A credit card can be a useful business tool that makes it easier to keep track of your business expenses or manage gaps in cash flow. However, if you have bad credit or have a limited credit history, then it can be difficult to qualify for most small business credit cards. Getting one with a rewards program can be even more challenging.
The Wells Fargo Business Secured Credit Card, is an exception. It offers cardholders a credit card that you can use to make purchases and build credit, so long as you can make a refundable security deposit. It also features a cash back rewards program, and has a relatively low annual fee of $25.
But like a debit card or credit card, you can use your secured credit card wherever Visa is accepted. And when used responsibly, a secured credit card can help you improve your credit score, making it more likely that you’ll be approved for unsecured cards in the future. However, if you have good or excellent credit, you’ll want to consider one of the standard, unsecured Wells Fargo business credit cards, like the Business Platinum or Business Elite card.
Wells Fargo Business Secured Credit Card Review Details
As a secured credit card, you’ll have to submit a refundable security deposit before your account can be opened. This deposit can range from $500 to $25,000, and the amount you submit will become the card’s line of credit.
If you don’t have at least $500 in cash to deposit, you can also choose to transfer security deposit funds directly from your Wells Fargo checking account or savings account. The funds, however, are not used to pay down any debt. You’ll still be required to make monthly payments on the card should you make any purchases.
Unlike most secured credit cards, the Wells Fargo card offers not just a rewards program, but your choice of earning either cash back or reward points.
Cash Back Rewards
If you choose the Cash Back option, you can earn 1.5% cash back on every dollar spent. Cash Back rewards are redeemed automatically at the end of each quarter (March, June, September, and December) via account credits or your existing Wells Fargo checking or savings account. This is a very strong rewards rate, but there is no sign-up bonus offered.
If you choose the Rewards Points option, then you’ll earn one point per dollar spent. And though that may be slightly lower than the 1.5% cash back option, you’ll also earn an additional 1,000 bonus points when you spend $1,000 during any given billing cycle. Points can be redeemed for gift cards, merchandise and airline tickets, plus you can earn a 10% point credit when you redeem your points online. However, tickets must be redeemed through the Rewards Service Center and a $24 fee will be assessed. Even with the fee, however, this can be a good deal.
The Wells Fargo Business Secured credit card also offers several cardholder perks and benefits, including:
- Financial management resources through Wells Fargo Business Online
- Online bill pay
- Automatic credit card bill payments to help you avoid late fees
- Overdraft protection for linked Wells Fargo accounts (an Overdraft Protection Advance Fee may be charged in certain circumstance)
- Access to the Card Design Studio, which gives cardholders the option to the look of their credit card.
- Up to ten employee cards.
- Ability to use the card for balance transfers, though the balance transfer APR may be higher than that associated with other business cards. And like other cards you’ll pay a balance transfer fee.
Rates and Fees
The Wells Fargo Business Secured Credit Card offers approved applicants access to between $500 and $25,000 of available credit.. When used responsibly, this can be a great starter card that could help you build or establish business credit, with no annual fee and no foreign transaction fees. But like most cards, there are fees for cash advances and overdraft protection advances. If you choose to carry a balance, the interest rates applied are Prime + 11.90% on purchases and Prime + 20.74% on cash advances. As of this writing, the Prime rate is 3.25%, so that works out to a rate of 15.15% APR for purchases and 23.99% APR for cash advances.
Also, existing Wells Fargo Business Secured Credit Card customers may have the opportunity to upgrade to an unsecured credit card account over time. It’s also convenient to have both a checking account and a credit card account with the same financial institution. Eligibility is determined by a variety of factors including your payment history, credit utilization, and FICO score. Upgrades are at the discretion of Wells Fargo, who periodically reviews card accounts to determine eligibility.
The Wells Fargo Business Secured Credit Card represents a great option for business owners who want the benefits of a rewards credit card but lack the necessary credit score. It’s also a great product to help build your credit. By examining the features and benefits of this unique business credit card, you can decide if it’s right for you.
Frequently Asked Questions
Can a Business Get a Secured Credit Card?
Yes. Business owners with poor or non-existent credit can apply for a secured credit card through select providers, including Wells Fargo.
Does the Wells Fargo Business Secured Credit Card Report to the Credit Bureaus?
The Wells Fargo Business Secured Credit Card reports card activity to the three major consumer credit bureaus — Experian, Equifax, and TransUnion.
What is a Business Secured Credit Card?
A business secured credit card is a line of credit specifically designed for applicants with poor, bad credit or non-existent credit. If you’re applying for a business secured credit card, then you’ll need to make a refundable security deposit. The amount of your deposit will determine your card’s credit limit. You’ll still have to make regular payments and the deposit will only be used if you default.
When used responsibly, a secured credit card could help you improve or build credit. Conversely, late payments or over-utilization can hurt your credit score. So it’s important to monitor usage and make timely payments.
Does Wells Fargo Offer Secured Credit Cards?
Wells Fargo offers numerous business credit cards, including the Wells Fargo Business Secured credit card. This card allows you to do many of the same things that an unsecured credit card does, including earn rewards, make balance transfers and cash advances and request employee cards.
What are Wells Fargo’s Business Credit Card Approval Requirements?
Wells Fargo doesn’t release specific information about their credit card qualifying and approval requirements. But, like other card issuers, Wells Fargo considers numerous factors before making their decision, and you can be approved even if you have a new business. Your personal credit score will play a significant role in their decisions.
If you have excellent credit, you may be eligible for a standard, unsecured card like the Wells Fargo Business Platinum card or the Wells Fargo Business Elite card. However, even if you have serious credit problems, you will likely be approved for the Wells Fargo Business Secured card.
*All information about the Wells Fargo Business Secured Credit Card credit card has been collected independently by Nav. This card is not currently available through Nav. To see what business credit cards are available, please visit the Nav Credit Card Marketplace.
Other Business Credit Card Options to Consider
The best credit cards for your needs will offer the right combination of features and benefits, with the fewest fees possible. However, there are few credit card issuers that offer secured cards for small business use.
First National Bank Business Edition® Secured Visa® Card
First National Bank offers a business secured card with a credit limit between $2,000 and $100,000, in multiples of $50. Your security deposit must be 110% of the credit limit that you want, however you will earn interest on the deposit. There is an annual fee of $39.
*All information about the First National Bank Business Edition® Secured Visa® Card credit card has been collected independently by Nav. This card is not currently available through Nav. To see what business credit cards are available, please visit the Nav Credit Card Marketplace.
Union Bank® Business Secured Visa® Credit Card
Union Bank offers a secured card for small business owners with a limit of as little as $500 and as much as $25,000. It also has a low APR of 13.99%. Variable. There’s a $30 annual fee for this card.
*All information about the Union Bank® Business Secured Visa® Credit Card credit card has been collected independently by Nav. This card is not currently available through Nav. To see what business credit cards are available, please visit the Nav Credit Card Marketplace.
Theis a personal credit card, not a business card. However, it helps you build your credit when used responsibly. And unlike a debit card, it helps build your credit history with monthly reporting to all three major credit bureaus. You can open an account with a deposit of between $200 and $2,500, which becomes the size of your credit line. It features a standard APR of with no annual fee. It also offers you a free monthly FICO score.