Business Credit Cards Without a Personal Guarantee

Cody Cromwell
Written by
Last update:

Brex Card for Startups: Overall Best Business Credit Card Without a Personal Guarantee

  • The ideal card for everyone except startup founders.
  • Without a personal guarantee in the form of a cosigner or co-signer, this card is well suited to startups and small businesses, which are the intended target audience.
  • With its generous welcome rewards, wide range of features, and low fees, this card is ideal for businesses that can reap the benefits of a point earning credit card while paying low or even no fees.
  • If you are a startup founder, this card may be a stretch for you, since it only comes with 1 cent of credit limit. Points are worth even less for startups, since applying for your business credit card account online requires a paid registry.

Shell Small Business Card: Best for Rebates on Nationwide Gas Purchases

Sam’s Club Business Credit Card: Best for Earning Rewards on Sam’s Club Expenses

Most rewards credit cards are personal credit cards so they tend to be labeled as a –business credit card” as well. This can be because they offer businesses benefits like cost-free access to a concierge, bonus points at certain companies or saving on the entry fee to trade shows.

With that said, Sam’s Club has its own version of the type of credit card we’ve discussed in this post. The Sam’s Club Business Credit Card is officially recognized as a business credit card and the perks that come with it are worth checking out if you shop at Sam’s Club a lot.

The Sam’s Club Business Credit Card isn’t your typical credit card.

Since it’s a store credit card, you’ll most likely have to meet a couple of hurdles before it can be issued to you. But if you’re actually a Sam’s Club member, then the process shouldn’t take too long.

The hurdles are as follows:

You have to have a Sam’s Club membership and you must be the primary card holder on your Sam’s Club account.

Bento for Business: Best for Managing Expenses With an Easy Approval Card

Bento for Business is a business credit card that gives you the power to make your own financial decisions. Each card comes with a dedicated binder for recording your business expenses.

While the initial cost of having a Bento for Business card can seem like a hassle, you should know that it’s the most easy-to-use card on this list.

The power of the Bento for Business card comes from the B4B binder system. In short, this system allows you to easily keep track of your business year-end expenses. Instead of having to rummage through numerous papers, the binder allows you to consolidate all your expenses into one handy place.

Besides the opportunity to record your expenses, the Bento for Business card is also a good option for a quick get-a-way. You have the luxury of racking up charges on your card, then using them for anything else without paying any interest fees.

No Personal Guarantee Business Credit Cards Costs

Types of No-guarantee Business Cards

A business credit card doesn’t require you to sign a personal guarantee. The creditor takes on the responsibility of being repaid in the event the cardholder incurs any losses.

The person issuing the credit card is the owner or the authorized user and has the same privileges as they would with a personal credit card. When you apply for a business credit card, your business answers personal questions.

Credit limits are based on the types of business you do or the business needed to use the card. Business cards can be reports and there are no hard inquiries on the report until you’re ready to use the business credit card.

If you own a business but don’t have the money to open a business credit card, there are other ways to take the chance out of applying for a business card. Your creditors will give you a chance to prove you’re an entrepreneur even if you don’t have the money to open a business credit card. You can use the personalized application form to prove you�ve been busy with a project, such as applying for a business credit card.

Corporate Credit Card

A business credit card can help a business expand beyond just a single merchant account.

Like personal credit cards, business credit cards range from revolving credit cards to business charge cards and corporate payment cards. To further distinguish between the different types of business credit cards, companies apply the type of business to which they will be applying the credit card. For example, a business paying with Visa wouldn’t need a Mastercard business credit card since Mastercard is a personal credit card.

Merchant Credit Cards

Merchant credit cards can be applied directly to a merchant’s purchases. In other words, the credit card can be used like a normal credit card at the merchant’s establishment. Merchants that need a credit card of their own often have merchant service agreements that require an eligible credit card to be provided to them by the merchant service company. Depending on the issuing bank, some types of merchant credit cards are eligible for a reduced merchant account rate, exclusions from monthly fees, or a fee waiver.

Merchant credit cards are primarily used by small businesses and sole proprietorships.

Business Charge Cards

Business charge cards may be secured or unsecured.

Corporate Gas Card

There’s nothing better than a business gas card to boost a small upstart’s business. Whether you’re running a solo business or a business with employees, it’s quite tough without a gas card to get you from business to the next.

The gas card is a standard feature of even the most basic business credit cards. It’s like your basic travel card.

You can use these cards for gasoline, diesel fuel, fuel oil, jet fuel, or any other common retail or industrial fuel type.

Let me quickly give you an idea of how it works. – Simply swipe the card at the pump, and presto, you get the fuel. You’ll only need to pay the gas company the price equivalent to the fuel you pumped.

The corporate gas cards can also be used to pay for the shipping services in international non-taxable trade, while you are buying your goods from another company. If you are buying goods from an overseas country, you can also use this card to pay for goods purchased from US companies. If you are buying goods from a foreign country, you may be required to pay VAT, but you can prepay that by using the card and get it back as a refund from the remitter.

Business Prepaid Card

Vs. Visa / MasterCard

If you haven't yet gone through the application process for a business credit card, there are a couple of things you should know when considering the pros and cons of a prepaid business card vs a standard credit card. A business credit card differs from a standard credit card in that you are directly borrowing from the card issuer instead of taking out a loan or a line of credit from a bank. This means you are much more limited in terms of credit card rewards and benefits as well as maximum annual fees.

The best business credit cards will almost certainly require you to qualify by putting down a much larger down payment (up to 50%) than what you would be required to put down for a standard credit card. A fair amount of credit will also need to be paid off on your own as well before you begin collecting rewards from the cards. In some cases, you may even need to pay a yearly fee as well as a monthly maintenance fee to keep your card active.

There is in fact, a type of business credit card that does not require you to put any money down initially, but it is particularly rare and may only be available online or in small businesses that don't require a large credit line. A few popular examples of prepaid business cards are offered by Discover, Citibank, and Capital One.

Other Ways to Limit Liability

Bottom Line

Debt financing is so common in our world today that most people take it for granted. If you’re trying to buy a house, start a business or get a franchise, most banks and lenders will ask you to put up something of value (such as a house or a business) as a guarantee against any loans you might take out. But there are options available to you that don’t require you to put up anything of real value.

When I was in college, I got my first business credit card. I didn’t have any money to put down on a house, and I didn’t want a home equity loan or a conventional business loan. The credit card company asked me to simply hand over a letter of guarantee by my father promising they could come after me if I didn’t pay them back. I’d never written a guarantee like that before, but they promised that if I was in financial trouble they would have the power to garnish my wages from my job.

Think about how many people get credit cards or lines of credit without giving anything up as security. It’s almost a taboo in our society, but it’s important to remember that the banks are not charities; they’re businesses that want to make a profit.