Wells Fargo Business Secured Credit Card review June 2018 | finder.com

Wells Fargo Business Secured Credit Card review – June 2018

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If you’re looking to establish or rebuild your business credit score, this card may be an option.

30-second take

  • Get this card if you have little-to-no business credit history, or if you want to rebuild your business credit score.
  • Pick something else if you want higher cashback rewards on all purchases or an intro APR on purchases and balance transfers.
  • Apply even if you have poor credit history or none at all.
Product NameWells Fargo Business Secured Credit Card
APR for Purchases ( Purchase Rate )11.90% variable
Annual fee$25
Cash Advance Rate20.74% variable
Card TypeMastercard
Interest Free Period
The interest-free period on purchases is the period or number of days you do not have to pay interest on your card purchases. You will be charged interest either from the day you make a purchase or from the statement date, unless you pay the closing balance in full by the due date (or within the interest-free period) on your statement.
Up to 21 days
Foreign Currency Conversion Fee (MC)
Foreign currency conversion fees are charged when you make a transaction that is converted by a credit card network, such as MasterCard, Visa or American Express, from Australian dollars to a foreign currency. You’ll also incur a currency conversion fee if you make a purchase or obtain a cash advance in Australian dollars while overseas or shopping online with a foreign merchant or financial institution.
0% of transaction value
Minimum Credit ScorePoor (Below 660)
Minimum Age18 years of age
Min credit limit
This is the lowest credit card limit that you can request. It is possible to apply for a higher credit card limit but not a lower one than this figure.
$500
Max credit limit
This credit limit may not be issued to you immediately on application. This is the maximum credit limit for this card which must be applied for or offered to you after you are approved and have already opened the account.
$25,000
Annual fee$25
Rewards ProgramWells Fargo
Bonus Points on Sign-up1,000
Rewards Points per $ spent (VISA/MC)1
Points ExpiryNever

The basics

Wells Fargo Business Secured Credit Card is aimed at businesses that have no credit history or those that want to rebuild their credit score. Since this is a secured card, you’ll need to make a deposit between $500 and $25,000 to use as a line of credit. This deposit doesn’t earn interest.

After a while, you may be able to upgrade to an unsecured card if you pay your balance in full every billing cycle. Making timely payments of the full amount also helps you build your business’s credit score. Wells Fargo doesn’t give a specific time frame for when you might be upgraded to an unsecured card, but notes that it will periodically review your account and your recent credit history to see if you qualify.

You can choose to enroll in the Wells Fargo Business Secured Credit Card Program and can select between cash back or reward points:

  • Cash back. Earn 1.5% cash back per $1 spent on purchases. You’ll automatically receive the cash back as credit to your account or to your checking or savings account each quarter.
  • Reward points. Earn 1 reward point per $1 spent on purchases, plus an additional 1,000 points whenever you spend $1,000 in a month. You can redeem your points for gift cards, merchandise, airline tickets and more.

Both options include no annual rewards program fee for the life of the account if you apply by June 30, 2018.

How much should you put down as a deposit?

If you plan to put down $25,000 as a deposit for your credit line but your monthly expenses aren’t as high as that, you may want to think again. Let’s look at what would happen if you put this amount in a high-yield savings account instead.

Take Synchrony Bank’s high-yield savings account that offers 1.65% APY. If you put $25,000 in this account instead, your money would earn $412 in a year. A great way to avoid these missed earnings is to deposit enough money on your credit card to pay for your monthly purchasing needs and then save the rest in a high-yield savings account.

The perks

  • Rewards program.

    When you open an account, you can enroll in the Wells Fargo Business Card Rewards® Program and select one of two bonus programs:

  • Cash back. Earn 1.5% per $1 spent on purchases.
  • Reward points. Earn 1 point per $1 spent on purchases, plus 1,000 points every month you spend $1,000 or more. If you apply by June 30, 2018, you won’t pay annual fees for the rewards program for the life of your account.
  • Establish or rebuild your credit score.

