How to Get a Business Credit Card From a Credit Union With Bad Personal Credit

(April 2024)

How to Get a Business Credit Card From a Credit Union With Bad Personal Credit

In This Article

Getting a business credit card from a credit union with bad personal credit is totally possible as long as you follow the specific steps this article covers.

Whether you need an alternative source of liquidity to take care of unexpected business expenses or need to build business credit, a business credit card—whether it is from a credit union or big national bank—can provide the financing you need to keep your business afloat.

To get a business credit card from a credit union with a poor FICO score:

  1. Seek Credit Unions That Are Friendly To Bad-Credit Business Applicants
  2. Zero In On One Credit Union
  3. Apply For Membership (Both Personal And Business)
  4. Establish A Relationship With The Credit Union
  5. Familiarize Yourself With The Credit Union’s Business Credit Card Requirements
  6. Check Your FICO Score And Improve It Substantially
  7. Submit A Business Plan To The Credit Union
  8. Prepare Financial Statements For Your Business
  9. Gather Your Paperwork 
  10. Apply

Sounds a lot? It’s really not. Let’s get started.

1. Seek Credit Unions That Are Friendly To Bad-Credit Business Applicants

That’s correct, seek credit unions that are friendly to bad-credit business applicants. This is your first step to owning a business credit card with credit. Look out for credit unions whose credit card requirements you meet. 

Most business credit cards for bad credit—when used properly—can help improve your business credit score and offer rewards compared to regular credit cards. Some of these cards include: 

  • Navy Federal Credit Union Business Rewards
  • RBFCU Business Select Mastercard
  • Affinity Credit Union Business First Visa
  • Connexus Credit Union Visa Business Cash Card
  • Interra Credit Union Business Rewards Plus

2. Zero In On One Credit Union

To apply for a business credit card from a credit union with poor personal credit, zero in on one credit union. Once you find a credit union(s) that offers business credit cards to bad credit business applicants, fill out its application form.

Some credit unions you can look out for include:

  • Navy Federal Credit Union
  • Digital Federal Credit Union
  • America First Credit Union

You see, credit unions have rules and regulations. When you apply to more than one credit union, you slow your approval process for the business card you seek. Hence the need to focus on one credit union and apply for a business card.

3. Apply For Membership (Both Personal And Business)

Next, to apply for a business credit card with a credit score that’s not up to par, apply for membership at a credit union. You cannot apply for a credit card from a credit union—personal or business credit card—without first becoming a member.

You can apply for membership through;

  • Your community
  • Family Members
  • Job
  • Religious affiliation or donations to a charity the credit union sponsors

With credit unions, you must have something in common with fellow members to qualify for membership. Once you qualify, deposit about $5 or $10 at most—depending on your credit union—to secure your membership.

4. Establish A Relationship With The Credit Union

To apply for a business credit card from a credit union with bad personal credit, establish a relationship with the credit union. By opening deposit accounts such as checking accounts, savings accounts, CDs, IRA’s, etc.

You can open either online or in person. As with opening other financial accounts, you need to provide details including your address, valid means of identification, SSN, details about the business and reason why you’d want to become a member.

5. Familiarize Yourself With The Credit Union's Business Credit Card Requirements

Once you settle on a credit union business credit card, familiarize yourself with your union’s card requirement. From the business plan, financial statements, EIN, and ID. Understand the union’s requirements to qualify for the business credit card you seek.

6. Check Your FICO Score And Improve It Substantially

Once you familiarize yourself with the union’s card requirement, check your FICO score and improve it substantially. Ideally, getting a business credit card becomes easier when you have a good FICO score. 

Plus, good FICO credit positively impacts your business credit, which your lender considers before approving a business credit card. How do you build your FICO score?

  • Pay Your Bills on Time

To build your credit, pay your bills on time. Doing this is a surefire approach to building your payment history, making it easy to get a business credit card for your business.

  • Check Your Credit Report Regularly

Checking your credit reports often helps you maintain an intact—accurate and up-to-date—credit report. Conduct regular checks to fish-out errors or derogatory items in your report.

Check for identity errors and account status discrepancies, where your account reports closed instead of open, and vice versa. The law allows you to review your credit report for free through AnnualCreditReport.com.

Once you notice any derogatory item or error in your report, follow up with the errors and get it fixed as soon as possible. To fix it, visit the credit bureau to dispute whatever error there is on your credit report.

7. Submit A Business Plan To The Credit Union

To get your business credit card approved, submit your business plan to the credit union. Your business plan shows your card issuer that the business is a good fit for a business credit card.

What you should include in the business plan

Here are a few things you should include in the business plan:

  • An executive summary telling the credit union what your business is about
  • Market analysis
  • Products and services you offer
  • Financial projections

8. Prepare Financial Statements For Your Business

To own a business credit card with a credit score that’s below par, prepare financial statements for your business. Your financial statements are an important part of your business plan. A well-written financial statement can help you secure the business credit card you seek.

Here are the four main financial statements that a credit union—or any financial institution, in general—wants to see before deciding on a business loan or credit card application:

  • Balance sheet
  • Income statement
  • Statement of cash flows
  • Statement of owners’ equity

9. Gather Your Paperwork

To apply for a business loan or credit card from a credit union with bad personal credit, gather your paperwork. For your credit union to take you seriously, you need to have your:

  • Government-issued ID
  • EIN/Business Number
  • Business plan
  • Financial statements
  • Address
  • Contact number

10. Apply

Once your paperwork is intact, apply. To get your business credit card from a credit union with poor credit approved in no time, you need to apply. You can apply either through a call, online, in-person or via email.

Also, note that the application process for a business credit card from a credit union may differ, depending on your credit union and the means you applied through.

Conclusion

If you desire to get a business credit card from a credit union with poor credit, seek credit unions that are friendly to bad credit business applicants. Next, zero in on one credit union and apply for membership. 

Establish a relationship with the credit union and familiarize yourself with the business credit card requirements. Next, check your FICO score and improve it accordingly. Submit a business plan, prepare your financial statements, gather your paperwork, and apply.

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