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Looking for a new credit card? We’re here to help. These are the best secured business cards on the market, according to our research and data crunching.
Secured credit cards are available to business owners with personal credit ratings below 580. Secured cards often have credit limits equivalent to the amount of money you put down in a collateral account during the application process. The best credit cards allow cardholders to establish credit without paying excessive fees.
The following are the best-secured business credit cards:
Wells Fargo Business Secured Card; the best secured business credit card
- Option 1: Earn 1.5 percent cash back on every dollar spent.
- Option for Reward Points: Earn 1 point for every $1 spent, plus 1,000 additional points if your firm spends $1,000 or more in a monthly billing period.
- There is no yearly cost for the rewards program.
- A credit line of $500 to $25,000 is available.
- There is no risk of responsibility.
Pros
- With a credit score of less than 580, approval is possible.
- Fixed-rate cash back or points rewards are your options.
Cons
- A security deposit of at least $500 is required.
- Has a yearly charge
- Purchase Assurance: Wells Fargo will repair, replace, or reimburse you for items that are damaged or stolen within 90 days of purchase.
Why we like it:
The Wells Fargo Business Secured Card is the only countrywide business secured credit card. If you want to establish your company credit while paying a modest yearly fee, this is the card to choose. Depending on the amount you deposit into a collateral account, businesses may get a credit limit ranging from $500 to $25,000.
You may also earn rewards with this card, and you can select between cashback and points. On every transaction, you may receive 1.5 percent cashback or one point for every $1 spent. When your organization spends $1,000 in any monthly billing period, you may earn 1,000 additional points if you select points.
Although this card has the lowest APR, you should always try to pay off your debt each month. Paying on time will help you avoid paying interest and enhance your company credit score.
The BBVA Compass Secured Visa®; the best for earning the most points.
- Low $40 a yearly fee waived the first year
- Your available credit is equal to 90% of the sum in your savings account.
- Earn one point for every dollar spent, plus receive three times the points at office supply shops and two times the points at petrol stations and restaurants.
- Online account management services
- Employee cards are provided free of charge.
Pros
- There is no need to examine your credit history.
- A yearly fee is waived for the first 12 months
Cons
- Alabama, Florida, Texas, Arizona, Colorado, California, and New Mexico are the only states where it is accessible.
- Your credit limit will be 90% of your security deposit amount.
- Purchase protection: If your qualifying products are stolen or damaged during the first 90 days of purchase, BBVA Compass will replace, repair, or refund you.
- Travel accident insurance: When you use your business credit card to pay for transportation, you’ll get up to $500,000 in coverage for travel incidents.
- Auto rental collision damage waiver: When you rent an eligible automobile with your BBVA Compass Secured Visa® Business Card Rewards card, you’re insured for damage caused by accident or theft.
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.
There’s a minimum opening deposit of $500, and you can increase your limit and make deposits at any time in $100 increments. Your credit limit will be 90% of your security deposit amount, 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.
Business Edition® Secured® Visa Card: Best for High Credit Limits
- When you apply, you may request a credit limit2 of $2,000 to $100,000 (multiples of $50), subject to credit approval.
- Subject to credit approval, a security deposit of 110 percent 2 of your credit limit, ranging from $2,200 to $110,000 (multiples of $50).
- $39 a yearly fee
- Interest might be earned on your security deposit.
- Purchases and balance transfers have a variable APR of 19.99 percent dependent on the Prime Rate.
- With Visa SavingsEdge®, you may get automatic rebates on purchases made at approved retailers.
- Although citizenship in the United States is not necessary, you must have a valid SSN or ITIN as well as a valid U.S. address.
- View transactions, pay your payment, and view up to seven years of preceding statements all from the comfort of your own home!
Pros
- Credit lines up to $100,000 are available.
- Your security deposit account balance will earn a 0.05 percent annual percentage yield (APY).
Cons
- There are no introductory or continuing bonuses.
- Colorado, Iowa, Illinois, Kansas, Nebraska, South Dakota, and Texas are the only states where it is accessible.
- Automatic discounts are available on purchases made at participating retailers. Rebates will be credited to your account as statement credits.
- Protection for the principal line and up to the first four additional lines specified on your statement is provided against damage and theft. The policy covers up to $1,000 every 12-month period or $600 for each claim, with a $50 deductible.
Why We like it:
On our list, the First National Bank of Omaha Business Edition® Secured® Visa Card has the most secured credit limits. You may set your own credit limit in increments of $50 between $2,000 and $100,000, subject to credit approval. In addition, your security deposit account balance will receive a 0.05 percent annual percentage yield (APY).
While this card has the greatest credit limits, it does not give any benefits and is only available to regional businesses. Colorado, Iowa, Illinois, Kansas, Nebraska, South Dakota, and Texas are the only Western and Midwestern states where it is accessible.
Bento for Business Prepaid Card: Best for No Credit Check
Pros
- The first two cards are completely free.
- Manage staff spending with ease.
- Purchase safeguards and additional card features
Cons
- If you have more than two cards, you will be charged a lot of money.
- Funds must be deposited.
- Will not assist in the development of a 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.
Bento is a prepaid business debit card that works in the same way as a secured business credit card. It does not need a credit check, and your credit limit is determined by the amount you deposit. Bento is ideal for companies who want to keep track of employee spending without having to use a small business credit card.
Bento offers two free cards per account. If you need at least three cards, the cost per month 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 transactions, new card issuance, setup, or load fees.
Choose another card from our list if you don’t have cash on hand and want to develop your credit. Because Bento for Business isn’t a credit card, you’ll need a lot of cash to fuel your purchases. It also doesn’t disclose activity to credit bureaus, so you won’t be able to enhance your credit score by using it.
What Is a Secured Business Credit Card?
Small company owners with personal credit ratings of less than 580 may apply for a secured business credit card. They may assist company owners in improving their personal and commercial credit ratings by using a line of credit responsibly. A credit line is often the same as a cash deposit in a collateral account.
Tip: A prepaid debit card, which does not need a credit check, is an option for company owners. Prepaid debit cards help company owners to control employee spending, but unlike business secured credit cards, prepaid cards do not report to credit agencies, so you won’t be able to develop personal or business credit.
What Is a Business Secured Credit Card and How Does It Work?
A secured company credit card’s credit limit may range from a few hundred dollars to $100,000, depending on how much money you put into a collateral account. Your available credit will decrease when you use your card to make transactions. Paying down all or part of your monthly charge will restore your credit line. Making on-time payments can help you improve your credit score, allowing you to apply for an unsecured business credit card like Chase Ink Business CashSM.
How We Decided Which Business Credit Cards Are the Most Secure
We sought company-secured credit cards that provide a low-cost option for customers to build credit and ultimately move to an unsecured card. The majority of them aren’t worth recommending since they impose exorbitant costs, such as setup and credit line expansion fees. The ones we’ve listed here, on the other hand, have low card fees and large credit limits.
Conclusion
You should know your credit score before applying for a business card. You can be a suitable candidate for a secured business credit card if your credit score is below 580. To qualify, you’ll need to put down a security deposit, and your credit line maybe $1,000 or less. These cards, on the other hand, may assist you in establishing credit in order to qualify for an unsecured business credit card.
