Brex Card for Startups: No Personal Guarantee, If Your Business Qualifies

Early-stage companies with high cash flow may appreciate this corporate card's potentially lucrative rewards, discounts and lack of fees.

Robin Saks FrankelApril 29, 2021
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Our Take

4.4

NerdWallet rating 

The bottom line: Ideal for a specific profile: owners who may have a thin credit history but a well-funded startup. If you're seeking a big sign-up bonus or the ability to revolve a balance, look elsewhere.

Brex

on Brex's website

on Brex's website

Annual Fee

$0

Regular APR

N/A

Intro APR

N/A

Recommended Credit Score

Quick Facts

Pros & Cons

Pros

  • Qualify with limited / bad credit

  • No annual fee

  • No foreign transaction fee

Cons

  • No 0% intro APR

Alternate Pick: 0% intro APR on purchases

American Express® Blue Business Cash Card
NerdWallet rating 

American Express Blue Business Cash™ Card

Up to 2% cash back

Finance a big purchase over time with an introductory APR of 0% intro APR on Purchases for 12 months, and then the ongoing APR of 13.24% - 19.24% Variable APR. The card earns 2% cash back on up to $50,000 a year in eligible purchases and 1% afterward. The annual fee is $0.

Read our review

Compare to Other Cards

NerdWallet rating 
NerdWallet rating 
NerdWallet rating 
Annual Fee

$0

Annual Fee

$95

Annual Fee

$295

Regular APR

N/A

Regular APR

15.99% - 20.99% Variable APR

Regular APR

14.24% - 22.24% Variable APR

Rates & Fees

Intro APR

N/A

Intro APR

N/A

Intro APR

N/A

Recommended Credit Score
Recommended Credit Score
Recommended Credit Score

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Full Review

The Brex Card boasts unique features for a card in its class. Unlike most business credit cards, it does not require applicants to personally guarantee the debt on the card, meaning the applicant's personal assets won't be at risk if the business fails.

Also, instead of considering personal credit scores, Brex determines creditworthiness by evaluating the business itself: its cash balance, spending patterns and investors. This can be ideal for the right kind of entrepreneur — namely, a founder of an early-stage startup who may have a thin or nonexistent credit file. That may include a recent graduate or someone new to the U.S.

But it's not a slam-dunk for everyone. Interested companies must be willing to provide access to their bank information, and smaller businesses that don't have the kind of cash flow Brex requires may not qualify. (At a minimum, you'll need $50,000 in the bank.) Plus, since it's a charge card, a company that's looking to revolve a balance wouldn't be a fit. And while the Brex Card does earn rewards, you'll have to jump through some hoops to earn its highest rates.

Brex Card: Key features

Card type: Small business.

Annual fee: $0.

Sign-up bonus: Get 30,000 points after spending $3,500, or 50,000 points after spending $9,000 in the first 30 days.

Rewards: The card's baseline rate is 1 point per dollar spent. But if you make the Brex Card your only company card, you'll earn elevated and unlimited rewards through its Exclusive rewards program at the following rates:

  • 7 points per dollar spent on rideshares and taxis.

  • 4 points per dollar on travel booked through the Brex portal.

  • 3 points per dollar spent on restaurants and on Apple products.

  • 2 points per dollar on recurring software expenses.

  • 1 point per dollar on all other purchases.

Brex's website notes it will determine eligibility for this Exclusive rewards program by using information provided by the customer and via third-party providers authorized by the customer to give Brex bank account information.

Rewards can be redeemed at a value of 1 cent per point as a statement credit against a transaction made on the card, or to pay for flights, hotels or Airbnbs through Brex's travel portal.

You can also transfer points to one of Brex's multiple airline partners. Members of the Brex Exclusive rewards program enjoy a 1:1 transfer ratio. (For non-Exclusive members, the ratio will be 1.5:1 — meaning 1.5 Brex rewards points will be needed for 1 airline mile).

APR: N/A

Foreign transaction fee: None.

Other benefits:

  • Deals and discounts at various vendors that startups may find appealing, including Amazon Web Services, Google Ads, WeWork, Indeed, Zoom and more.

  • Once approved, get immediate access to a virtual card. Your physical card will be sent to you within three to five business days.

