Best Secured Business Credit Cards of 2024
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Secured business credit cards are best for entrepreneurs with personal credit scores below 690. That’s the minimum FICO score needed to get most business credit cards. For business owners who can’t hit that number, a secured card is a solid choice to start building credit in your company’s name.
Secured business cards are somewhat uncommon — and those with top-notch rewards, even more so. After reviewing the available options, we think the Bank of America® Business Advantage Unlimited Cash Rewards Mastercard® Secured credit card is the best choice for most small-business owners.
🏆 Our pick: The best secured business credit card
The Bank of America® Business Advantage Unlimited Cash Rewards Mastercard® Secured credit card has no annual fee and earns unlimited 1.5% cash back on all purchases. It also offers a stepping stone to getting a credit line from a major bank — a big plus for growing businesses.
BofA checks a lot of boxes, but it won’t be right for everyone. For instance, well-established registered businesses could qualify for a corporate card based on their company's financial performance, rather than the applicant’s personal credit history.
Also, if personal credit is what’s pushing you toward a secured business credit card, a secured personal card is a better choice to address that underlying challenge. Those cards will help build or rebuild your own credit score, which can set your business up to tap into unsecured financing in the future.
Why trust NerdWallet
Our guide to secured business credit cards
How we chose the best secured business credit card
NerdWallet rates business credit cards on their overall value. Factors in that evaluation include fees, rewards, bonus offers and other noteworthy perks.
Secured business cards typically aren’t rich with features. Instead, their primary purpose is establishing a trade line for a company and building its business credit. Of course, entrepreneurs can do that by using almost any business credit card responsibility. But unlike most of those cards, secured options extend that opportunity to applicants with thin or poor personal credit (typically considered a FICO score below 630).
With that in mind, we prioritized the following to find the best secured business credit card:
Is there an annual fee? We’re not against fees — they can potentially be deducted as business expenses, after all. But the benefits of a card should far outweigh that cost. We don’t think that paying a fee only to establish business credit is worthwhile enough, especially when there are free ways to do so (getting a DUNS number, for instance).
How much is the deposit? Secured cards are tied to a refundable deposit you provide. That makes these cards less risky for issuers; they can simply seize the deposit in instances of non-payment. Minimum deposits should be low enough to make a product accessible and not hamstring liquidity.
What else does the card offer? The best secured options do more than report your payment history to a commercial credit bureau. They also reward your spending and make it easy to upgrade to a traditional small-business credit card.
What’s the best secured business credit card?
The Bank of America® Business Advantage Unlimited Cash Rewards Mastercard® Secured credit card is our top pick for secured business credit cards. Bank of America is the only major credit card issuer with a secured option for business owners, but the card still stands out on its own merit.
The big pluses? There’s no annual fee and 1.5% cash back on all purchases, with no cap or expiration date on the rewards you earn. Bank of America also periodically reviews your secured card and may upgrade you to an unsecured business card if and when you qualify. If you want a secured card to grow your business credit, Bank of America also offers its business banking customers free access to their Dun & Bradstreet credit reports — a nice perk.
We generally rate Bank of America business credit cards lower than other options. However, that calculus changes if you qualify for the bank’s Preferred Rewards for Business program, which is possible with an average balance with the bank of $20,000 or more. Doing so can earn you up to 2.62% unlimited, flat-rate cash back on certain cards, as well as perks like higher interest rates on business savings accounts.
That program is one reason NerdWallet considers Bank of America one of the best banks for small business. If your company is just starting out and doesn’t have a relationship with a business bank, getting a secured card from Bank of America is a simple way into its ecosystem.
The Bank of America® Business Advantage Unlimited Cash Rewards Mastercard® Secured credit card does have its drawbacks. The card is subject to credit approval, and you can’t prequalify to check your eligibility. It also has a minimum security deposit of $1,000. While that isn’t the highest barrier to entry we’ve seen, it’s also not the lowest.
Other secured business credit cards we considered
The Valley Bank Visa® Secured Business Credit Card has no annual fee and offers 1% cash back. It also has a 0% intro APR period on purchases for your first six months (the ongoing APR thereafter is 16.20% to 27.75%). A business card’s intro APR period is essentially an interest-free loan, so this is usually a notable perk. But it’s not quite so valuable for secured cards since that “loan” is essentially offset by money you deposited. Valley Bank makes you put down 110% of your desired credit limit as well, tying up even more of your cash.
The Charity Charge Nonprofit Secured Business Card has no annual fee, cash-back rebates at participating vendors and group purchasing discounts. It’s a nonprofit business credit card, which makes this option less accessible by default. Its massive minimum security deposit of $5,000 might shrink the pool of eligible applicants even further.
The Hello Alice Small Business Secured Mastercard® issued by the First National Bank of Omaha (FNBO) has a lot going for it: a $500 minimum deposit, no annual fee, an intro APR offer and even a bonus. New cardholders can earn a $50 statement credit by spending $1,000 in their first three billing cycles. Ongoing rewards come as “Hello Alice Points” that you can put toward event access, coaching and other things (including gift cards and cash). Points vary by purchase type. We generally prefer the flexibility of flat-rate cash back..
