Small-business owners with only fair credit (FICO scores between 630 and 689) don’t have plentiful choices when searching for a business credit card. Perk-heavier card options, with their massive sign-up bonuses and typically massive annual fees to match, are tailored toward applicants with good or excellent credit scores.
BBVA Compass Visa® Business Rewards Credit Card is an exception. It features benefits such as rewards and free employee cards, all for an annual fee of $0.
Still, there are some major blockers to qualifying for this card that may have you searching for alternatives.
Here are five helpful facts about the BBVA Compass Visa® Business Rewards Credit Card.
1. Eligibility is limited
The BBVA Compass Visa® Business Rewards Credit Card is available only to applicants in the following states:
- New Mexico.
If you live outside of these areas, consider a small-business credit card that’s available nationwide, like the Capital One® Spark® Classic for Business. It’s also an option for applicants with fair credit.
2. The point-earning potential is high …
This card has a feature you don’t often see with cards for fair credit: a sign-up bonus, which is available if you open a new BBVA Compass Visa® Business Rewards Credit Card by Dec. 31, 2019: Earn 20,000 CompassPoints when you make $3,000 in Qualifying Purchases in the first 90 days.
On top of that, you’ll earn extra points in business-friendly spending categories. Earn 3 points per $1 spent at office supply stores, 2 points per $1 spent at gas stations and restaurants, and 1 point per $1 on all other purchases. Keep in mind that points expire three years after they are earned, so you’re not going to want to hold onto them for too long.
3. … but redemption options are limited
You can redeem points for statement credit or gift cards at a value of 1 cent per point. You must redeem at least 2,500 points.
Other business credit cards offer straight-up cash back, travel rewards or even merchandise redemption, but many of them require good to excellent credit scores.
4. The ongoing interest rate is low compared to similar cards
One typical hallmark of cards for fair credit is that they tend to have a higher ongoing interest rate. That’s because cardholders who are newer to credit present a higher risk to credit card issuers. It’s not uncommon to see APRs start in the 20%-25% range.
But the BBVA Compass Visa® Business Rewards Credit Card offers an ongoing range that starts much lower for those who can qualify for it. Plus, it features a decent intro APR offer: 0% or 3.99% introductory APR on balance transfers requested within 90 days of account open date for one year, based on your creditworthiness., and then the ongoing APR of 11.49% – 25.49% Variable.
5. The intro APR for balance transfers can vary
Speaking of the card’s intro APR offer, note that the rate you’ll qualify for when it comes to balance transfers will depend on your credit history and credit score. That means you’re not guaranteed a window of time to pay down debt interest-free. A 3.99% APR is still low compared to typical credit card interest rates, but the card also charges a 4% balance transfer fee.