how the business can use them, but they can still be a valuable tool for companies that are looking to grow.

Businesses can use these cards to cover expenses such as equipment purchases, employee salaries, and marketing campaigns, helping them to stay afloat and reach their goals.

The Brex Card is a popular choice among startups in the US, with 1 in 4 businesses opting for it. It offers a generous rewards program and welcome bonus with no personal guarantee required.

To apply for the Brex Card, you'll need to link it to a corporate bank account with at least $50,000 as a security deposit. Your credit limit will be determined by the amount in that account and your spending patterns.

The Sam's Club Business Mastercard is another option for businesses that meet certain criteria, including having more than two years in business, 10 employees, and at least $5 million in annual sales. This card offers rewards on gas, dining, and other Sam's Club purchases, but the rewards can only be redeemed at Sam's Club.

The Stripe Corporate Card is an invite-only card for businesses in the US, requiring only a Stripe account to apply. It has no fees and offers partner benefits from over three dozen partners, simplifying expense management and allowing custom spend controls.

The SVB Innovators Card is a charge card that comes with no annual or additional card fees, making it a good option for growing businesses. You'll earn 2 points per dollar spent on all purchases, which can be redeemed for statement credits.

Brex's corporate card offers a welcome bonus and a generous rewards structure, with industry-leading multipliers on various transactions. The card comes in two varieties: paid daily or paid monthly, with no option to carry a balance.

To qualify for monthly payments, you need professional investors and a business account balance of at least $50,000 ($1 million if you're self-funded). Brex cards require a linked Brex business account.

Brex cards offer 7x points on rideshare, 4x on Brex Travel, 3x on restaurants, 2x on software subscriptions, and 1x on all other transactions. You can also earn 3x Brex Rewards points on all eligible Apple purchases.

The Brex Card has a welcome bonus of 10,000 points when you spend $3,000 on a Brex Card within your first 3 months. Additional perks include deals and discounts at various vendors like Amazon Web Services, Apple, QuickBooks, and more.

Brex's rewards program and welcome bonus come with no personal guarantee. The corporate card is preferred by 1 in 4 startups in the US.

The Silicon Valley Bank Innovators Card is a great option for startups, offering a no personal guarantee requirement and no annual fee. It also doesn't charge an introductory or regular APR.

Business owners need a good personal credit to qualify for this card, which balances out the risk for the credit card issuer. This card is designed for growing businesses.

You'll earn a uniform 2x points for every dollar you spend, and you can claim your reward as statement credit, travel, gift cards, or merchandise. The only downside is that business owners must pay the full balance at the end of each month.

You'll need a business banking account with SVB to qualify for this card and earn the rewards. This card has no interest rates since it's a charge card.

The SVB Innovators Card has no annual or additional card fees, making it a cost-effective option for businesses. You'll earn 2 points per dollar spent on all purchases, which can be redeemed for statement credits.