The best secured business credit cards allow owners with credit scores below 579 to build credit without paying high fees. They charge APRs of 20% or less and offer rewards of 1% or more. Since your credit limit is tied to a security deposit, we looked for cards that allow deposits up to $100,000.
If you have a credit score of at least 580, you may qualify for an unsecured credit card that offers lower rates and better rewards. The best small business credit cards for fair credit allow owners to build both personal and business credit along with earning rewards. These cards are a great tool for owners looking to build their credit and qualify for one of the best business credit cards later.
Compare Business Credit Cards for Fair Credit
Top 6 Secured Business Credit Cards December 2019
Card | Best For |
|---|---|
(Best overall) Businesses that want a secured card with the lowest fees | |
Firms in the Sunbelt region that crave the best rewards | |
Companies in parts of the Midwest seeking credit limits up to $100,000 | |
Business owners looking for an introductory bonus | |
Firms seeking credit limits above their security deposit | |
Companies that want to control spending with employee cards |
What Is a Secured Credit Card?
A secured business credit card is best for small business owners with personal credit scores below 579. Secured business credit cards can help business owners improve both their personal and business credit scores through responsible use of a line of credit. The credit line is often equal to a cash deposit held in a collateral account.
As an alternative, business owners may consider a prepaid debit card, which doesn’t require a credit check. Prepaid debit cards allow owners to manage employee spending, but, unlike secured business credit cards, you won’t be able to build your personal and business credit because prepaid cards aren’t reported to credit bureaus.
How a Secured Business Credit Card Works
The credit line on a secured business credit card may be as low as several hundred dollars and as high as $100,000, as determined by a cash deposit you make into a collateral account. As you use your card to make purchases, your available credit will decline. You can replenish your credit line by paying off all or part of your monthly bill. Timely payments are key to improving your credit score, which may allow you to qualify for an unsecured business credit card.
Recent changes to the best secured business credit card rankings are:
The Best Secured Business Credit Cards Cut APRs
On September 18th, 2019 the Federal Reserve cut its benchmark rate by 0.25%, for the second time this year. Changes in the prime rate affect credit cards because it’s included in the APR. As a result of this cut, Wells Fargo, BBVA, and Discover cut their APRs. The remaining banks will likely reduce their APRs as well. These were slight changes that did not impact our card rankings.
Bento for Business Launches Bento Pay for Electronic Payments
In August 2019, Bento for Business announced the launch of its new payment system available to Bento users. Bento Pay allows businesses to transfer funds electronically by using only an email address. Owners also can receive funds by connecting their email address to their bank account for easy deposit.
How We Evaluated the Best Secured Business Credit Cards
We looked at more than a dozen business secured credit cards and personal secured credit cards. Most aren’t worth recommending because they charge excessive fees—including setup and credit line increase fees. We looked for cards that offer users a relatively inexpensive way to improve their credit and eventually graduate to an unsecured credit card.
After eliminating from consideration secured cards that charge excessive fees, we considered the following criteria:
- Fees: The monthly and annual cost to own a secured business secured credit card; the cards on our list charge annual fees of $40 or less, and several cards charge no annual fee.
- APR: The interest rate a card charges you if you don’t pay off your bill in full each month; the best secured business credit cards charge ongoing APRs as low as 16.90%.
- Security deposit: The minimum and maximum amounts you can deposit to establish your credit line; we found cards that allow deposits up to $110,000.
- Rewards: The points or cash back you earn by using your business secured credit card; the best business secured credit cards pay up to three points per dollar spent on certain categories.
The best business secured credit cards also report your spending and payment history to personal and business credit bureaus, which could help improve your credit score. Improving your credit should be your top priority in opening a secured credit card. If your credit report contains multiple errors that are hurting your credit score, consider hiring a credit repair company.
Based on the features business owners with poor or limited credit should look for in secured business credit card offers, we rank the Wells Fargo Business Secured Card as the overall best secured business credit card. The Wells Fargo card offers a low 16.90% APR and a high credit limit of up to $25,000 compared to other business secured cards.
