The best secured business credit cards allow owners with credit scores below 579 to build credit without paying high fees. The best cards charge APRs of 20% or less and offer rewards of 1%+. Since your credit limit is tied to a security deposit, we looked for cards that allow deposits up to $25,000.
If you have a credit score of 580+, you may qualify for an unsecured credit card that offers lower rates and better rewards. The best small business credit cards offer rewards of up to 5% and charge APRs around 14%.
Compare All Top Business Credit Cards
Top 6 Secured Business Credit Cards 2019
| Best For | |
|---|---|
| Wells Fargo Business Secured Card | (Best overall) Businesses that want a secured card with the lowest fees. |
| BBVA Compass Secured Visa Business Credit Card | Firms in the Sunbelt region that crave the best rewards. |
| First National Bank of Omaha Business Edition Secured Visa Card | Companies in parts of the Midwest seeking credit limits up to $100,000. |
| Capital One Secured Mastercard | Firms seeking credit limits above their security deposit. |
| Discover it Secured | Business owners looking for an introductory bonus. |
| Bento for Business Prepaid Card | Companies that want to control spending with employee cards. |
What Is a Secured Credit Card?
A secured business credit card is a revolving line of credit designed for business owners with poor or limited credit. Many business owners who have been turned down for an unsecured business credit card can qualify for a secured credit card. The credit limit on a secured business card is often equal to the 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 with 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 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/or 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/maximum amount 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 charge modest annual fees below $50 and assess APRs of 25% or less. They also report your spending and payment history to all three credit bureaus, which could help improve your credit score. When you’re building credit, rewards shouldn’t be a primary concern, but the best secured cards also offer a modest return on spending.
Based on the features business owners with poor or limited credit should look for in a secured business credit card, we rank the Wells Fargo Business Secured Card as the overall best secured business credit card. The Wells Fargo card offers a low 17.15% APR and 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 17.15%, 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 a variable 17.15%.
- Fees: Up to $39 if you pay late; you’ll pay no foreign transaction fee on purchases made outside the U.S.
- Annual fee: $25 per card on up to 10 cards maximum.
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; redemption is automatic as you’ll receive a statement credit or the bank will deposit cash rewards in your eligible checking or savings account once per quarter
- 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; points can be redeemed for gift cards, merchandise, or 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 Rewards Credit Card offers, although you’ll also receive travel accident and car rental insurance with that card.
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 (e.g., 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
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.
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 Credit Card: Best Secured Credit Card for Rewards
The BBVA Compass Secured Visa Business Credit Card is a good choice if your business has significant office supply expense. The card pays three points for every $1 spent at office supply stores, the best on our list. Its APR is 18.24%, slightly higher than the Wells Fargo Business Secured Card charges at 17.15%. This card is available in seven Southern and Southwestern states.
BBVA Compass Secured Visa Business Credit Card Costs
Financing costs and fees on the BBVA Compass Secured Visa Business Credit Card include:
- Credit line: Minimum opening deposit is $500. You can make deposits at any time in $100 increments. Your available credit will be 90% of your security deposit balance.
- APR: Ongoing APR is a variable 18.24%.
- Fees: Late fee is $19 if the previous balance on statement showing fee is less than $100, $39 if the balance is $100 or more, and $49 if penalty APR is in effect. You’ll pay a 3% foreign transaction fee on purchases made outside the U.S.
- Annual fee: $40, waived the first year. Employee cards are free.
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 Rewards
The BBVA Compass Secured Visa Business Credit Card offers a tiered rewards program:
- Earn one point for every $1 in purchases
- Earn 3x points at office supply stores
- Earn 2x points at gas stations and restaurants
BBVA Compass Secured Visa Business Rewards Additional Features
The BBVA Compass Secured Visa Business Rewards Credit 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 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 Is Missing
The BBVA Compass Secured Visa Business Credit Card and the First National Bank of Omaha 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 Reviews
We were unable to find any online user reviews for the BBVA Compass Secured Visa Business Credit Card, but the bank generally receives middling reviews, with customers frequently complaining about customer service.
Where to Apply for the BBVA Compass Secured Visa Business
Small business owners cannot apply for the BBVA Compass Secured Visa Business Credit 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 BBVA Compass Secured Visa Business Credit Card include:
- Credit line: Your available credit limit will be between $2,000 and $100,000, subject to credit approval and a security deposit. Your available credit will be 90% of your security deposit balance. You’ll earn 0.05% APY on your security deposit account balance.
- APR: Ongoing APR is a variable 19.74%.
- Fees: Late fee is $35 if the new balance is less than $500, and $39 if the balance is equal to or greater than $500. You’ll pay a 3% foreign transaction fee on purchases made outside the U.S.
- Annual fee: $39.
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, with 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 Rewards 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 were unable to find any online user reviews for the First National Bank of Omaha Business Edition Secured Visa Card, but the bank’s secured credit cards in general receive mixed reviews, with some customers saying the cards helped them raise their credit scores, while others complained about customer service or a lack of rewards.
Where to Apply for the First National Bank of Omaha Business Edition Secured Visa Card
Small business owners cannot apply for the First National Bank of Omaha Business Edition Secured Visa Card online. The bank directs potential cardholders to apply at a branch.
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 secured credit cards like the Wells Fargo Business Secured card 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.
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 a variable 24.99%.
- Fees: Late payment fee is up to $38. You’ll pay no foreign transaction fee for purchases made outside the U.S.
- Annual fee: None.
This card is unique in its potential extension of a line of credit larger than your security deposit, but the APR is higher than other secured credit cards, including the Wells Fargo Business Secured, which charges just 17.15% APR. 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.
Capital One Secured Mastercard 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.
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.
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 24.99% APR, though—it’s the highest on our list.
Discover it Secured Costs
Financing costs and fees on Discover it Secured include:
- Credit line: Your security deposit will be between $200 and $2,500 based on your income and ability to pay. Your credit limit equals your security deposit. 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.
- APR: Ongoing APR is a variable 24.99%. Introductory balance transfer APR is 10.99% for six months from date of first transfer. Balance transfer fee is 3% of the amount of each transfer.
- Fees: Discover will not charge you a fee on your first late payment. After that, the fee is up to $37. You’ll pay no foreign transaction fee for purchases made outside the U.S.
- Annual fee: None.
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
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 Discover it Secured Is Missing
Discover it Secured has 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. If you find that limit untenable, consider one of the cards on this list with a higher possible credit limit, like the Wells Fargo Business Secured Card, which allows deposits up to $25,000.
Discover it Secured Mastercard 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.
Where to Apply for 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, which is the issuer’s average time needed to withdraw your security deposit, confirm the funds transfer is successful, and set up your account.
Bento for Business: 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 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 20 cards pay $69
- Accounts with 20 or more 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. One exception is 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
There are no minimum or maximum balance requirements, although you can load a maximum of $25,000 to the account daily. Each card has a $25,000 daily spending limit.
Because this is a prepaid debit card, there is no credit check, so if you’re credit is poor or you don’t have much of a credit history, you won’t need to worry about your score preventing you from being approved.
What 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
Bento for Business users wrote in online reviews that they liked how easy managing multiple Bento cards was and that the prepaid card offered their business a good way to monitor business expenses. Some users were disappointed in how long it took to process fund transfers.
Where to Apply for 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%+. 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 and comes with a variable APR of 24.74%.
- Business credit cards for startups: You’ll need a credit score of 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 750+. The best of these cards include travel perks like free airport lounge access and introductory rewards of $500+.
- 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 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.
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.
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
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