If you're applying for a business credit card, your credit score still carries more weight than you might expect. Despite the “business” label, most traditional card issuers evaluate the individual, not the company.

That means your FICO score, not your company’s financials, is often the primary factor in determining approval. For many banks, the minimum threshold falls around 670. Founders below that line may face higher rates, lower credit limits, or outright denial, regardless of revenue or business performance.

This creates friction, especially for early-stage startups. Strong cash flow, reliable operations, or recent fundraising often aren’t enough to override a thin personal credit file. Even when businesses have begun building commercial credit, most issuers still default to legacy underwriting models.

Unlike traditional providers, Rho offers unsecured corporate cards that don’t require a personal credit check, a personal guarantee, or a security deposit. Approval is based on business performance, giving founders flexibility without tying up their personal credit.

In this guide, we’ll break down how credit scores impact traditional business card approvals and how modern options like Rho offer a more flexible path forward.

Why credit score requirements are a challenge for startups

Traditional credit models were not designed for high-growth startups. They were built to assess long-established businesses with years of repayment history, fixed assets, and steady cash flow. That creates friction when new companies try to access basic financial tools like credit cards.

Founders with minimal personal credit history or low credit utilization may appear risky to underwriters, even if their business is financially sound. This mismatch leads to frustrating outcomes:

• Startups are often denied business credit cards despite having a strong cash flow.
• Founders must sign personal guarantees, putting their credit score at risk.
• Teams are forced to use personal credit cards for business expenses.
• Credit limits are set artificially low, restricting purchasing power.

Many startup founders understandably want to protect their finances. But in most cases, they still end up being the primary borrower, even when applying for a business credit card. That makes it difficult to:

1. Separate business and personal liabilities.
2. Preserve personal credit scores for mortgages or future financing.
3. Build true business credit without exposure.

This is particularly frustrating for companies that already have reliable revenue, investor backing, and clean books. A startup with $500K in ARR or a recent seed round may still be funneled into a secured credit card simply because the founder’s FICO score is under 680.

The traditional system penalizes new businesses not because they are financially unstable, but because their credit data doesn’t fit legacy scoring models. That’s why newer providers are turning to alternative approval frameworks, evaluating business performance directly instead of relying on personal credit reports.

Business credit score vs personal credit score

Business credit and personal credit operate on different systems, but they often intersect when you apply for a credit card. Understanding how they compare can help you navigate approvals and manage risk more effectively.

A personal credit score is tied to your Social Security number and measures your creditworthiness as an individual. Most lenders use the FICO score, which ranges from 300 to 850, and is based on factors like:

• Payment history
• Credit utilization
• Length of credit history
• Types of credit used
• New credit inquiries

In contrast, a business credit score is tied to your company’s Employer Identification Number (EIN). It is assessed by commercial credit bureaus, such as Dun & Bradstreet, Experian, and Equifax. Scores typically range from 0 to 100 and are influenced by:

• On-time vendor payments
• Trade credit activity
• Outstanding balances
• Years in business
• Public records (e.g. liens, bankruptcies)

The total number of credit accounts you maintain (both open and closed) influences score models because it signals the depth of your borrowing history. Most traditional credit card issuers rely heavily on personal credit, especially if your business is new or has limited financial history. Even if you’ve begun building your business credit file, it may not carry enough weight to influence approval.

This overlap creates exposure. When you apply for a business credit card and the issuer checks your credit report, it can affect your credit score. Missed payments, maxed-out balances, or even high utilization on a business card may show up on your file, depending on how the card issuer reports data.

This is one reason many founders seek out corporate credit cards that don’t impact their credit at all. 

Credit score ranges and what they typically unlock

Not all credit scores open the same doors. Understanding the typical approval expectations associated with each credit score range can help founders set realistic expectations when applying for a business credit card and choose the right provider for their needs.

Here is how most issuers tend to interpret FICO score bands:

Excellent credit (800–850)

• Offers the broadest access to premium credit cards.
• Unlocks the lowest interest rates and highest credit limits.
• Often includes enhanced cashback programs, travel perks, and purchase protections.

Very good credit (740–799)

• Still qualifies for most business credit cards.
• Access to moderate-to-high credit limits.
• Terms often include lower APRs and fewer fees than average.

Good credit (670–739)

• Meets the minimum threshold for most unsecured business cards.
• Credit limits may be modest, especially for new businesses.
• Approval often requires additional documentation or a personal guarantee.

