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Compare secured business credit cards

With a cash deposit, a secured business credit card can help you build your credit and grow your company.

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Finding the right business credit card to fund everyday company expenses can be so important. If you have a less-than-perfect credit score, however, your business card options may be limited. A secured business credit card may be your answer as it can help you build or rebuild credit, and even come with some perks.

We compared all secured business credit cards and we narrowed them down based on criteria such as their annual fee, credit limit and rewards. We chose the cards that stood out in one or more of these categories.

Best secured business credit cards

A secured business credit card works just like any other credit card — but to open the card, you must put down a cash security deposit. The amount you deposit determines your line of available credit. Typically, the more money you put down, the higher the line of credit you’ll get with your card — usually 90% to 100% of the deposit amount.

If you’re looking for a secured business credit card, consider starting your search with these products. You might find a card that fits your exact needs, whether that’s rewards, a waived first-year annual fee or high maximum credit limit.

Best for freelancers

Capital One® Secured Mastercard®

Capital One® Secured Mastercard® logo
Finder Rating: 4.4 / 5

★★★★★

Credit recommended (580-669)
Read review
Rates & fees

580
Min. credit score
$0
Annual fee
26.99% variable
Purchase APR
From $49
Min. deposit
The Capital One® Secured Mastercard® isn't technically a business credit card, but it can be a good choice if you run a lean operation. Freelancers and sole proprietors may find it to be a useful product.
Expenses may be tight when you're flying solo. That's why it's helpful to have a chance at paying a low security deposit and a credit-limit increase shortly after you receive your card.
  • No annual fee. When expenses are tight, you can rest easier knowing there's one less fee to pay.
  • Potentially low security deposit. You may be given a $200 credit limit while paying a security deposit of just $49 or $99.
  • Higher credit line with responsible use. When you make your first five monthly payments on time, Capital One raises your credit line. This can be helpful if your business needs a bit more spending power.
Annual fee $0
Minimum deposit required $49, $99 or $200
Purchase APR 26.99% variable
Balance transfer APR 26.99% variable
Recommended minimum credit score 580

Best for high maximum credit limit

Business Edition® Secured® Visa Card

Business Edition® Secured® Visa Card logo
Credit recommended (300-669)
300
Min. credit score
$39
Annual fee
20.24% variable
Purchase APR
n/a
Min. deposit
If you need a high credit limit, the Business Edition® Secured® Visa Card could be a good option. It offers a maximum credit limit of $100,000. Your deposit earns interest, and you're entitled to rebates through Visa SavingsEdge.
  • Credit limit between $2,000 and $100,000. Your security deposit is 110% of your credit limit, with deposits in $50 intervals.
  • Your security deposit earns interest. A security deposit is a drag, but it gets easier when you earn interest on it. First National Bank will send you a deposit agreement with interest information when you apply for the card.
  • Rebates through Visa SavingsEdge. Get discounts automatically when you make purchases with select merchants. Savings are applied automatically as credits to your account.
Annual fee $39
Minimum deposit required N/A
Purchase APR 20.24% variable
Balance transfer APR 20.24% variable
Recommended minimum credit score 300

Best for rewards

Wells Fargo Business Secured Credit Card

Wells Fargo Business Secured Credit Card logo
Finder Rating: 4.1 / 5

★★★★★

Credit recommended (300-579)
Read review
300
Min. credit score
$25
Annual fee
15.15% variable
Purchase APR
n/a
Min. deposit
You can choose to enroll in the Wells Fargo Business Card Rewards Program. When you do, you'll earn cash back on all purchases at a solid rate for a secured credit card.
  • Earn rewards. You can enroll in the Wells Fargo Business Card Rewards Program when you open your account and get 1.5% cash back on all purchases with no annual rewards fee. 1.5% cash back is a solid rate, and it's an excellent deal for a secured card.
  • No foreign transaction fees. This can be helpful if you need to make purchases abroad or at foreign websites.
Annual fee $25
Minimum deposit required N/A
Purchase APR 15.15% variable
Balance transfer APR N/A
Recommended minimum credit score 300

