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 Credit Card is the best secured small business credit card. It’s ideal 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. The card’s ongoing annual percentage rate (APR) is an excellent 17.40%.
The best secured business credit cards charge modest annual fees below $50 and assess APRs of 25% or less. They also report your spending and payment history to credit bureaus, which could help improve your credit score. The Wells Fargo secured business credit card charges a $25 annual fee and offers ongoing rewards, which is rare for a secured business credit card. We give it 4 1/2 stars out of five.
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How We Evaluated the Wells Fargo Business Secured Credit Card
We evaluated all aspects of the Wells Fargo Business Secured Credit Card. It offers a low-interest rate that otherwise wouldn’t be available to owners with credit scores below 580. If you have a higher credit score, look to the best small business credit cards.
This Wells Fargo card’s best attribute is its credit line, which is equal to a collateral deposit of up to $25,000. The First National Bank of Omaha Business Edition Secured Visa Card allows a credit line up to $100,000, but your available credit is just 90% of that deposit.
We considered the following criteria when grading this card, based on what owners might need and want in a secured small business credit card:
- Annual fee: How much you’ll pay each year to own the card; the Wells Fargo secured business credit card charges a $25 annual fee
- Monthly fees: How much you’ll pay each month for account maintenance or other charges; Wells Fargo charges no monthly fees
- Introductory APR: Whether the card offers a period of no-interest financing on purchases or balance transfers; the Wells Fargo secured business credit card offers no 0% introductory APR
- Ongoing APR: How much it will cost to finance purchases on the card; this card charges an ongoing APR of 17.40%
- Security deposit: The minimum or maximum amount you can deposit in a collateral account to establish your credit line; you can deposit from $500 to $25,000 with this card and your available credit limit will be 100% of that amount
- Introductory rewards: The cash back or points you’ll earn by reaching minimum spending requirements over the first few months of card ownership; the Wells Fargo Business Secured Credit Card offers no introductory rewards
- Ongoing rewards: The cash back or points you’ll earn by using the Wells Fargo secured business credit card; this card offers ongoing rewards in the form of cash back or points
- Additional benefits: Whether the card comes with free perks that may increase its value; the Wells Fargo Business Secured Credit Card offers several benefits, including purchase protection and a periodic review to see if you qualify for an unsecured card
We weigh fees, APR, and the minimum and maximum credit lines heaviest when grading business secured credit cards. Before applying, you should make sure the issuer will report your account activity and payment history to credit bureaus so that you can improve your credit. Wells Fargo is the only business credit card that reports to a business credit bureau.
How We Evaluate Business Secured Credit Cards
When grading business secured credit cards like the Wells Fargo Business Secured Credit Card, we weigh the annual fee and ongoing APRs the heaviest. We also consider the card’s rewards, security deposit, introductory APR, and any other fees. The only piece that is missing from this card is 0% APR period and an introductory rewards offer.
We graded the Wells Fargo Business Secured Credit Card using the following methodology:
| Grading Criteria | ||
|---|---|---|
| Annual Fee | ||
| Ongoing APR | ||
| Ongoing Rewards | ||
| Introductory Rewards | ||
| Security Deposit | ||
| Other Fees | ||
| Introductory APR | ||
| Additional Features | ||
| Total Score |
Who the Wells Fargo Business Secured Credit Card Is Right For
The Wells Fargo Business Secured Credit Card is best for owners with a credit score below 580 and cash reserves of up to $25,000. Owners with poor credit or startup businesses may not be able to qualify for an unsecured credit card. They can use the Wells Fargo secured business credit card to pay for business expenses, control employee spending, and build credit — all with the goal of graduating to an unsecured small business credit card.
Wells Fargo Business Secured Credit Card Costs
This Wells Fargo Business Secured Credit Card does not offer introductory 0% APR financing. Its ongoing APR is 17.40%. That APR is the lowest for nationally available secured business credit cards. It also beats the APR offered by some personal secured credit cards, including the Discover it Secured (25.24%).
Financing costs and fees on the Wells Fargo secured business credit card include:
- Introductory APR: None
- Ongoing APR: 17.40% for all cardholders, which will adjust with the prime rate
- Annual fee: $25
- Balance transfer fee: Varies, based on the specific offer you receive
- Foreign transaction fee: None
- Cash advance fee: 4% of the advance; minimum $10, maximum $175
- Late payment fee: $25 on balances less than $100; $39 on balances greater than $100; $50 if your account is delinquent two or more times in the past 12 billing cycles
- Returned payment fee: $29
- Penalty APR: None
Unlike credit cards for new businesses, secured credit cards do not typically offer introductory 0% APRs, and the Wells Fargo Business Secured Credit Card is no different. You’ll pay no foreign transaction fee on purchases made outside the U.S., which is unusual for a secured business credit card. The BBVA Compass Secured Visa Business Credit Card charges 3%.
How to Avoid Paying Interest on the Wells Fargo Business Secured Credit Card
Your payment due date on the Wells Fargo Business Secured Credit Card is up to 25 days after the close of the business cycle when you receive your bill. Pay your balance in full by the due date to avoid interest charges. If you are charged interest, you’ll pay no less than $1. This grace period on payments is identical to what the Capital One Secured Mastercard, a personal secured credit card, offers.
