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This article was last updated Mar 10, 2020. Terms and conditions may have changed. For the most accurate information, please consult the issuer website.
If you’re a small business owner, the right business credit card can help you earn rewards, track spending and build business credit. But if you’ve got a less-than-stellar credit history, it can be hard to find a business card you’ll get approved for.
That’s where the Wells Fargo Business Secured Credit Card comes in. It’s a secured card, meaning you have to submit a deposit for the amount you want for your credit line. And the card offers the option to earn either cash back or rewards points.
- Wells Fargo Business Secured Credit Card pros
- Additional Wells Fargo Business Secured Credit Card benefits
- Wells Fargo Business Secured Credit Card cons
- Compare it with the Capital One® Spark® Classic for Business
- Is the Wells Fargo Business Secured Credit Card right for you?
Wells Fargo Business Secured Credit Card pros
Rewards. 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. Having the option to choose between cash back or points is a great feature.
If you choose to earn cash back, any cash back you earn will automatically be distributed each quarter (March, June, September, and December). You can opt to get it as a statement credit to your account or as a deposit to an eligible checking or savings account.
For those who choose to earn points, redemption options include:
- Airline tickets
- Gift cards
The value of the points redeemed varies on the award chosen. One option, according to Wells Fargo, is to get 1.5 cents per point for travel redemptions with no blackout periods.
There is also a 10% point credit when you redeem your points online, and there are opportunities to earn bonus points or discounts when you shop with retailers in Wells Fargo’s Earn More Mall.
Be aware that to use your points for air travel, tickets must be redeemed by calling the Wells Fargo Rewards Service Center or online at wellsfargorewards.com — and you’ll be assessed a $24 fee for each ticket redemption.
Cardholders can switch between earning cash back and points at any time, according to Wells Fargo.
Flexible deposit amount. You can deposit anywhere from $500 to $25,000, and the amount you choose to deposit will become your credit line.
You get a chance to upgrade to an unsecured card. Wells Fargo will periodically review your account and recent credit history to see if you’re eligible to be upgraded to an unsecured business card and get your deposit back. However, note that upgrades are not guaranteed, and there’s no set time frame for when that transition might happen.
You’ll build business credit history with this card. Wells Fargo will report payment and usage behavior on this card to the Small Business Financial Exchange. However, be aware that this card won’t help you build personal credit history, as its usage is not reported to the three main consumer credit bureaus (Equifax, Experian, and TransUnion).
Additional Wells Fargo Business Secured Credit Card benefits
No foreign transaction fee. The foreign transaction fee on the Wells Fargo Business Secured Card is $0. That’s a good thing if you travel abroad for business — you won’t have to worry about paying an extra fee on top of every purchase you make when outside the U.S.
Wells Fargo Business Secured Credit Card cons
There’s an annual fee. You’ll pay $25 per card to carry the Wells Fargo Business Secured Credit Card, and up to 10 employee cards can be issued. There are other small business cards that don’t charge an annual fee and will issue employee cards for free.
No sign-up bonus. If your business is looking to earn rewards with a generous sign-up bonus, you won’t be able to do that with the Wells Fargo Business Secured Credit Card.
Compare it with the Capital One® Spark® Classic for Business
Many small business credit cards require good or excellent credit. The Capital One® Spark® Classic for Business is unique in that it is accessible to applicants with fair/limited. Here’s how it compares to the Wells Fargo Business Secured Credit Card:
|Wells Fargo Business Secured Credit Card||Capital One® Spark® Classic for Business|
|Credit needed||Applicants should have at least poor or fair credit.||Applicants should have at least fair/limited credit.|
|Rewards||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.||1% cash back on every purchase.|
|Annual fee||$25 per card.||$0|
|Foreign transaction fee||$0||None|
|Regular purchase APR||Prime + 11.90%||24.49% (variable)|
However, secured cards tend to be easier to be approved for than unsecured cards for applicants with less-than-stellar credit — so if you’re concerned that something in your credit history might prevent you from getting the Capital One® Spark® Classic for Business, the Wells Fargo Business Secured Credit Card may be a solid choice.
Of course, one key difference between the two is that the Capital One® Spark® Classic for Business is an unsecured card, so no security deposit is required. If your business doesn’t have money that can be tied up in a deposit, and your credit is in the Fair/Limited range, the Capital One® Spark® Classic for Business might be the better option.
Is the Wells Fargo Business Secured Credit Card right for you?
If you have less-than-stellar credit and are looking for a credit card to help your business manage cash flow and earn rewards, the Wells Fargo Business Secured Credit Card could be a good choice. It doesn’t have a sign-up bonus offer, but it does have a rewards program, and it comes with the possibility of eventually upgrading to an unsecured business credit card.
The information related to the Wells Fargo Business Secured Credit Card has been independently collected by CompareCards and has not been reviewed or provided by the issuer of this card prior to publication.