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The information for the following product(s) has been collected independently by Business Insider: Bank of America Business Advantage Unlimited Cash Rewards Secured Business Credit Card, Capital One Spark 1% Classic†, Valley Visa® Secured Business Credit Card, FNBO Business Edition® Secured Mastercard® Credit Card. The details for these products have not been reviewed or provided by the issuer.
Small business owners understand that credit is the lifeblood of their business. However, getting approved for a small business credit card can be challenging for those who have a poor credit score. Secured business credit cards can give you access to credit while rebuilding your credit score.
Best Secured Business Credit Cards
Here are Business Insider's picks for the best secured business credit cards available right now:
- Best for everyday rewards: Bank of America Business Advantage Unlimited Cash Rewards Secured Business Credit Card
- Best for travel: Capital One Spark 1% Classic†
- Best for no personal guarantee: Ramp Visa Corporate Card
- Best for 0% intro APR: Valley Visa® Secured Business Credit Card
- Best for flexible credit limit: FNBO Business Edition® Secured Mastercard® Credit Card
- Best for high credit limit with no fees: Brex Card
Secured Business Credit Card Reviews
Bank of America Business Advantage Unlimited Cash Rewards Secured Business Credit Card: Best for Everyday Rewards
Our choice for the best secured business credit card for everyday rewards is the Bank of America Business Advantage Unlimited Cash Rewards Secured Business Credit Card.
This card earns an unlimited 1.5% cash back on every purchase without remembering bonus categories or activating special offers. You can open an account for as little as $1,000, plus there is no annual fee.
The card also includes free access to your Dun & Bradstreet business credit score through the bank's online dashboard. As your credit score improves, you may qualify to transition to an unsecured card and get your security deposit back.
Capital One Spark 1% Classic†: Best for Travel
For business owners who travel regularly, the Capital One Spark 1% Classic† is the best card for your travel purchases.
You'll earn unlimited 1% cash back on all purchases, plus it offers 5% cash back when booking hotels and rental cars through Capital One Travel. There are no annual fees, and you can add employee cards with individual spending limits and reporting at no extra charge. Plus, there are no foreign transaction fees when making purchases outside of the U.S. You'll even receive an extended warranty on eligible purchases, which can save money on expensive add-on warranties.
Read more in our review of the Capital One Spark Classic for Business.
Ramp Visa Corporate Card: Best for No Personal Guarantee
The Ramp Visa Corporate Card is the best secured business credit card that doesn't require a personal guarantee.
There are no annual fees or late payment fees, and Ramp's underwriting unlocks higher limits up to 20x higher credit limits. Business owners can issue unlimited virtual and physical cards at no additional cost. The card also earns up to 1.5% cash back on purchases, including all spending on employee cards.
Ramp's software enables business owners to restrict any type of spending, track purchases, and lock cards at any time.
Read more in our review of the Ramp Card.
Valley Visa® Secured Business Credit Card: Best for 0% Intro APR
Most secured business credit cards do not include a 0% intro offer because the primary goal is building credit. However, the Valley Visa® Secured Business Credit Card includes a 0% intro APR on purchases for first six months, then 16.20% to 27.75% variable APR. This feature can be very beneficial to business owners who need extra time to pay off their balances without interest charges.
In addition to the 0% introductory APR, cardholders earn an unlimited 1% cash back on eligible purchases. There are no annual fees, and you can add up to 25 cards without any additional cost. Valley National Bank offers credit limits up to $25,000, but it requires a security deposit of 110% of your limit.
FNBO Business Edition® Secured Mastercard® Credit Card: Best for Flexible Credit Limit
Business owners who need a lot of credit on a secured business credit card should consider the FNBO Business Edition® Secured Mastercard® Credit Card. This card offers credit limits ranging from $2,000 to $100,000 (in multiples of $50), as long as you put down a cash security deposit of 110% of your limit.
While this card doesn't earn rewards on purchases, cardholders do earn interest on their security deposit. Benefits include rental car protection, mobile receipt management and Mastercard Easy Savings. The card charges an annual fee of $39, and there is a foreign transaction fee for purchases outside the U.S.
Brex Card: Best for High Credit Limit with No Fees
This niche card is designed for startups backed by accelerators, angel investors, or venture capital. The Brex Card also targets companies with $400,000 or more in monthly revenue, or just under $5 million each year.
If your business qualifies for the Brex Card, this no-annual-fee secured card could be a good fit for your financial needs. Cardholders who put all of their spend on this card can earn up to 7 points per dollar on certain categories of spend — and businesses in tech or life sciences, or which also have a Brex Cash account can earn up to 8 points per dollar on top expense categories.