Best for $0 first year annual fee

BBVA Secured Visa® Business Credit Card

BBVA Secured Visa® Business Credit Card logo
Credit recommended (580-850)
580
Min. credit score
$40 ongoing
Annual fee
16.24% variable
Purchase APR
n/a
Min. deposit
For an intro annual fee, consider the BBVA Secured Visa® Business Credit Card. Your annual fee is waived the first year, and you'll pay $40 a year after that. The BBVA Secured Visa® Business Credit Card is quite a good rewards card too, offering elevated points in categories of your choice.
  • No annual fee for the first year. Most secured business cards come with annual fees, and you have the opportunity to try one out with no initial fee.
  • Rewards: 1x points on all purchases. Any rewards at all is a good deal for a secured card. Plus, you'll earn more through BBVA Compass Build Your Own Rewards.
  • BBVA Compass Build Your Own Rewards. Earn 3x points at office supply stores and x points at gas stations and restaurants.
  • Free employee cards. Add employees to your account at no additional cost.
Annual fee $0 intro annual fee for the first year ($40 thereafter)
Minimum deposit required N/A
Purchase APR 16.24% variable
Balance transfer APR 16.24% variable
Recommended minimum credit score 580

Alternatives to secured business credit cards

Before deciding on a secured business card, consider these other options:

  • Personal secured cards.
    These products are more likely to have no annual fees. Most of them make your credit line 100% of your security deposit, instead of just a portion of your deposit as with some secured business cards.
  • Personal unsecured cards.
    Look for providers that consider other factors besides your credit score, such as your personal payment history and cash flow. The Petal® Visa® Credit Card may be one avenue to explore. Note that if your credit is severely damaged, this could still work heavily against you while you apply.
  • Small business loans.
    You may have luck with providers who are willing to consider applicants with damaged credit, such as The Kabbage Card and Fundbox.

How to choose the best secured business credit card

You can narrow down the best card for you by considering these questions:

  • What annual fee do you want to pay?
    Most secured business credit cards have annual fees between $25 and $45. If an annual fee is a big downside for you, consider no-annual-fee options such as the Capital One® Secured Mastercard®.
  • Are you looking for rewards?
    If so, you might like cards such as the Wells Fargo Business Secured Credit Card and BBVA Secured Visa® Business Credit Card. Think about the rewards you might earn, especially in comparison to the card’s annual fee.
  • What security deposit do you want to put down?
    Secured business cards often have high minimum deposits of $500 or more, but also high maximum deposits. If you prefer to put down a larger deposit, cards like the Business Edition® Secured® Visa Card,Wells Fargo Business Secured Credit Card and BBVA Secured Visa® Business Credit Card might be good fits. Otherwise, consider a personal secured card like the Capital One® Secured Mastercard®.
  • How much are you comfortable paying for employee cards?
    You’ll likely pay for additional employee cards. With some products, however — such as the BBVA Secured Visa® Business Credit Card — you can add employee cards at no additional cost.

    What is a secured business credit card and how does it work?

    A secured business credit card is a credit card for business transactions that requires a cash deposit to open. It’s aimed at business owners who have average, poor or no credit. The initial deposit is typically 90% or 100% of the card’s credit line.

    How does a secured business credit card work?

    To open a secured business card, you’ll need to submit an initial security deposit. Because a lender has this deposit as collateral in case you default, you’ll often find that secured products are business cards with easier approval requirements.

    Some cards require you to put down more or less cash than the initial line of credit. Once you’ve made your monthly payments on time, your line of credit can be increased incrementally — usually after 12 months or so.

    Eventually, your credit card company could transition you from a secured to an unsecured card, depending on if you raise your credit score, prove you can make on-time payments each month and spend responsibly. It can also help if you improve your business credit score.

    How do I build my credit score with a secured business card?

    In a nutshell, building credit with a secured business card is simple. It largely revolves around making your card payments on time and keeping your balances low relative to your total credit.

    Doing both of these things indicates to lenders that you can responsibly handle credit and are unlikely to default on your debt. Of course, to prove you’re skilled with credit, you need to be given a chance in the first place. That’s where secured business cards can help — they have more lenient approval requirements than unsecured business cards.

    How do secured business cards differ from secured personal cards?

    There are a few ways secured business cards are different from secured personal cards, including:

    • Business use only.
      As their name implies, secured business cards are for business transactions only. You’ll typically see a clause in your credit card agreement stipulating that you can’t use your card for personal spending. This isn’t necessarily a bad thing, as it’s wise to keep your business and personal expenses separate.
    • Annual fees.
      Secured business cards are more likely to have annual fees — typically around $25 to $40. Meanwhile, there are several great secured personal cards with no annual fees.
    • Spending reports.
      Secured business cards usually come with the ability to generate spending reports online, so you can check which transactions employees make.
    • Establish or build business credit.
      While a secured personal card helps you build your personal score, it doesn’t help your business score. To build the latter, you can open a business credit card.
    • Your credit line might not be 100% of your security deposit.
      You’re more likely to see this situation with secured business cards. For example, your credit line might be merely 90% of your security deposit instead of 100%.