    You don’t need to have a credit history to apply for the Wells Fargo Business Secured Credit Card. This will allow you to build your business credit score or to rebuild your own if you’ve had credit difficulties in the past. Keep in mind that you’ll need to deposit funds in order to use them as a credit line, and these funds don’t collect interest.

You’ll also like

  • Online banking.

    You can manage payments, spending, transfers and expenses through your online account.

  • Zero liability protection.

    This is a built-in feature to make sure you won’t be liable for any unauthorized transactions.

  • 0% foreign transaction fees.

    Don’t hesitate to use this card abroad, as it doesn’t have any foreign transaction fees.

  • Customize your card design.

    With Wells Fargo Card Design Studio®, you can design your own cards by using your company logo or a photo that promotes your business.

What to watch out for

  • No intro purchase APR.

    The Wells Fargo Business Secured Credit Card has no intro APR on purchases, meaning you start with an APR of 11.90% variable + prime rate right off the bat.

  • Most fees aren’t listed.

    Late payment, returned check and similar fees aren’t given outright.

Consider other cards if…

  • You want a balance transfer card.

    If you’re looking for a similar secured card that requires little-to-no credit history or allows a low business credit score, you can check out BBVA Compass Secured Visa® Business Credit Card. It has a variable APR of 17.74% on balance transfers, but no intro period.

  • You want higher cashback rewards.

    Business Advantage Cash Rewards Mastercard® credit card by Bank of America may be a better choice for your business if you have good credit and spend a significant amount on gas or office supplies. You can earn 3% cash back at gas stations and office supply stores up to $250,000 annually and 1% after that, 2% cash back at restaurants and 1% on all other purchases.

  • You want an intro APR on purchases.

    The Blue Business℠ Plus Credit Card from American Express offers a 0% intro APR on purchases and balance transfers for the first 15 months, and an APR of 12.99%, 16.99% or 20.99% variable after that. Keep in mind that to successfully apply for this card, you should probably have a high credit score.

Compare business credit cards

Rates last updated June 25th, 2018
Name Product APR for Purchases ( Purchase Rate ) Intro Purchase APR Intro Purchase APR Period Annual fee Product Description
Applied Bank® VISA® Business
23.99% variable
Turn your hobby or passion into a business with a new Applied Bank® VISA® Business card! This Visa Business card is perfect for sole proprietors and entrepreneurs.
Apply now Read review
Ink Business Cash℠ credit card
14.74% to 20.74% variable
0%
12 months
$0
$500 bonus cash back after you spend $3,000 on purchases in the first 3 months after account opening
Ink Business Preferred℠ credit card
17.49% to 22.49% variable
$95
80000 bonus points after you spend $5,000 on purchases in the first 3 months after account opening. That's $1,000 toward travel rewards when you redeem through Chase Ultimate Rewards®
Spark® Classic for Business
24.49% variable
$0
Get the credit you want for your business, and unlimited 1% cash back on every purchase, every day
Spark® Miles Select for Business
14.49%, 18.49% or 22.49% variable
0%
first 9 months
$0
Unlimited 1.5X miles per dollar on every purchase, every day
Spark® Miles for Business
18.49% variable
$0 annual fee for the first year ($95 thereafter)
Unlimited 2X miles per dollar on every purchase, every day
Spark® Cash Select for Business
14.49%, 18.49% or 22.49% variable
0%
9 months
$0
Unlimited 1.5% cash back on every purchase, every day.
Capital One® Spark® Cash for Business
18.49% variable
$0 annual fee for the first year ($95 thereafter)
Unlimited 2% cash back from Spark Cash could mean thousands of dollars each year going back into your business. No minimum to redeem.
Marriott Rewards® Premier Business credit card
17.49% to 24.49% variable
$0 annual fee for the first year ($99 thereafter)
75000 Bonus points after you spend $3,000 on purchases in your first 3 months from your account opening with your Marriott Rewards Premier Business credit card.
United MileagePlus® Explorer Business Card
17.49% to 24.49% variable
$$0 intro annual fee for the first year, then $95
50000 bonus miles after you spend $3,000 on purchases in the first 3 months your account is open.
Southwest Rapid Rewards® Premier Business Credit Card
17.49% to 24.49% variable
$99
Earn 2x points on Southwest® purchases and points on all other purchases. Plus 6,000 anniversary bonus points.
CitiBusiness® / AAdvantage® Platinum Select® World Mastercard®
17.24% to 25.24% variable
$0 annual fee for the first year ($95 thereafter)
Earn 60000 American Airlines AAdvantage® bonus miles after you spend $3,000 in purchases within the first 3 months of account opening.
The Business Platinum Card® from American Express
19.99% variable
$450
Earn 50000 Membership Rewards® points after you spend $10,000 and an extra 25,000 points after you spend an additional $10,000 all on qualifying purchases on the Business Platinum Card within your first 3 months of Card Membership.
SimplyCash® Plus Business Credit Card from American Express
13.99%, 18.99% or 20.99% variable
0%
9 months
$0
Earn cash back with buying power to help pay for business needs.

