Editor’s note: This is a recurring post with regularly updated card details.
Business owners with personal credit scores below 580 can access financing through secured credit cards. Secured cards typically have credit limits equal to a cash deposit held in a collateral account the bank requires you to make during the application process. The best cards give owners an opportunity to build credit without paying high fees.
The best secured business credit cards are:
- Wells Fargo Business Secured Card: Best overall for opening a secured card with the lowest fees
- BBVA Compass Secured Visa® Business Card: Best for firms in the Sun Belt that crave the fixed-rate rewards
- First National Bank of Omaha Business Edition® Secured® Visa Card: Best for credit limits of up to $100,000 and companies in parts of the Midwest
- Bento for Business Prepaid Card: Best for controlling employee spending and avoiding a credit check
Wells Fargo Business Secured Card: Overall Best Secured Business Credit Card
Wells Fargo Business Secured Credit Card
BEST FOR
Business owners with poor credit
- Cash Back option: Earn 1.5% cash back on every $1 spent
- Reward Points option: Earn 1 point on every $1 spent and receive 1,000 bonus points when your company spend is $1,000 or more in any monthly billing period
- $0 annual rewards program fee
- $500 to $25,000 credit line
- Zero liability protection
Pros
- Approval with credit scores below 580
- Your choice of fixed-rate cash back or points rewards
Cons
- Requires a security deposit of at least $500
- Has an annual fee
- Purchase Assurance: Wells Fargo will repair, replace, or reimburse you for items that are damaged or stolen within 90 days of purchase.
- Design Studio: Include a personal image or business design on your credit card.
Why we like it: The Wells Fargo Business Secured Card is the only business secured 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 from $500 up to $25,000, depending on the amount you deposit into a collateral account.
This card also allows you to earn rewards and lets you choose between cash back or points. You can either earn 1.5% cash back on every purchase or one point for every $1 spent. If you choose points, you can also earn 1,000 bonus points when your company spends $1,000 in any monthly billing period.
The annual percentage rate (APR) on this small business credit card is the cheapest among the secured credit cards on this list and well below some of the worst secured cards we reviewed, which charge 35% APR or more.
Tip: Although this card has the lowest APR, you should always aim to repay your monthly balance. Making timely payments can help you avoid interest and improve your business credit score.
BBVA Compass Secured Visa® Business Card: Best for the Highest Rewards
BBVA Compass Secured Visa® Business Credit Card
BEST FOR
Business that operate out of Southern or Southwestern states
- Low $40 annual fee waived the first year
- Available credit is 90% of your savings account balance
- Earn 1 point for every $1 in purchases, plus get 3x points at office supply stores and 2x points at gas stations and restaurants
- Online account services
- Employee cards at no additional cost
Pros
- No personal credit check required
- Annual fee is waived for the first 12 months
Cons
- Only available in Alabama, Florida, Texas, Arizona, Colorado, California, and New Mexico
- Your available credit will be 90% of your security deposit balance
- 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.
Why we like it: This easy approval business credit card pays lucrative rewards—1.5 points for every $1 spent. It’s 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.
There’s a minimum opening deposit of $500, and you can increase your limit and make deposits at any time in $100 increments. Your available credit will be 90% of your security deposit balance, so your initial deposit of $500 means your credit limit will be $450. For comparison, other cards on this list set the credit line at 100% of your security deposit.
First National Bank of Omaha Business Edition® Secured® Visa Card: Best 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
- Request your own credit limit2 between $2,000 and $100,000 (multiples of $50), when you apply, subject to credit approval.
- Security deposit is 110%2 of the amount of your credit limit, between $2,200 and $110,000 (multiples of $50), subject to credit approval.
- $39 annual fee
- Earn interest on your security deposit.
- Variable 19.99% APR on purchases and balance transfers based on the Prime Rate.
- Get automatic rebates, with Visa SavingsEdge® on purchases you make at qualified merchants.
- U.S. citizenship is not required, but you must have a valid SSN or ITIN and a valid U.S. address.
- Online access to view transactions, pay your bill, view up to seven years of prior statements and more!
Pros
- Credit limits up to $100,000
- You’ll earn 0.05% APY on your security deposit account balance
Cons
- Offers no introductory or ongoing rewards
- Only available in Colorado, Iowa, Illinois, Kansas, Nebraska, South Dakota, and Texas
- 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.
Why we like it: The First National Bank of Omaha Business Edition® Secured® Visa Card offers the largest secured credit lines on our list. You can request your own credit limit between $2,000 and $100,000 in multiples of $50, subject to credit approval. What’s more, you’ll earn 0.05% annual percentage yield (APY) on your security deposit account balance.
While this card offers the largest credit lines, notice that it doesn’t offer any rewards, and it’s a regional business credit card. It’s only available in the following seven Western and Midwestern states: Colorado, Iowa, Illinois, Kansas, Nebraska, South Dakota, and Texas.
Bento for Business Prepaid Card: Best for No Credit Check
Bento For Business Visa® Debit Card
BEST FOR
Managing employee expenses without a credit check to qualify
- Instant Decision
- No Credit Check Required
- One-click card controls & expense reports
Pros
- Get the first two cards for free
- Easily manage employee expenses
- Additional card features and purchase protections
Cons
- Large fees for more than two cards
- Deposited funds are required
- Won’t help build business or personal credit
- Auto rental collision damage waiver: Use this card to pay for your entire auto rental transaction and get collision coverage for a damaged or stolen rental vehicle, up to the value of the vehicle.
- Purchase protection: Purchases are covered up to 90 days for damage and theft, up to $10,000 per claim, $50,000 per year.
Why we like it: Bento is a prepaid business debit card, which acts similarly to a secured business credit card. It requires no credit check, and your limit is dependent on how much you deposit. Bento for Business is best for businesses looking to manage employee spending without using a small business credit card.
Bento offers two free cards per account. If you need at least three cards, the monthly cost starts at $29. However, Bento will waive the monthly fee if you spend more than $20,000 per month. Unlike other prepaid cards, Bento does not charge transaction, new card issuance, setup, or load fees.
Tip: If you don’t have cash on hand and want to build your credit, choose another card on our list. Bento for Business isn’t a credit card, so you’ll need plenty of working capital to fund your spending. It also doesn’t report activity to the credit bureaus, so using it won’t help you improve your credit score.
What Is a Business Secured Credit Card?
A secured business credit card is a financing option available to small business owners with personal credit scores below 580. They can help owners improve both their personal and business credit scores through the responsible use of a line of credit. The credit line is often equal to a cash deposit held in a collateral account.
Tip: 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 business secured credit cards, you won’t be able to build your personal and business credit because prepaid cards don’t report to credit bureaus.
How a Business Secured 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 like Chase Ink Business CashSM.
How We Evaluated the Best Secured Business Credit Cards
We looked for business secured credit cards that offer users a relatively inexpensive way to improve their credit and eventually graduate to an unsecured credit card. Most aren’t worth recommending because they charge excessive fees, including setup and credit line increase fees. However, the ones we included here offer inexpensive card fees and access to sizable credit limits.
Bottom Line
Before you apply for a business card, you should know your credit score. If your score is below 580, 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 could be $1,000 or less. However, these cards could help you build credit so that you can qualify for an unsecured business credit card.
