A secured business credit card can help you qualify for a card if your credit score is below 580. The best secured business credit cards give business owners with low credit an opportunity to build credit without paying high fees. Your credit limit may be equal to a cash deposit held in a collateral account.
The best secured business credit cards of 2020 are:
- Wells Fargo Business Secured Card: (Best overall) Best for opening a secured card with the lowest fees
- BBVA Compass Secured Visa® Business Card: Best for firms in the Sunbelt region that crave the best rewards on a secured card
- First National Bank of Omaha Business Edition® Secured® Visa Card: Best for companies in parts of the Midwest seeking credit limits up to $100,000
- Discover it® Secured: Best for a personal credit card that offers introductory rewards
- Bento for Business Prepaid Card: Best for companies that want to control spending with employee cards
For more details on how we evaluate business credit cards for this list, see our methodology.
Wells Fargo Business Secured Card: Overall Best Secured Business Credit Card
Wells Fargo Business Secured Credit Card
Best For: Business owners with poor credit
| Intro APR | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|
| N/A | Prime + 11.90% on purchases | $25 per card | N/A |
The Wells Fargo Business Secured Card is the only secured business credit card that is available nationwide. Choose this card if you want to build your business credit while paying a low annual fee. Businesses can grab a credit limit of up to $25,000 and earn 1.5% in cash rewards.
Wells Fargo Business Secured Card Costs
- Credit line: Deposit $500 to $25,000 in a collateral account, which equals the amount of your credit line
- APR: 16.65% variable, 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 this easy approval business credit 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. However, you should aim for an excellent repayment history to avoid interest and improve your business credit score.
Wells Fargo Business Secured Card Rewards
- 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.
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.
Learn more: Wells Fargo business card reviews
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 Discover it® Secured. This may be a factor to consider when applying for a business card, 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.
BBVA Compass Secured Visa® Business Card: Best Secured Business Credit Card for Rewards
BBVA Compass Secured Visa® Business Credit Card
Best For: Business that operate out of Southern or Southwestern states
| Intro APR | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|
| N/A | 18.49% Variable | $40 (Waived First Year) | N/A |
This small business credit card is a good choice if your business has significant office supply expenses and operates out of Southern or Southwestern states. This card is only available in Alabama, Florida, Texas, Arizona, Colorado, California, and New Mexico. It pays the best rewards on our list—three points for every $1 spent at office supply stores.
BBVA Compass Secured Visa® Business Card Costs
- 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: 17.74% 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: 28.74%, 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.
BBVA Compass Secured Visa® Business Card Rewards
- 3 points per dollar at office supply stores.
- 2 points at gas stations and restaurants.
- 1 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.
BBVA Compass Secured Visa® Business Card Additional Features
- 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.
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.
First National Bank of Omaha Business Edition® Secured® Visa Card: Best Secured Business Credit Card for High Credit Limits
First National Bank of Omaha Business Edition Secured Visa Card
Best For: Secured credit lines of as much as $100,000
| Intro APR | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|
| N/A | 20.24% Variable | $39 | N/A |
Use the First National Bank of Omaha Business Edition® Secured® Visa Card if you need a secured credit line of as much as $100,000. Also, notice that this is a regional business credit card and is only available in just seven Western and Midwestern states: Colorado, Iowa, Illinois, Kansas, Nebraska, South Dakota, and Texas.
First National Bank of Omaha Business Edition® Secured® Visa Card Costs
- Credit line: Request your own credit limit between $2,000 and $100,000 (multiples of $50) when you apply, subject to credit approval; you’ll earn 0.05% APY on your security deposit account balance
- APR: 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
- Automatic discounts: Good on purchases you make at qualified merchants. Rebates will be applied as statement credits.
- Cellphone 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.
Cellphone 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.
Discover it® Secured: Best Introductory Bonus on a Secured Business Credit Card
Discover it® Secured
Best For: Business owners who need help rebuilding personal credit
| Intro APR | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|
| N/A | 24.49% Variable | $0 | N/A |
The Discover it® Secured card is best for earning 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 high APR, though.
Discover it® Secured Costs
- 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: 24.49% variable, 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.
Discover it® Secured Additional Features
- 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.
Bento for Business Prepaid Card: Best Alternative to a Secured Business Credit Card
Bento For Business Visa® Debit Card
Best For: Managing employee expenses without a credit check to qualify
| Number Of Cards | Monthly Cost | Daily Load Limit | Daily Spend Limit |
|---|---|---|---|
| Unlimited | $0 for the first 2 cards. $29-149 monthly for more | None | $25,000 |
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.
Bento for Business Costs
- First two cards: Free
- Three to 10 cards: $29 per month
- 11 to 25 cards: $69 per month
- 26 cards or more: $149 per month
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.
- 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.
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.
What Is a Secured Credit Card?
A secured business credit card is best for small business owners with personal credit scores below 580. 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.
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. See methodology in detail.
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.
- APR: The interest rate a card charges you if you don’t pay off your bill in full each month.
- Security deposit: The minimum and maximum amounts you can deposit to establish your credit line.
- Rewards: The points or cash back you earn by using your business secured credit card.
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.
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.
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