Compare up to 4 providers

What size business is the Wells Fargo Business Secured Credit Card good for?

This card is best suited for small businesses that have no credit history or for businesses that want to rebuild their credit score.

What should I know before I apply?

Since this is a secured card, you can apply for the Wells Fargo Business Secured Credit Card even if you don’t have a credit history or have a bad credit score.

You’ll have to provide information about yourself and your business when you apply, including:

  • Business name and address
  • Date when business was established
  • Federal Tax ID, also known as Employment Identification Number (EIN)
  • Ownership type
  • Number of owners
  • Annual revenue
  • Business owner’s personal information

Information that Wells Fargo will take into consideration when processing your application:

  • Credit experience and payment history
  • Cash flow and existing credit obligations
  • Current relationship with Wells Fargo

Always consider your options and your financial situation before you apply for a credit card.

How to apply for the Wells Fargo Business Secured Credit Card?

  1. Go to the Wells Fargo website.
  2. Click Small Business in the top navigation bar.
  3. Hover over Loans and Credit, and then select Business Credit Cards.
  4. Scroll down to the Wells Fargo Business Secured Credit Card and click Apply Now.
  5. To apply online, you’ll need to have one applicant who is a Wells Fargo Online customer, otherwise you’ll need to make an appointment at a Wells Fargo branch.
  6. Complete the application form with all the required information on your business and the employee who will receive the card.
  7. Review your application and submit it.
    Wells Fargo Business Secured step 1

How long will it take to get my Wells Fargo Business Secured Credit Card?

Upon approval, you’ll get your Wells Fargo Business Secured Credit Card in 7 to 10 days via mail.

I got the card. Now what?

  • Enroll in the optional Wells Fargo Business Rewards® Program. In case you didn’t apply for the rewards program during your application process, you can do so by calling 1-800-225-5935. You can choose between earning reward points or cash back on all your purchases.
  • Use the online management tools. Once you get the card, you can sign in to your Wells Fargo Business Online account and manage your payments, spending or transactions.
  • Set up automatic payments. You can pay your credit card bill with automatic payments using Wells Fargo Business Online. Alternatively, you can enroll for the automatic payments by calling 1-800-225-5935.
  • Contact customer service. For general banking questions, you can call Wells Fargo at 1-800-225-5935. For online banking and bill payment issues, you can call customer support at 1-800-956-4442.

Bottom line

Don’t let a lack of a business credit history or bad credit stop you from getting a business credit card. The Wells Fargo Business Secured Credit Card may be a solution to your business’s credit needs.

Before you apply, compare business credit card providers to find the best card that suits your needs.

Frequently asked questions

Images: wellsfargo.com

Kliment Dukovski

"Kliment Dukovski is a writer for finder.com. He specializes in global financial markets and personal finance, with a focus on credit cards. His main goal is to deliver honest and accurate information that will help you make the right financial decision. When he's not writing about finance-related subjects he writes sci-fi stories."

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