Wells Fargo Business Secured Card: Overall Best Secured Business Credit Card
The Wells Fargo Business Secured Card is the only secured business credit card that is available nationwide. It’s best for owners who want to build credit because it charges a low $25 annual fee per card and an ongoing APR of 16.90%, well lower than other options. Businesses can grab a credit limit of up to $25,000 and earn 1.5% cash back on all purchases.
Wells Fargo Business Secured Card Costs
Financing costs and fees on the Wells Fargo Business Secured Card include:
- Credit line: Deposit $500 to $25,000 in a collateral account, which equals the amount of your credit line
- APR: Ongoing APR is 16.90%, which adjusts with the prime rate
- Late fee: $25 on balances less than $100; $39 on balances greater than $100; and $50 if your account is delinquent two or more times in the past 12 billing cycles
- Foreign transaction fee: None
- Annual fee: $25 per card on up to 10 cards maximum
- Penalty APR: None
The APR on the Wells Fargo Business Secured Card is the cheapest among secured credit cards on this list and well below some of the worst secured cards, which charge 35% APR or more.
Wells Fargo Business Secured Card Rewards
You can choose to receive rewards from the Wells Fargo Secured Card in one of two ways:
- Cash back: Earn 1.5% cash back for every $1 spent on purchases.
- Points: Earn one point for every $1 spent on net purchases and 1,000 bonus points when your company spends $1,000 in any monthly billing period.
If you choose cash back, you’ll earn more on everyday spending than you will with the BBVA Compass Secured Visa® Business Card, which pays just one point per dollar spent. However, the BBVA card offers bonus category rewards of up to three points per dollar.
How to Redeem Rewards
If you choose cash back, redemption is automatic. You’ll receive a statement credit or the bank will deposit cash rewards in your eligible checking or savings account once per quarter. If you choose points, you can redeem them for gift cards, merchandise, or airline tickets. When you redeem points online, you’ll receive a 10% point credit. You’ll be charged a $24 redemption fee when you redeem your points for airline tickets.
Wells Fargo Business Secured Card Additional Features
Under Wells Fargo’s purchase protection program, the issuer will replace, repair, or reimburse you for eligible items in the event of theft or damage within the first 90 days of purchase. This coverage is identical to what the BBVA Compass Secured Visa® Business Card offers, although you’ll also receive travel accident and car rental insurance with that card. Other Wells Fargo business credit cards also offer this protection.
What the Wells Fargo Business Secured Card Is Missing
Although the $25 annual fee per card is fairly low, there are some personal secured credit cards that charge no annual fee, including the Capital One® Secured Mastercard® and Discover it® Secured. This may be a factor to consider, especially if you have a smaller credit line, as the annual fee will decrease your amount of available credit until you pay off the balance of the fee.
Wells Fargo Business Secured Card Reviews
We considered both user reviews and our own editorial review when rating this card. In our Wells Fargo Business Secured Card review, we called this card the clear winner among business secured credit cards. But some users say owning the card didn’t help them as much as they hoped it would.
User Reviews
User reviews are mixed for the Wells Fargo Business Secured Card. Business owners say their responsible use of this card has allowed them to improve their personal credit score, sometimes by more than 100 points. Others complain that even with responsible use, the issuer failed to offer them a chance to graduate to an unsecured business credit card.
Editorial Reviews
We rate business secured credit cards based on their costs, rewards, and benefits. The Wells Fargo Business Secured Card is the best secured business credit card available today. It’s a good pick for owners looking to build or improve their credit because it’s cheaper to own and offers a higher credit limit than many other secured credit cards.
Where to Apply for the Wells Fargo Business Secured Card
Online applications are taken for the Wells Fargo Business Secured Card only for business owners with an existing relationship with the bank. Others need to apply in person at a branch. When considering your application, Wells Fargo will examine your credit experience, payment history, cash flow, existing credit obligations, and your current bank relationship.