    How is a secured credit card different from an unsecured credit card?

    With a secured credit card, you’ll need to provide an upfront cash deposit. This isn’t required with an unsecured card. Although you can’t use the cash deposit after you open the card, you can usually get it back after you close your account.

    A secured credit card is a great option for a new business owner who can’t qualify for a traditional unsecured card, would like access to a higher line of credit or who needs some time to build their credit score. It’s a strong choice for a business card if you have no credit.

    Why does a secured card require a deposit?

    Secured cards are most commonly used by individuals who don’t have the necessary credit score to open an unsecured card. Because these consumers are seen as more likely to default on their debt, issuing banks use the cash deposit as protection against missed payments. Some providers allow your deposit to earn interest in a holding account.

    Why does your business need a credit card?

    Using a business credit card has many benefits. It makes it easier to separate your personal and business expenses. It can make accounting and expense tracking simpler and cleaner. You might also reap rewards for spending, such as earning points or cash back.

    Some business cards also offer benefits specific to business owners, like Wi-Fi when traveling or extra cash back on office supplies.

    Depending on your line of credit, you could make larger purchases upfront to get your business running. Use your credit as a revolving operating loan during business launch or lean times.

    What fees does a secured business card have?

    • Security deposit. Consider what you want your credit limit to be and make sure you have that amount available to open the card.
    • Annual fee. Some cards will waive this fee for the first year.
    • Per-card annual fees. You could pay an annual fee for each additional card.
    • Late payment, overlimit and returned payment fees. Any of these fees could trigger a penalty interest rate, so check your card’s rate table.
    • Foreign transaction fees. You may be charged a percentage or flat fee for using the card abroad or on foreign websites.

    Pros and cons of secured business credit cards

    Pros

    • Multiple users. Many cards allow you to add several authorized users to the card for business expenses and purchases.
    • Helps you build credit. Many providers of secured business cards report your payment activity to business credit bureaus like Dun & Bradstreet, Equifax and Experian.
    • Rewards. Some secured credit cards offer rewards such as cash back or points on certain purchases.

    Cons

    • Security deposit to access credit. In many cases, the cash deposit needs to be higher than the initial line of credit.
    • Per-card annual fees. More users often means more fees.
    • Slim pickings. Fewer banks offer secured business cards versus unsecured products.
    • High variable interest rates. Secured business cards typically come with higher interest rates than the average APR of around 16%.

    How to apply for a secured business credit card

    To apply for a secured credit card for your business, do the following:

    1. Apply online or at your bank. You will most likely need to fill out a personal guarantee for the card, even though it’s a business card. This makes you personally responsible for the card’s balance. Have your Social Security number ready, along with your company’s federal tax ID.
    2. Bring financial documents. These might include revenue figures, a financial reference and your banking information.
    3. Submit corporate W-9 info. Sign a substitute for your company’s W-9 or submit your W-9 paperwork.

    What if I don’t want to get a secured business card?

    If you’re not sure a secured business card is right for you, consider looking for a business loan. There are many kinds of business loans, including:

    • Term loan
    • Line of credit
    • SBA loan
    • Equipment financing
    • Vehicle financing
    • Invoice factoring
    • Invoice financing
    • Merchant cash advance

    What’s next?

    After you get your secured business card, focus on making your monthly payments on time and in full to prove to the credit card bureaus that you’re a reliable customer.

    As you continue to use your card, your provider might periodically review your account to see if you’re eligible for an upgrade to an unsecured credit card. You can also call the company and request a credit account review.

    In time, as you build your credit, you might qualify for excellent unsecured business credit cards.

    Compare secured business cards

    Name Product Rewards Purchase APR Annual fee
    Capital One® Secured Mastercard®
    N/A
    26.99% variable
    $0
    This secured consumer credit card can help small business owners and freelancers build credit before applying for a business credit card.
    Business Edition® Secured® Visa Card
    Business Edition® Secured® Visa Card
    N/A
    20.24% variable
    $39
    Request your own credit limit between $2,000 and $100,000 when you apply, subject to credit approval.
    Wells Fargo Business Secured Credit Card
    1.5% cash back on all purchases
    15.15% variable
    $25
    Earn 1.5% cash back on all purchases.
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