Fair credit (580–669)

• Considered borderline or subprime by many issuers.
• Typically eligible for secured credit cards or lower-tier offers.
• Often comes with higher interest rates and lower limits.

Bad credit (300–579)

• Denied by most traditional business card issuers.
• Approval is limited to secured cards or specialized products.
• Requires significant collateral and offers few rewards or features.

While these bands are commonly referenced, every issuer has its own approach. Some banks may deny applicants with scores under 700. Others might approve at lower thresholds if you can demonstrate strong business income or offer collateral.

However, the score alone doesn’t tell the full story. Your credit utilization, payment history, account age, and even the number of recent hard inquiries all affect your perceived creditworthiness.

Secured vs unsecured business credit cards

The difference between secured and unsecured business credit cards goes beyond how you access credit, it also affects how you manage risk, preserve cash, and scale responsibly.

Secured business credit cards

• Require a cash deposit or other form of collateral.
• Credit limits are usually tied directly to the deposit amount.
• Easier to qualify for, especially with fair or bad credit.
• Serve as a tool to build or rebuild business credit over time.

Unsecured business credit cards

• Offer a true line of credit with no collateral required.
• Approval is based on credit score, financial history, and perceived risk.
• Often come with higher limits and better rewards.
• It can impact your credit if a personal guarantee is required.

Secured cards are often positioned as a stepping stone for startups or small businesses that have limited credit history. While they may help build credit, they come with tradeoffs: tied-up capital, limited flexibility, and lower-tier perks.

Unsecured cards, on the other hand, offer more strategic value, but most traditional providers require a good or excellent credit score to qualify. Founders with lower scores are often pushed toward secured cards—tying up cash or accepting stricter terms even when their business is performing well.

Why founders choose business credit cards without a credit check

For many startups, using a business credit card that avoids a personal credit check isn’t just a convenience, it’s a way to reduce risk and protect long-term financial flexibility.

Traditional card issuers often require a minimum credit score, a personal guarantee, and a hard inquiry on your credit report. That means even business-related spending can affect your credit score, especially if the card issuer reports activity to consumer credit bureaus.

Here’s why many founders are moving away from credit-score-based approvals:

1 - To protect personal credit scores

When a business card reports to personal credit bureaus, missed payments or high utilization can impact your score, even if the charges come from employee activity or seasonal cash flow fluctuations.

Keeping your business and personal credit profiles separate helps preserve eligibility for personal loans, mortgages, and other financing.

2 - To avoid personal guarantees and founder liability

Most unsecured business credit cards require the founder to personally guarantee repayment. That turns business spending into a personal risk.

Avoiding personal guarantees allows founders to build their company without tying it to their individual credit history or assets.

3 - To preserve cash and avoid secured deposits

Founders with fair credit or thin files are often funneled toward secured credit cards, which require a cash deposit equal to the credit limit. That ties up capital that could be better spent on hiring, operations, or growth.

Cards that offer unsecured credit based on business performance help preserve liquidity, without the need for a perfect FICO score.

4 - To qualify based on business health, not personal credit

Startups with strong revenue or recent funding may still be denied by traditional lenders because of low or limited credit history. That’s the problem with credit models built for established businesses, not high-growth teams.

Alternative approval models that focus on revenue, cash flow, and account balances offer a more accurate and founder-friendly path to access.

A card that skips personal credit checks, personal guarantees, and security deposits gives founders more control and eliminates unnecessary risk. For founders navigating early-stage growth, managing multiple entities, or simply looking to protect their credit score, it’s a smarter approach to business finance.

Rho was designed with this in mind. We don’t check personal credit scores during onboarding, and we don’t report card activity to personal credit bureaus. That gives founders full visibility and control over business expenses, without jeopardizing their financial health.

To see how this compares to other providers, check out our guide to business credit cards that don’t report to personal credit.

When credit score still matters (and how to improve yours)

Even if your business card doesn’t rely on a personal credit check, there are still plenty of reasons to maintain a strong credit score. A healthy credit profile can impact everything from mortgage applications to future fundraising or business loans.

Here are a few scenarios where personal or business credit still plays a role:

• Applying for a small business loan or SBA-backed financing
• Leasing a new office or commercial space
• Seeking lines of credit or vendor terms
• Taking out a personal loan, mortgage, or car loan
• Negotiating lower interest rates or better insurance terms

If you want to improve your credit score while avoiding unnecessary exposure, here are a few best practices:

Make all payments on time

• Payment history is the single largest factor in most scoring models.
• Set up auto-pay to avoid missed deadlines.