BBVA Compass Secured Visa® Business Card: Best Secured Business Credit Card for Rewards
The BBVA Compass Secured Visa® Business Card is a good choice if your business has significant office supply expenses. The card pays three points for every $1 spent at office supply stores, the best on our list. Its APR is 17.99%, slightly higher than the Wells Fargo Business Secured Card charges at 16.90%. This card is available in seven Southern and Southwestern states.
BBVA Compass Secured Visa® Business Card Costs
Financing costs and fees on the BBVA Compass Secured Visa® Business Card include:
- Credit line: Minimum opening deposit is $500; you can make deposits at any time in $100 increments, and your available credit will be 90% of your security deposit balance
- APR: Ongoing APR is 17.99% variable, which adjusts with the prime rate
- Late fee: $19 if the previous balance on statement showing a fee is less than $100; $39 if the balance is $100 or more; and $49 if penalty APR is in effect
- Foreign transaction fee: 3% foreign transaction fee on purchases made outside the U.S.
- Annual fee: $40, waived the first year; employee cards are free
- Penalty APR: 29.49%, which may be applied if you make a late payment
One negative here is that your credit line is less than your full security deposit. Other secured business credit cards set the credit line at 100% of your security deposit. The Capital One® Secured Mastercard® allows certain cardholders to have a security deposit that is less than their credit line.
BBVA Compass Secured Visa® Business Card Rewards
The BBVA Compass Secured Visa® Business Card offers a tiered rewards program:
- Earn three points per dollar at office supply stores.
- Earn two points at gas stations and restaurants.
- Earn one point for all other purchases.
This card offers the richest rewards for office supply spending on our list, and ties for the best gas and dining rewards. The Discover it® Secured pays 2% cash back on your first $1,000 in combined gas and restaurant purchases each calendar quarter.
How to Redeem Rewards
You can redeem your points for a gift card or a credit to your card account. You may have to wait up to seven days for a redemption to your account to post. You must redeem a minimum of 2,500 points. Points are worth one cent each.
BBVA Compass Secured Visa® Business Card Additional Features
The BBVA Compass Secured Visa® Business Card offers the following benefits:
- Purchase protection: BBVA Compass will replace, repair, or reimburse you for eligible items in the event of theft or damage within the first 90 days of purchase.
- Travel accident insurance: You’ll receive coverage up to $500,000 for travel accidents when transportation is purchased with your business credit card.
- Auto rental collision damage waiver: You’re covered for damage due to collision or theft when you rent an eligible car with your BBVA Compass Secured Visa® Business Card Rewards card.
The purchase protection benefit is similar to what the Wells Fargo Business Secured offers. The auto rental insurance is identical to what the Capital One® Secured Mastercard® offers.
What the BBVA Compass Secured Visa® Business Card Is Missing
The BBVA Compass Secured Visa® Business Card and the First National Bank of Omaha Business Edition® Secured® Visa Card are the two secured business credit cards on our list that are not available nationally. Business owners in just seven states are eligible to apply: Alabama, Arizona, California, Colorado, Florida, New Mexico, and Texas.
BBVA Compass Secured Visa® Business Card Reviews
We considered both user reviews and editorial reviews when rating this card. The BBVA Compass Secured Visa® Business Card has one of the best secured business credit card offers for rewards. However, we don’t believe owners should consider rewards first when contemplating a secured business credit card.
User Reviews
We were unable to find any online user reviews for the BBVA Compass Secured Visa® Business Card, but the bank generally receives middling reviews, with customers frequently complaining about customer service.
Editorial Reviews
We rate secured business credit cards based on their costs, rewards, and benefits. This card charges both a reasonable annual fee and ongoing APR. It also offers excellent rewards on office supply spending. Just be aware, though, that building credit—not earning rewards—should be the top priority in choosing a secured business credit card.
Where to Apply for the BBVA Compass Secured Visa® Business Card
Small business owners cannot apply for the BBVA Compass Secured Visa® Business Card online. The bank directs potential cardholders to apply at a branch or to call a toll-free phone number.