The Brex card shines regarding fees — or the lack thereof. You won't pay an annual fee for this card, nor will you incur interest. Instead, Brex makes its money from the merchants it partners with, so it's a good choice for entrepreneurs willing to go all-in on a single business card.
Read more in our Brex credit card review.
Compare the Top Secured Business Credit Cards
$0
N/A
28.49% variable
N/A
Poor
- Flat-rate 1.5% cash back is generous for a secured card
- No annual fee
- Potential upgrade to a unsecured version
- $1,000 minimum security deposit
- 4% balance transfer fee
- 3% foreign transaction fees
$0
N/A
30.49% Variable
N/A
Fair
- No annual fee
- Travel and purchase protection
- Some other business cards offer better rewards
- No welcome bonus
Whether you have a new business or just don't have a ton of credit history, the Capital One Spark 1% Classic could be a good stepping stone. It's possible to get approved for the card with just fair credit, whereas most other business cards that earn rewards require a good or even excellent credit score.
Capital One Spark 1% Classic†
$0
N/A
N/A
None
No Credit History
- Up to 1.5% cashback on purchases
- Very high credit limit available
- No annual fees, late fees, or foreign transaction fees
- Can't carry a balance since this is a charge card
- Must link a business bank account with at least $25,000
- No welcome bonus
- No annual fee.
- Earn up to 1.5% cashback.
- Automated expense management software built into your corporate card, reimbursements, and more.
- Access to discounts and rewards with partner vendors.
- No interest charged because ramp is a corporate charge card. Unlike regular credit cards, charge cards require you pay your balance in full by each statement period and not carry over balances.
$0
0% intro APR on purchases for first six months
16.20% to 27.75% variable
None
Poor
- 0% APR available for new purchases and balance transfers
- 1% cash back on all purchases
- No annual fee
- Requires a security deposit of 110% the requested credit limit
- Lower credit limit compared to competitors
- No welcome bonus
$39
N/A
25.99% variable
None
Poor
- High credit limit available
- Earn interest on your security deposit
- Available for applicants with very low credit scores
- $39 annual fee
- Requires a security deposit of 110% the requested credit limit
- No rewards
$0
N/A
N/A
Earn 10,000 points
Poor to Excellent
- No personal guarantee
- Several bonus categories
- Discounts with Slack, Zoom, AWS and more
- No annual fee
- You can only earn bonus rewards if Brex is your only corporate card, so it doesn't pair well with other business rewards credit cards
- Fewer options for redeeming rewards compared to some business credit cards from Amex and Chase
The no-annual-fee Brex Card is lauded as an extremely user-friendly bank for startup companies. The definition of "startup," however, isn't nearly as lenient as you'll find with other banks, such as Chase and American Express. Sole proprietors aren't eligible for the card — nor are small and medium businesses, for that matter. If you do qualify, Brex offers generous rewards and valuable airline transfer partners such as Avianca, Singapore Airlines, Emirates, and more.
Brex CardSecured Business Credit Cards Overview
What is a Secured Business Credit Card?
Secured business credit cards offer access to credit when your business credit scores are too low to be approved for traditional credit.
A secured business credit card operates just like a business credit card, allowing business owners to pay for company-related supplies, materials, utilities, and other operating expenses, and then repay them over time. But unlike most credit cards, secured credit cards typically require a cash security deposit to cover any potential charges in case the cardholder stops making payments.
Getting a secured business credit card provides access to credit for your small business. These cards enable you to make purchases and pay off the charges over time while building credit. Typically, your credit limit will depend on the amount of cash you put down as a security deposit, up to a maximum limit. Some cards offer additional value for your business, such as cash back rewards, intro APR offers, and free employee cards.
Use your cards wisely and take steps to boost your credit score so you can qualify for cards that don't require a security deposit. If you're not ready for a secured business card, there are alternative financial tools to pay bills or borrow money.
How to Choose the Best Secured Business Credit Card for You
Compare Rewards, Annual Fees, and Security Deposit Requirements
Certain secured business credit cards offer cardholders the opportunity to earn rewards on company purchases, while others offer a 0% intro APR period to avoid interest while paying off balances over time.
Using the card responsibly also builds a positive credit history for your personal and business credit reports. Some banks allow responsible secured credit cardholders to "graduate" to unsecured business credit cards with time and consistent payment history, which frees up the funds held for security and opens up the possibility of qualifying for additional business credit.