  • Your first five cards are included. ($5 per user per month for additional cards).

Highlights of the Brex Card

No personal guarantee or Social Security number required

With the Brex Card, there's no founder liability should the business fail. There's also no need to provide a Social Security number or have a hard pull on your credit file. Brex eschews traditional underwriting methods in favor of a focus on funding and cash flow. Businesses instead must provide an employer identification number and access to bank information.

Light on fees

The annual fee is $0, and there are no foreign transaction fees. There are also no interest charges, as the Brex Card is a charge card, which means the balance has to be paid in full every 30 days.

Your credit limit can rise with your company's cash flow 

The amount of credit you're initially given on the Brex Card isn't static. Brex's method of evaluating potential cardholders uses factors including cash flow and spending patterns to offer dynamic credit limits that rise along with a business's repayment abilities. (Of course, the reverse of this is also true. More on that below.)

Drawbacks of the Brex Card

You need a minimum of $50,000 in the bank, maybe more

If your company has professional investors and you're willing to connect your bank to Brex, you can qualify for the Brex Card by maintaining a bank account balance of $50,000 at all times. If you have investors but don't connect your bank to Brex, you'll need a balance of $100,000 at all times, which is also the threshold that self-funded businesses must meet.

Sole proprietorships or mom-and-pop shops without that kind of cash on hand may be out of luck.

Your credit limit can fall with your company's cash flow

Brex's credit model updates in real time, so if a company depletes most of its cash in a given month, the credit limit on the card will be reduced until there's more cash in the bank account.

No 0% intro APR; automatic debiting 

Since the Brex Card is a charge card, not a credit card, the balance is due in full each month. You won't owe interest, but you also won't be able to carry debt from one month to the next or finance a large purchase over time. Your account will be automatically debited for the balance, so you'll need to have sufficient resources on hand. If you're looking to revolve a balance and get a break on interest charges, a better choice might be the American Express Blue Business Cash™ Card, which earns cash-back rewards and offers an introductory 0% intro APR on Purchases for 12 months, and then the ongoing APR of 13.24% - 19.24% Variable APR. Terms apply (see rates and fees). The annual fee is $0.

Complex rewards structure

Bonus-category tracking isn't for everyone, and if you're not ready to commit solely to using the Brex Card so that you can earn the highest rates, a flat-rate rewards card like the Capital One Spark Cash Select for Business can be more palatable. With it, every purchase earns a straightforward 1.5% cash back. It also offers a sign-up bonus.

Rewards that may not fit your spending

If your business spending doesn't align with the Brex Card elevated earning categories, consider a different option, like the Ink Business Cash® Credit Card. It earns 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year and 2% cash back on the first $25,000 spent each account anniversary year in combined purchases at gas stations and restaurants. All other spending earns 1 point per dollar. It comes with a great sign-up offer, too.

Limited travel perks

The Brex Card offers rewards on travel and even allows you to transfer those earnings to several airline partners. But it lacks the flashy benefits that some premium travel credit cards offer. If it's travel perks you're seeking, consider an airline card like the Delta SkyMiles® Gold Business American Express Card. It earns 2 miles per dollar spent directly with Delta, 2 miles per dollar at restaurants, 2 miles per dollar on U.S. shipping purchases and on U.S. advertising in select media and 1 mile per dollar spent on all other purchases. Terms apply (see rates and fees). With this card, your first checked bag is free for you and up to eight others on your reservation. That could be worth far more than the annual fee of $0 intro for the first year, then $99. Plus, you'll get priority boarding, and if you spend $10,000 or more in a calendar year, you'll receive a $100 credit toward a future Delta flight. Terms apply.

To compare more options, visit NerdWallet's roundup of top credit cards.

Should you get the Brex Card?

For someone unable or unwilling to have a line of business credit in their name, there are few no-annual-fee corporate card options that offer the kind of benefits that the Brex Card has.

But the card isn't right for — or available to — every type of business owner. See our roundup of best business credit cards for more potential options.

To view rates and fees of the American Express Blue Business Cash™ Card, see this page. To view rates and fees of the Delta SkyMiles® Gold Business American Express Card, see this page.