First National Bank of Omaha Business Edition® Secured® Visa Card: Best Secured Business Credit Card for High Credit Limits
The First National Bank of Omaha Business Edition® Secured® Visa Card is best for businesses that need a secured credit line of as much as $100,000. That’s a significantly higher credit limit than the $25,000 cap allowed on the Wells Fargo Business Secured Card. This card is available in just seven Western and Midwestern states.
First National Bank of Omaha Business Edition® Secured® Visa Card Costs
Financing costs and fees on the First National Bank of Omaha Business Edition® Secured® Visa Card include:
- Credit line: Your available credit will be 90% of your security deposit, which will be between $2,200 and $110,000; you’ll earn 0.05% APY on your security deposit account balance
- APR: Ongoing APR is 20.24% variable, which adjusts with the prime rate
- Late fee: $35 if the new balance is less than $500; and $39 if the balance is equal to or greater than $500
- Foreign transaction fee: 3% on purchases made outside the U.S.
- Annual fee: $39
- Penalty APR: None
It’s not much, but this is the only card on our list that pays interest on your security deposit. The APR is lower than some other cards on this list, and well below interest rates of 30% or more offered by the worst secured credit cards. The annual fee is slightly above average.
First National Bank of Omaha Business Edition® Secured® Visa Card Rewards
The First National Bank of Omaha Business Edition® Secured® Visa Card pays no rewards, unlike other cards on our list, including the Wells Fargo Business Secured Card, which pays 1.5% cash back on all purchases.
First National Bank of Omaha Business Edition® Secured® Visa Card Additional Features
The First National Bank of Omaha Business Edition® Secured® Visa Card offers the following benefits:
- Automatic discounts: Good on purchases you make at qualified merchants. Rebates will be applied as statement credits.
- Cell phone protection: Protection covers the primary line and up to the first four secondary lines listed on your statement against damage and theft. Coverage is good up to $1,000 per 12-month period, or $600 per claim subject to a $50 deductible.
Cell phone protection is a unique perk available only to this card on our list. Other cards offer perks not included here, like purchase protection and extended warranties.
What the First National Bank of Omaha Business Edition® Secured® Visa Card Is Missing
The First National Bank of Omaha Business Edition® Secured® Visa Card and the BBVA Compass Secured Visa® Business Card are the two secured business credit cards on our list that are not nationally available. Business owners in just seven states are eligible to apply: Colorado, Iowa, Illinois, Kansas, Nebraska, South Dakota, and Texas.
First National Bank of Omaha Business Edition® Secured® Visa Card Reviews
We considered both user reviews and editorial reviews when rating this card. This First National Bank of Omaha secured card is ideal for businesses with a bunch of cash on hand, as you can win a credit limit of up to $100,000. But the APR is slightly higher than you’ll find on some of the other cards on our list, so you’ll need to be diligent about paying off your bill each month.
User Reviews
We were unable to find any online user reviews for the First National Bank of Omaha Business Edition® Secured® Visa Card. The bank’s secured credit cards, in general, receive mixed reviews. Some customers liked that the cards helped them raise their credit scores. Other customers complained about customer service or lack of rewards.
Editorial Reviews
We rate secured business credit card offers based on the card’s costs, rewards, and benefits. The First National Bank of Omaha Business Edition® Secured® Visa Card charges a higher annual fee and a higher APR than some other cards on our list. Still, it’s the go-to card if you live in a state where you’re eligible to apply and you need a large credit limit.
Where to Apply for the First National Bank of Omaha Business Edition® Secured® Visa Card
You can apply online for the First National Bank of Omaha Business Edition® Secured® Visa Card. Be prepared to provide beneficial owner information during the application process.
Discover it® Secured: Best Introductory Bonus on a Secured Business Credit Card
The Discover it® Secured card is best for business owners who want an introductory bonus. This card doesn’t pay a traditional sign-up bonus. Instead, Discover it® Secured will match all of the cash-back rewards you earned during the first year. That could add up to a better return than any other card on our list. Watch out for the 24.74% APR, though—it’s the second-highest on our list.
