Home » Top Picks » Best Secured Business Credit Card for Small Business Owners

Best Secured Business Credit Card for Small Business Owners

Best Secured Business Credit Card for Small Business Owners

*Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any credit card issuer. This site may be compensated through a credit card issuer partnership.

This article was last updated Mar 27, 2020. Terms and conditions may have changed. For the most accurate information, please consult the issuer website.

For small business owners looking for a way to manage cash flow, track expenses and employee spending and, perhaps, earn rewards, business credit cards can be an incredibly useful tool. But if your credit score is less than stellar, you might have trouble qualifying for many small business cards.

That’s where secured business cards come in — they require a security deposit (typically in the amount that you want for your credit limit), and they can help you build or rebuild your credit history. Through a review of cards offered on CompareCards, as well as from top issuers, we’ve compiled a list of the best secured business cards — and one unsecured — that can help you do that.

Best overall: Wells Fargo Business Secured Credit Card

The Wells Fargo Business Secured Credit Card gets the top spot on this list because it offers a low annual fee, a competitive flat rewards rate and the opportunity to upgrade to an unsecured business card.

This card offers a credit limit ranging from $500 to $25,000, depending on the amount that you deposit, and charges an annual fee of $25 per card. This is a lower annual fee than the other secured business cards on our list — as long as you just need one card. If you need more than that, $25 per card can add up. A maximum of 10 employee cards can be issued.

There’s also the opportunity to upgrade to an unsecured business card with Wells Fargo after demonstrating responsible behavior on your secured card. (Note that the upgrade is not guaranteed, and there’s no set time frame for when the review might happen.)

Finally, the card offers cardholders a choice between earning cash back or points. Earn 1.5% cash back on every $1 spent OR 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. You can switch between earning cash back and points at any time, according to Wells Fargo.

Best for office supplies, gas and restaurants: BBVA Secured Visa® Business Credit Card

If your business is looking to offset expenses on regular office supply purchases, gas and dining, the Secured Visa® Business Credit Card from BBVA lets cardholders earn 1 point for every $1 in purchases, earn 3x points at office supply stores, and 2x points at gas stations and restaurants. Points can be redeemed for account credits and gift cards, and are worth 1 cent each. You must have a minimum of 2,500 points for a redemption.

The Secured Visa® Business Credit Card requires a minimum security deposit of $500, and you can make deposits at any time in $100 increments. The annual fee is $0 intro annual fee the first year, then $40 after that. Employee cards are free.

This card’s downfall is its geographic restriction: It is only available to business owners located in Alabama, Florida, Texas, Arizona, Colorado, California, and New Mexico.

Best for a high credit limit: First National Bank of Omaha Business Edition® Secured® Visa Card

The First National Bank of Omaha Business Edition® Secured® Visa Card is an excellent option for business owners who have a large amount of money available to deposit and want a high credit limit on their secured business card. The card offers a credit limit ranging from $2,000 to $100,000 (in multiples of $50) and charges a $39 annual fee.

However, where the card falls short is that it requires a deposit that’s 110% of your credit limit. In other words, to get a credit limit of $2,000, you’d have to deposit $2,200. It could also be considered a downside that the starting limit is so high — other secured business cards offer credit limits starting at $500, which is more accessible to applicants without a lot of cash on hand.

A nice perk of this card is cellphone insurance. Pay your monthly cellphone bill with this card and receive automatic protection at no extra cost.

Best unsecured business card for fair/limited credit: Capital One® Spark® Classic for Business

While not a secured card, the Capital One® Spark® Classic for Business is aimed at business owners with fair/limited credit. This means if you qualify, you can save money by not having to put down $500 or more in a security deposit. Plus, the card’s annual fee is $0, so you save there, too. The Capital One® Spark® Classic for Business does carry a high APR of 24.49% (variable), so this isn’t a card you want to carry a balance on from month to month.

However, this card does allow you to earn 1% cash back on every purchase. In addition, employee cards are free.

Secured business credit card FAQ

Can I get a business credit card with bad credit? If you have less than stellar credit, you’re likely to struggle to get approved for a business card. However, you might have better luck with a secured business card, as the deposit you’re required to put down offers the issuer security in the event that you don’t pay off what you charge to the card.

Do business credit cards affect my personal credit? In many cases, business credit cards won’t report to your personal credit history. However, if you fall behind in payments, that’s a situation where your business card behavior could be expected to go on your personal credit reports. It’s important to realize that you as the business owner are ultimately responsible for guaranteeing debt on your business card — so use it wisely and always pay on time.

How can I improve my business credit score? There’s no shortcut — rebuilding your business credit takes time and good behavior. Making sure to always pay on time is key. Take a look at our guide on how to recover from a business credit score drop for more detailed tips.


Recommended Posts: