Editor’s note: This is a recurring post with regularly verified card details. Last verified on July 9, 2020.
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 best 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
For more details on how we evaluated 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 |
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
| Intro APR | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|
| N/A | 18.49% Variable | $40 (Waived First Year) | N/A |
Why we like it: This easy approval business credit card pays the best rewards on our list—three points for every $1 spent at office supply stores. 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
| Intro APR | Regular APR | Annual Fee | Credit Needed |
|---|---|---|---|
| N/A | 20.24% Variable | $39 | N/A |
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
| 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 |
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.
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.
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.
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.
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