Discover it® Secured Costs
Financing costs and fees on Discover it® Secured include:
- Credit line: Your credit limit is equal to your security deposit, which will be between $200 and $2,500 based on your income and ability to pay
- APR: Ongoing APR is 24.74%, which adjusts with the prime rate
- Late fee: Discover will not charge you a fee on your first late payment, and up to $39 thereafter
- Foreign transaction fee: None
- Annual fee: None
- Penalty APR: None
Beginning at eight months, Discover will review your credit card account monthly to determine if your security deposit can be refunded. As a result, you’ll graduate to an unsecured credit card.
The free pass on your first late payment is fairly unique among secured credit cards. The other card costs are fairly standard for a secured credit card, including the APR. The maximum credit line is low, particularly if you need a business secured credit card to fund your firm’s operations.
Discover it® Secured Rewards
The Discover it® Secured pays 2% cash back on your first $1,000 in combined gas and restaurant purchases each calendar quarter. Gas and restaurant category purchases over the quarterly cap, and all other purchases, earn 1% cash back. If your budget includes big spending on these purchases, this card could be a better fit than the Wells Fargo Business Secured, which pays 1.5% on all spending.
How to Redeem Rewards
You can redeem rewards for credit to your account or an electronic deposit into any account you designate starting at a penny. Gift cards start at $20 and charitable donations to select charities start at a penny. You can also make purchases at select merchants with your rewards.
Discover it® Secured Additional Features
The Discover it® Secured offers the following benefits:
- Freeze it: When you freeze your account, Discover will not authorize new purchases, cash advances, or balance transfers. However, some activity will continue, including bills that merchants mark as recurring, as well as returns, credits, dispute adjustments, and payments.
- Free FICO credit score: Discover card members receive their credit score for free online and on monthly statements. This can be a valuable tool as you track your progress in building or improving your credit score.
Other cards offer potentially more lucrative features, including the Wells Fargo Business Secured. Wells Fargo offers a purchase protection program that will replace, repair, or reimburse you for eligible items in the event of theft or damage within the first 90 days of purchase.
What the Discover it® Secured Is Missing
Discover it® Secured is a personal credit card, which means your card activity will only be reported to consumer credit bureaus. You will not have a chance to build business credit with this card. It also comes with a low maximum credit limit of $2,500, which could prove problematic if you need to use your card to both build credit and finance your business.
Discover it® Secured Reviews
We considered both user reviews and editorial reviews when rating this card. Discover it® Secured is a personal secured card for business use, but it falls short when it comes to the maximum credit line and its APR, which is about seven percentage points higher than the best card on our list.
User Reviews
Discover it® Secured receives mostly positive feedback in online reviews. Users say the card is great for building credit and earning rewards. Reviewers also give the issuer’s customer service high praise.
Editorial Reviews
We rate secured business credit cards based on their costs, rewards, and benefits. This is a good secured credit card to build your personal credit, but its low maximum credit limit of $2,500 and its high APR limit this card’s usefulness as a tool to help finance your company.
Where to Apply for the Discover it® Secured
You can apply for the Discover it® Secured online and receive a decision instantaneously. Expect to receive your card in about two weeks. This allows the issuer time to withdraw your security deposit, confirm the funds transfer is successful, and set up your account.
Capital One® Secured Mastercard®: Best Secured Business Card With Flexible Credit Limits
The Capital One® Secured Mastercard® is best for business owners who want a credit limit greater than their security deposit. The credit limit on most secured credit cards is equal to—or slightly less than—your security deposit. Depending on your creditworthiness, you could get a credit line of $200 with a security deposit of just $49. Keep in mind that this is a personal secured credit card, so you’ll be able to build personal credit only.