Keep your credit utilization ratio low

• Aim to keep credit card balances below 30% of your available limit to protect utilization.
• Pay down high balances frequently, even mid-cycle if needed.

Avoid too many hard inquiries

• Each credit application triggers a hard pull that can temporarily reduce your score.
• Space out credit applications and avoid opening unnecessary accounts.

If your score is sub-prime, bringing on a co-signer with stronger credit can unlock better loan terms or bump you into an unsecured product sooner, but it also shares liability.

Maintain older accounts

• Credit age contributes to your score; don’t close old accounts unless necessary.

Diversify your credit mix

• Lenders look for a healthy mix of installment loans, revolving credit, and other credit types.
• One fast-track tactic is becoming an authorized user on a trusted family member’s low-utilization card, which can extend your credit history overnight.

Review your credit report regularly

• Check for errors, identity theft, or misreported data.
• Use resources like AnnualCreditReport.com to monitor all three major bureaus.

Different loan types still reference personal credit

• Even government-backed products like FHA loans, which cater to first-time home buyers, still require minimum FICO thresholds. 
• Understanding which type of loan you’ll pursue next helps you decide how aggressively to build credit today.

If you're not relying on your credit score to access a business card with Rho, maintaining a solid credit history gives you more leverage and optionality as your business and personal needs evolve.

How Rho approves cards without a credit check

For years, business credit cards operated under a narrow definition of eligibility. If you didn’t have a high personal credit score, a long repayment history, or the ability to post a deposit, you were forced into limited or restrictive options.

That model may have worked for legacy institutions, but it hasn’t worked for modern startups.

Today, founders have more options. You don’t need to accept high interest rates, low limits, or personal liability just to get your business off the ground. With the right provider, you can access unsecured credit, real-time spend controls, and automation tools without compromising your finances.

At Rho, we built our corporate card to reflect how startups operate:

• We don’t check personal credit scores.
• We don’t require personal guarantees.
• We don’t report card activity to consumer credit bureaus.
• We underwrite based on your business performance, not your FICO file.

That means you can scale your spending, streamline financial operations, and protect your credit score—all at the same time.

Want to qualify without the red tape? Get started with Rho.

FAQs about credit scores for businesses

What is a good credit score for a business credit card? 

A good credit score typically starts around 670, according to most FICO scoring models. Many traditional issuers require a score in this range or higher for unsecured business credit card approval.

Can I get a business credit card with bad credit? 

Yes, but your options may be limited. Most traditional cards will require fair or good credit. If your score is below 580, you may need to consider secured cards or modern corporate card providers that don’t rely on credit checks.

Does a business credit card affect my personal credit score? 

It can, depending on the issuer. If the card provider checks your personal credit or reports card activity to consumer bureaus, your score could be impacted by late payments or high balances.

Do business credit cards require a personal guarantee? 

Many traditional providers require a personal guarantee, especially for startups and small businesses. However, corporate card providers like Rho do not require a personal guarantee.

What is credit utilization and why does it matter? 

Credit utilization measures how much of your available credit you’re using. Keeping your credit utilization below 30% helps maintain or improve your credit score.

How can I check my credit report for free? 

You can check your credit report from all three major bureaus (Experian, Equifax, and TransUnion) at AnnualCreditReport.com.

What’s the difference between a secured and unsecured business credit card? 

Secured cards require a deposit, which serves as collateral. Unsecured cards extend a line of credit without requiring cash up front. Rho offers unsecured cards with no personal credit check.

Do credit card issuers use different credit scoring models? 

Yes. While FICO is the most common, some issuers may also use VantageScore or custom internal models. These models can weigh factors like payment history, new credit, credit mix, and more differently.

Do business credit cards help build credit? 

Yes, as long as the provider reports to commercial credit bureaus. Timely payments and responsible usage can help build your business’s credit file.

What credit bureaus track business credit scores? 

The main commercial credit bureaus are Dun & Bradstreet, Experian Business, and Equifax Business. Each uses its own scoring models and data sources.

Do startup founders need good personal credit to get approved for Rho? 

No. Rho does not check personal credit scores. Approval is based on your business’s financial performance, including cash flow, account history, and revenue.

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