Choosing the best secured credit card for your business depends on your goals, where you spend the most, and which features are most important to you. There are many secured cards to choose from, so we've chosen the best cards for different types of small business owners.
Secured Business Cardholder Insights
We reviewed customer feedback across public forums such as Reddit and FlyerTalk to see what other small business owners have to say about secured business credit cards.
No Annual Fees and Cardholder-Friendly Benefits
One business owner recommended both the Bank of America Business Advantage Unlimited Cash Rewards Secured Business Credit Card and the Valley Visa® Secured Business Credit Card, highlighting their lack of annual fees and individual benefits as a selling point for new entrepreneurs.
This cardholder particularly appreciated the Bank of America card's flat rate of 1.5% cash back on all purchases as well as the ability to automatically upgrade to an unsecured card with responsible usage. Meanwhile, the Valley Visa's 0% intro APR period can come in handy for business owners with big purchases coming up.
Local Financing Options
Many small business owners stated that they received better customer service and more personalized financing options when they reached out to a local bank or credit union for business credit compared to applying through a large national corporation.
Alternatives to Secured Business Credit Cards
If you aren't ready to apply for a secured business credit card, there are alternative ways to pay bills and get money for your business.
Local Banks and Credit Unions
As mentioned above, many small business owners found that local financiers were more willing to work with new or no credit compared to major corporations such as Chase. You may be able to finance a line of credit at a lower rate through your local institution, or apply for a small business loan outright with lower interest rates than those found on most secured credit cards.
Business Debit Cards
Most banks offer free debit cards when you open a business checking account. Debit cards with a Visa or Mastercard logo make purchases like a credit card, but they use the money in your bank account. While you are limited to spending only what's available in your account, these purchases won't cause any additional debt.
Personal Credit Cards
Small business owners often use new or existing personal credit cards to fund their businesses. The best credit cards offer benefits such as purchase protection, 0% intro APR periods, and generous welcome bonuses, and can serve as an excellent financial solution until your business qualifies for its own credit cards.
Repayment Terms From Your Auppliers
Many vendors offer repayment terms of 30 to 90 days or more without charging interest. This encourages customers to buy products for resale to generate revenues that repay suppliers. Talk to your suppliers to determine what terms you qualify for based on your order and payment history with them.
SBA Loans
You may be able to get a business loan through the Small Business Administration (SBA), which guarantees loans at competitive interest rates to small businesses through participating banks. SBA 7(a) Express loans up to $50,000 do not require any collateral.
Best Secured Business Credit Card Frequently Asked Questions
Yes, secured cards are designed for business owners with limited or poor credit history.
Yes, cardholders can get their security deposits back when they close the account, or if they can upgrade to an unsecured credit card after a period of responsible use and good payment history.
Secured cards require a deposit to guarantee your debt repayment. Unsecured cards do not require deposits, but often come with stricter credit requirements for approval.
A secured business credit card is a tool designed for businesses that have low or minimal business credit history and credit score. A secured business credit card can be used just like a traditional credit card, although you'll need to put down a security deposit to cover outstanding charges if you stop paying off what you owe.
All of the secured business credit cards in this guide are designed for business owners with poor or no credit. A secured business credit card can help you build business credit, potentially allowing you to qualify for additional lines of credit in the future.
Your credit limit on a secured business credit card typically depends on the amount you put down as your security deposit. Many issuers require a deposit that's 110% of the credit limit you want — so if you want a $10,000 credit limit on your secured business credit card, you'll need to put down $11,000.
It may take anywhere from six to 24 months to boost your business credit score with a secured credit card. Some issuers allow secured cardholders to "graduate" to unsecured cards based on responsible credit use, often after one to two years of responsible card usage.
Why You Should Trust Us: How We Chose the Best Small Business Secured Credit Cards
Personal Finance Insider's team of experts determine the best small business credit cards by comparing them to other products on the market. Some criteria we considered when evaluating secured business credit cards include:
Accessibility — Is it easy for the average small business owner to get this secured business credit card? Does the issuer require a certain amount of money for a security deposit, or only approve businesses with a specific threshold of cash in the bank?
Benefits and Rewards — It's rare for secured credit cards to offer benefits and rewards in general, since their primary purpose is to help the cardholder(s) build credit. But some cards do, and our experts factored these benefits into our evaluations.
Ability to "Graduate" to Unsecured Credit Cards — The best secured business credit cards help you build business credit so you can apply for other lines of credit. Some of the cards reviewed in this guide allow you to automatically upgrade to the unsecured version of the business credit card with consistent and timely repayments.