Capital One® Secured Mastercard® Costs
Financing costs and fees on the Capital One® Secured Mastercard® include:
- Credit line: Minimum security deposit amount will be either $49, $99, or $200, based on Capital One’s review of your credit history and application information; minimum initial credit line is $200
- APR: Ongoing APR is 26.99% variable, which adjusts with the prime rate
- Late fee: Up to $39
- Foreign transaction fee: None
- Annual fee: None
- Penalty APR: None
This card is unique in its potential extension of a line of credit larger than your security deposit, but the APR is the highest on our list—nine percentage points higher than the Wells Fargo Business Secured. The lack of an annual fee is a major plus for this secured card.
Capital One® Secured Mastercard® Rewards
The Capital One® Secured Mastercard® pays no rewards, unlike the Wells Fargo Business Secured Card, which pays 1.5% cash back on all purchases.
Capital One® Secured Mastercard® Additional Features
The Capital One® Secured Mastercard® offers the following benefits:
- Card lock: If you misplace your credit card, you can lock it and turn it back on again when you’re ready in the Capital One mobile app.
- Auto rental collision damage waiver: You’re covered for damage due to collision or theft when you rent an eligible car with your Capital One® Secured Mastercard®.
- Travel accident insurance: Get automatic insurance for a covered loss up to $100,000 at no extra charge when you use your credit card to purchase your fare.
- Extended warranty: You’ll get additional warranty protection for up to 12 months at no charge on eligible items that are purchased with your credit card.
This fairly robust protection for a secured credit card is more than what the Wells Fargo Business Secured offers. That card includes purchase protection only.
What the Capital One® Secured Mastercard® Is Missing
This card’s real issue is its low starting credit limit. If your only reason to open this card is to build your credit, then the $200 limit might be little more than an annoyance. But if you need a credit card that actually allows you to pay for business expenses, you should steer clear of the Capital One® Secured Mastercard®. This card also won’t help you build your business credit, as it’s a personal secured credit card.
Capital One® Secured Mastercard® Reviews
We considered both user reviews and editorial reviews when rating this card. The Capital One® Secured Mastercard® charges no annual fee, which is fairly unusual for a secured credit card. The APR is a bit higher than other cards on our list.
User Reviews
The Capital One® Secured Mastercard® receives generally positive feedback in online reviews. Users say the card is ideal for building or establishing credit. Some complain about the high interest rate, which isn’t out of line with industry standards.
Editorial Reviews
We rate small business credit cards based on their costs, rewards, and benefits. The Capital One® Secured Mastercard® keeps fees in check, which we appreciate, even if the APR is a tad higher than the best cards on our list. We don’t find this card to be a good way to finance your business, however, since the credit line is so low.
Where to Apply for the Capital One® Secured Mastercard®
You can apply for the Capital One® Secured Mastercard® online and receive a decision instantaneously. It may take two to three weeks to receive your card after you make your security deposit.
Bento for Business Prepaid Card: Best Alternative to a Secured Business Credit Card
Bento for Business is best for businesses looking to manage employee spending without using a small business credit card. Bento is a prepaid business debit card, which acts similar to a secured business credit card. It requires no credit check, and your limit is dependent on how much you deposit. Bento offers two free cards per account. You’ll pay $29 a month for up to 10 cards.
Bento for Business Costs
Bento for Business charges just one fee—its monthly fee. Bento offers tiered pricing:
- The first two cards are free on an account
- Accounts with three to 10 cards pay $29 per month
- Accounts with 11 to 25 cards pay $69
- Accounts with more than 25 cards pay $149
Spend more than $20,000 per month and Bento will waive the monthly fee. Unlike other prepaid cards, Bento does not charge transaction, new card issuance, setup, or load fees. It’s also one of the few prepaid debit cards that offers a free option. If you need two or fewer cards, this is a cheaper option than the Wells Fargo Business Secured Card, which charges a $25 annual fee per card.
Bento for Business Rewards
Like most prepaid business cards, Bento for Business offers no rewards. Some of the secured credit cards on our list offer rewards, including the Discover it® Secured card, which pays 2% cash back on your first $1,000 in combined gas and restaurant purchases each calendar quarter.