FNBO has its own secured business card as well: the First National Bank Business Edition® Secured Mastercard® Credit Card. That card requires a bigger minimum security deposit — at least $2,000 — and charges a $39 annual fee. You’ll earn interest on that deposit, but with no other rewards, the value isn’t there unless banking with FNBO is atop your list of priorities. That's also important because you need to live in FNBO's service area to qualify (even though you can apply online).
If you are prioritizing a banking partner, it’s worth checking to see if any community bank or credit union in your area offers secured business credit cards. Just make sure to weigh the card’s fees and features against the potential value of a relationship with your local financial institution. For instance, Metro Credit Union (headquartered in Chelsea, Mass.) has the Metro Business Builder Visa Credit Card — but it comes with a $69 annual fee and no rewards.
Are there alternatives to secured business credit cards?
Many business credit cards require excellent personal credit. But entrepreneurs with credit scores between 630 (typically considered bad credit) and 690 may have better options than a secured business credit card.
Can you use a personal secured credit card for business?
You don’t necessarily need a business credit card for business finances. If you’re a sole proprietor, you could get a separate personal secured credit card or opt for a personal card for fair or average credit (there are more of these for individuals than businesses).
These types of cards may help your personal credit — a must for future financing — but they’ll lack features like employee cards and often come with lower limits than business credit cards. Just be sure to keep your business and personal spending separate.
Among personal secured cards, the Capital One Quicksilver Secured Cash Rewards Credit Card is a solid choice. It offers an impressive combination of features for those with poor credit. A deposit is required, but in exchange you get a $0-annual-fee card that reports to all three credit bureaus; an automatic credit limit review after six months; and a possible upgrade path to an unsecured Capital One card. There’s 5% cash back on hotels and rental cars booked through Capital One Travel, plus 1.5% cash back on all other purchases, which equals what you'd find on many unsecured cards (see rates and fees ).
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The Discover it® Secured Credit Card is another option with a generous cash-back program. Discover says responsible habits will automatically trigger an evaluation for an upgrade after seven months of holding the card. Note that your security deposit must be paid through a bank account.
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Frequently asked questions: Secured business credit cards
What is a secured business credit card?
A secured business credit card is a line of credit for entrepreneurs that requires a cash deposit. That deposit typically functions as your credit limit, and the card issuer can take it in instances of non-payment.
Secured business credit cards can make sense if your personal FICO score is below 690. That's the score you often need to qualify for most unsecured business credit cards. Secured cards are also a solid option — no matter your personal credit — for those lacking a business credit score, as they can let your business demonstrate responsible debt repayment.
Which banks offer secured business credit cards?
Among major credit card issuers, Bank of America is the sole provider with a secured business credit card. Chase, Citi, Discover, U.S. Bank, American Express and others don't offer these cards. Wells Fargo previously did, but its secured business card is no longer available to new applicants.
These niche products are more common among regional financial institutions. For instance, the First National Bank of Omaha, Valley Bank and Metro Credit Union (headquartered in Chelsea, Mass.) all offer secured business cards.
How to use a secured business credit card effectively
Here are a few ways to make the most of a secured business credit card:
Use the card consistently, making one or two small purchases every month. Smaller purchases will leave you with more available credit, which is good for your business’s credit score.
Pay your balance in full every month before the due date. That way, you won't be charged interest. If your secured card has an intro APR period, be sure to at least make your minimum payment.
Watch your business credit score. You aren't entitled to view your full business credit reports for free, but there are ways to keep an eye on your scores for signs of improvement.
Keep in mind that business credit cards typically don't impact personal credit — except in instances of non-payment. That means using a secured business credit card won't necessarily qualify you for additional unsecured small-business credit cards unless an issuer upgrades you if you become eligible. Otherwise, you'll likely need to improve your personal credit or consider business cards that don't require a credit check, like corporate cards.
* Information for the Capital One® Spark® Classic for Business was collected independently and not reviewed by or provided by Capital One.
Business credit cards methodology
NerdWallet's Credit Cards team selects the best credit cards for small business based on overall consumer value, as evidenced by star ratings, as well as their suitability for specific kinds of small-business operators. Factors in our evaluation include annual and other fees, rewards rates, the earning structure (for example, flat-rate rewards versus bonus categories), redemption options, bonus offers for new cardholders, introductory and ongoing APRs, and other noteworthy features such as special financing arrangements, free cards for employees or tools for managing business expenses. Learn more about how we rate business credit cards.
Secured business cards can be an easy way to establish credit in your company's name, as most report your payment history to commercial credit bureaus.
You can establish credit by using many business credit cards responsibly, but most require a personal FICO score of at least 690 to qualify.
A secured personal card may be the quickest path to building or rebuilding your personal credit if your FICO score falls below that threshold.