Wells Fargo Business Secured Credit Card Rewards
The Wells Fargo Business Secured Credit Card offers no introductory rewards, but it does offer ongoing rewards. Cardholders get to choose whether they’d like to receive their rewards in the form of points or cash back. Most secured credit cards offer no rewards program.
Introductory Rewards
Like prepaid business cards, the Wells Fargo secured business credit card offers no introductory rewards. Most secured credit cards offer no introductory rewards, but the Discover it Secured, a personal secured credit card, will double your cash back during the first year. This isn’t a traditional introductory offer because it doesn’t require meeting spending requirement during the first few months of account ownership.
Ongoing Rewards
You can choose to receive rewards from the Wells Fargo Business Secured Credit 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
When you choose points rewards, you’ll receive a 10% point credit when you redeem points online. You will pay a $24 redemption fee when you redeem your points for airline tickets. The BBVA Compass Secured Visa Business Rewards card offers a tiered rewards program that offers three times the points for office supply purchases, two times the points at gas stations and restaurants and one times the points for all other purchases.
Wells Fargo Business Secured Credit Card Features
The Wells Fargo Business Secured Credit Card offers several additional benefits. It’sbest benefits include purchase assurance, which provides coverage against theft, and a periodic review to see if you qualify for an unsecured business credit card. The BBVA Compass Secured Visa Business card offers additional features, including travel accident insurance and an auto rental collision damage waiver.
Wells Fargo Business Secured Credit Card Purchase Assurance
Wells Fargo 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.
Wells Fargo Business Secured Credit Card Periodic Credit Reviews
On a periodic basis, Wells Fargo will review your account and recent credit history to see if you qualify for an upgrade to an unsecured business credit card. There is no preset time for when you might qualify. Your eligibility to switch to an unsecured card depends on a number of factors, including your payment history, credit score, and credit utilization ratio. In contrast, Discover it Secured says it will review your eligibility to move to an unsecured card beginning at eight months.
Wells Fargo Business Secured Credit Card Design Studio
You can customize the design of your Wells Fargo Business Secured Credit Card by uploading an image that represents your business to its online studio. The image, which could include your business logo, your storefront or product line, will appear on your secured business credit card. No other major business secured credit card offers this feature.
Adding Wells Fargo Business Secured Credit Card Employee Cards
With the Wells Fargo Business Secured Credit Card, you can request up to nine employee cards. Employee cards, like the master account card, come with a $25 annual fee per card. Most small business credit card issuers ― with the exception of American Express ― charge no fee on employee credit cards, even if the primary card carries an annual fee. Plus, employee cards on the BBVA Compass Secured Visa Business Credit Card are free.
What the Wells Fargo Business Secured Credit Card is Missing
Other secured business credit cards either charge no annual fee or no fee on employee cards, unlike the Wells Fargo Business Secured Credit Card. The BBVA Compass Secured Visa Business Credit Card charges an annual fee of $40, waived the first year. Some personal secured credit cards charge no annual fee like the Capital One Secured Mastercard and Discover it Secured.
Wells Fargo Business Secured Credit Card Reviews
Wells Fargo Business Secured Credit Card reviews are mixed. We found numerous reviewers who said 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 when they improved their credit score, the issuer failed to offer them a chance to graduate to an unsecured business credit card.
How to Apply for the Wells Fargo Business Secured Credit Card
You can apply online for the Wells Fargo Business Secured Credit Card online only if you have an existing relationship with the bank. If you don’t have a relationship, you’ll need to apply in person at a branch. Wells Fargo will examine your credit experience, payment history, cash flow, existing credit obligations, and your current banking relationship. You can check your application status online at Wells Fargo. Learn the process of getting a business credit card to help.
Existing customers can log into their account to check their application status. If you’re not an existing banking customer, you’ll need to provide your last name, date of birth, last four digits of your Social Security number, and the access code Wells Fargo sent to you via email.
How to Login to Your Wells Fargo Business Secured Credit Card Account
Login to your Wells Fargo Business Secured Credit Card account by providing your user ID and password. You can also contact customer service for Wells Fargo business cards at 877-436-4170.
Other Wells Fargo Business Credit Cards
Wells Fargo offers two unsecured small business credit cards that both offer introductory and ongoing rewards. These cards both offer either cash back or points options and are best for small business owners with credit scores above 670. You’ll need to meet the minimum spending requirements to get the most out of these cards.
The other Wells Fargo business credit cards include:
- Wells Fargo Business Platinum Card: This card is best for business owners who can spend at least $1,000 a month on the card; you’ll earn 1.5% cash back or one times the points per dollar spent; when you receive points, earn a 1,000-point bonus when you spend $1,000 in a month
- Wells Fargo Business Elite Card: This card is best for business owners who can spend at least $10,000 per month on the card; you’ll earn 1.5% cash back or one times the points per dollar spent; when you receive points, earn a 5,000-point bonus when you spend $10,000 in a month
Alternatives to the Wells Fargo Business Secured Credit Card
Few issuers offer business secured credit cards. If you can’t qualify for an unsecured credit card, consider a business or personal secured credit card that charges low fees and ongoing APR. Also, keep in mind that not all cards are available nationally.
3 Alternatives to the Wells Fargo Business Secured Credit Card
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