Bento for Business Additional Features
Bento for Business offers several features that other cards on our list offer, but which aren’t particularly common to business prepaid cards, like purchase protection and rental car insurance.
Bento for Business includes the following additional features:
- Auto rental collision damage waiver: Receive primary rental coverage when you rent a car for business. You may be reimbursed for up to the actual cash value of the vehicle in case of collision or theft.
- Purchase protection: When you use your Bento for Business prepaid debit card and your purchase is stolen or damaged within the first 90 days, you’re covered up to $10,000 per claim and $50,000 per year. The item will either be repaired or replaced, or you will be reimbursed.
These features are similar to what the BBVA Compass Secured Visa® Business Card Rewards Credit Card offers.
What the Bento for Business Is Missing
Bento for Business isn’t a credit card, so you’ll need plenty of working capital to fund your spending. The card also doesn’t report activity to the credit bureaus, so using Bento won’t help you move your credit from poor to fair. This card isn’t a good alternative if building your credit score is a priority.
Bento for Business Reviews
We considered both user reviews and editorial reviews when rating small business credit cards. Bento for Business reviews are positive. This prepaid card is seen as an inexpensive way to pay for business expenses and manage employee spending. The monthly cost can get expensive if you need more than two cards.
User Reviews
We scoured the internet to find Bento for Business user reviews. Users say managing multiple cards is simple and efficient, making it easy to control business expenses. Customer service is seen as a huge positive. Some cardholders complain that it takes too long for deposited funds to be processed. Transfers may take two to three business days to process.
Editorial Reviews
We rate small business credit cards based on their costs, rewards, and benefits. Bento is ideal for small businesses that only need a card or two. Ongoing costs, in this case, almost certainly would be lower than with a small business credit card. But if you need more than two cards, you’ll be better off with a credit card to keep costs down.
Where to Apply for the Bento for Business
You can apply online for Bento for Business and receive instant approval. The account will take two to three days to fund, and you’ll receive your first card within seven to 10 business days.
Other Alternatives to a Secured Business Credit Card
If your credit score is above 580, you may be able to qualify for an unsecured small business credit card. Unsecured cards often come with better APRs of 25% or lower and rewards of 1% or more. Most importantly, they don’t require a security deposit, so you can keep more of your money.
If your credit is high enough, consider one of the following types of small business credit cards:
- Business credit cards for fair credit: This type of card is available to owners with credit scores between 580 and 669. The Capital One® Spark® Classic for Business charges no annual fee.
- Business charge cards: Earn top rewards and grab great perks like free airport lounge access with this type of card. Charge cards work like credit cards, but you’re required to pay off your bill in full each month. As a result, you’ll be charged no interest.
- Business credit cards for startups: You’ll need a credit score of at least 680 to qualify for one of these cards tailored to entrepreneurs just getting their firms off the ground. The best of these cards offer 0% APR introductory periods of 12 months or longer, ongoing APRs as low as 14%, and rewards of up to 5%.
- Business rewards credit cards: To earn the best rewards and the lowest APRs, this type of small business credit card may require a credit score of at least 750. The best of these cards include travel perks like free airport lounge access and introductory rewards of $500 or more.
- Personal cards for businesses: Unestablished businesses may find it easier to qualify for a personal credit card, which could offer more flexible rewards. Best for business owners with a credit score of at least 680, some personal cards may offer 2% cash back on all spending or up to 5% on categories like dining and entertainment.
Bottom Line
Before you apply for a secured business credit card, you should know your credit score. If your score is 579 or lower, you may be a good candidate for a secured business credit card. You’ll have to put down a security deposit to qualify and your credit line may be $1,000 or less, but it could help you build credit so that you can qualify for an unsecured credit card.
We think the Wells Fargo Business Secured Card is the best secured business credit card because it’s widely available, charges a decent APR, and offers an above-average maximum credit line.
Isaac S.
