A business credit card gives you the convenience of a credit card for business expenses so you can keep your business transactions separate from personal spending.
If you’ve been denied for other business credit cards, but want a credit card for your business, a secured business card might be another option.
Ibis Consultants’s Top Secured Business Credit Card Picks
|Card Name||Annual Fee|
|Wells Fargo Business Secured Credit Card||$25|
|BBVA Compass Business Secured Visa Credit Card||$40 (waived first year)|
|Business Edition Secured Visa Card||$39|
Is a Secured Business Credit Card Right for You?
You may have already discovered that most business credit cards require a personal guarantee or personal credit check, even if you use your company’s EIN on the application instead of your social security number. This is because your business has to build credit separately from your personal credit to be able to get a credit card on its own.
If you have fair or bad personal credit and your business hasn’t established credit history, you may not be able to get approved for an unsecured business credit card, and a secured business credit card might be a good fit for you. If you have good credit, you can likely get an unsecured business credit card instead.
Secured business credit cards are designed to provide you with a line of credit for your small to mid-sized business, even if you don’t have good personal credit. The difference is a secured card requires a security deposit when you’re approved. Usually, the credit limit of the card is based on a percentage of the deposit. This deposit reduces a credit card company’s risk for applicants who pose a higher risk based on their personal credit histories.
Secured cards don’t usually come with the best rates and rewards, but provide a starting point for getting an unsecured credit card. As long as you use the card responsibly you should be able to qualify for unsecured business cards with better rewards and benefits in the future. Some secured cards can be converted to unsecured cards after you’ve demonstrated you can use one responsibly. Depending on whether you’ve built credit for your business, you may even be able to get a card without a personal guarantee.
Confused about how business or secured cards work? Take a few minutes to learn more:
Do Secured Business Cards Build Business Credit?
The way business credit cards report to credit bureaus can be tricky, and varies depending on the issuer and how the account is set up.
Personal credit bureaus are separate from business credit bureaus. Not all business credit cards, whether secured or unsecured, report to business credit bureaus. To find out if a secured business card (or any business credit card) reports to business credit bureaus, ask the issuer before you apply.
When backed by a personal guarantee, many business credit cards only report negative items on your personal credit reports. This means the account will likely not show up on your personal credit reports, so it will not help you build personal credit. However, if you you miss a payment on your business credit card, for example, that negative item will likely show up on your personal credit reports.
Get a Secured Business Credit Card
Currently, there aren’t many major issuers that offer secured business cards. We put together a list of all the cards we could find so you can decide if any of these cards are the right option for you:
For People with
- Annual Fee: $25 per card
- Interest Rate: 18.99% (Variable)
Quick Card Facts
- 10 Cards For You & Employees
- Wells Fargo Business Card Rewards®: Earn rewards if you want by paying $50 per year to participate, expect the first year which is $0.
- $10 Cash Rewards Bonus: Every time you spend $1,000.
- 10% Points Bonus: When you redeem online.
- More Bonus Points: When you shop online or in person at the Earn More Mall.
- Card Design Studio®: Design your own card.
Get an Unsecured Business Credit Card
Browse business credit cards on our partner’s site below.
Business Credit Cards
- Bring your Business finances to the next level with a Business rewards card.
- Bonus offer – new card holders may be eligible for welcome bonuses of up to 100,000 points.
- Earn rewards points on your everyday business expenses.
- Rewards can be redeemed for business expenses like airfare, gas, or hotel rooms.
- Credit cards and charge cards are available.
- Terms vary by partner offer. Please see each bank’s application for terms and conditions.
- Clicking Apply Now will take you to CreditCards.com to compare Business cards from participating partners.