I was a WellsFargo Bank client from 2011 til 2017, I had Checking & Savings, Plus Secured credit card, Each end of month my account got low and I was a serious target of Overdrafts, Every month I was Overdrafted 1 to 3 times just for having a low bank account, When 1 over drafted othe charges fell right in line for them, I ask for solutions every 3 months, Was told its OK now but still loaded my accounts up with Cash each month NOT Realizing they were taking money out all time, So this went on for yrs, Finally I stopped using ALL my accounts, They closed my $2500. secured C.C. in good standings January 2017 in Feb & March they have reported late charges 3 times, My question is “How can I have late charges” when my account was closed in good standing? Anyway they are on their way to Court, Litigations are pending!!!!!!!!!!!
Laura Handrick
Isaac,
Sounds like you had an awful experience. Thanks for sharing, and good luck.
Laura, Staff Writer
Isaac
WellsFargo is being sued by 1,000s of People for Fraud, Constant Over Drafts & more, I personally have been over drafted from my past recent bank accounts every month from 2011 thru 2016 and now Im about to take them to Littigations for it, They also closed my credit card account in good standings and 2 to 4 months later added late fees on my credit profile which Im sueing also about it, But deal with WellsFargo OK best of Luck lol……
Jeff White
Hi Isaac,
Thanks for your feedback! Wells Fargo is currently under more scrutiny than any other bank due to some of the events you’ve mentioned. Those are the best times to take advantage of the services large banks like Wells Fargo have to offer. In addition, this is an article about secured business cards. Borrowers using secured business credit cards typically have few options, and we’ve put together this article to represent the best secured cards that will help the most amount of business owners. Wells Fargo offers one of the best secured programs and reaches more people than pretty much any other bank. We will keep an eye on the events from March 2017 and see what happens with Wells Fargo. If we need to, we’ll adjust the article to reflect any changes. Thank you for your concern and honest input.
Best,
Jeff
Michael Grant
Thanks! FitSmallBusiness.com is a Very Good resources for Small Businesses! You are very thorough and transparent! Great Job! Best Wishes!
Emily
Hi, can anyone confirm if the Wells Fargo Secured Business Credit Card actually do report to both your personal and business credit report? I am trying to rebuild my credit and have applied for this card after reading this article 2 months ago, however, it does not look like it is reporting to my personal credit report?
Dock David Treece
Hi Emily,
If you applied for this card using your personal credit score, it should be reported on your personal credit score. However, it may take some time to show up on your credit report. If it doesn’t start showing up on your credit report within a month or two, you can follow-up with Wells Fargo to see if there’s a problem.
Best,
Dock
Ro Mundy
HI:
I am trying to find out if I can get a secured business credit card with out it being attached to my personal credit.
You are limited by utilization usage on a consumer credit card where as with a business credit card you are not.
My personal score is good I have had my LLC for around 8 years, but I have only had my business checking account for only 2 years.
This will be the first year I will actually be using my business checking account for business only.
I do not have bad personal credit but I do have low history business credit.
Ian Atkins
Hi Ro,
As with most small business borrowing, you typically need to personally guarantee secured small business credit cards and they will be tied to your personal credit.
However, this shouldn’t have any significant impact on your personal credit unless you default on the card or hold excessive balance on the account.
Thanks for joining the conversation.
Best,
Ian
Ryan J Wintrow
I just called in and they said this does not attach to my personal credit, only the business. They will check your personal credit when applying though.
Thomas
Bad article, you have to be a wells fargo member for at least 6 months in good standing. I do not bank with them due to their credit checks which are mandatory (3 per year). And yes, they were hard checks and are still on my credit report from 4 years ago (stay for 6 years).
Do not be fooled, ask them if they check your credit just for a checking account.
Ian Atkins
Hi Thomas,
Thanks for joining the conversation.
Sorry to hear you think this article was missing something. We will look into the what you described, the mandatory hard credit checks for banking with them and update the article accordingly. While this article is focused on secured business credit cards for those small business owners with thin or damaged credit looking to build their business credit scores, we certainly don’t want to leave out a detail like the one you mentioned above.
Best,
Ian
Best,
Ian