Wells Fargo Business Secured Card Review: Business Credit Card Option for Owners With Limited Credit
Review
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Information about the Wells Fargo Business Secured Credit Card was collected independently by Motley Fool Money and offer details may be out of date.
A big part of getting a small business credit card is the credit check -- the personal credit check. If your personal credit isn't good, you may have a hard time getting credit cards for your business. The Wells Fargo Business Secured Credit Card is one of the few card options for business owners with poor or limited credit. Its security deposit requirement allows for flexible credit qualifications. It also comes with purchase rewards and no annual fee. Read our full Wells Fargo Business Secured Credit Card review for all the details.
New/Rebuilding Under(579)
Intro APR
Purchases: N/A
Balance Transfers: N/A
Regular APR
15.15%, Variable
Rewards Earn 1.5% cash back on qualifying purchases or earn 1 point on every $1 spent and receive 1,000 bonus points every billing cycle when you spend at least $1,000 on qualifying purchases.
1.5% cash back or 1 point per dollar spent
Annual Fee
None
Welcome Offer
N/A
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| Ink Business Preferred® Credit Card | Capital One Spark 1% Classic Card | The Blue Business® Plus Credit Card from American Express |
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Rating image, 4.50 out of 5 stars.
4.50/5
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2 stars equals Fair.
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Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Rating image, 3.50 out of 5 stars.
3.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor
Rating image, 3.50 out of 5 stars.
3.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
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Apply Now for The Blue Business® Plus Credit Card from American Express
On American Express's Secure Website. |
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Credit Rating Requirement:
Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.
Recommended Credit Score required for this offer is: Good/Excellent (670-850)
Good/Excellent (670-850) |
Credit Rating Requirement:
Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.
Recommended Credit Score required for this offer is: Fair/New to Credit Under(669)
Fair/New to Credit Under(669) |
Credit Rating Requirement:
Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.
Recommended Credit Score required for this offer is: Good/Excellent (670-850)
Good/Excellent (670-850) |
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Welcome Offer: Earn 90,000 bonus points after you spend $8,000 on purchases in the first 3 months from account opening. Earn 90,000 bonus points |
Welcome Offer: N/A |
Welcome Offer: Earn 15,000 Membership Rewards® points after you spend $3,000 in eligible purchases on the Card within your first 3 months of Card Membership. 15,000 Membership Rewards® points |
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Rewards Program: Earn 3 points per $1 on the first $150,000 spent in combined purchases on travel, shipping purchases, Internet, cable and phone services, advertising purchases made with social media sites and search engines each account anniversary year. Earn 1 point per $1 on all other purchases-with no limit to the amount you can earn. Earn 3 points per $1 in select business categories |
Rewards Program: 1% cash back |
Rewards Program: 2X points on the first $50,000 spent in purchases each year, 1X points on purchases thereafter 1x - 2x points |
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Intro APR: N/A Purchases: N/A Balance Transfers: N/A |
Intro APR: Purchases: N/A Balance Transfers: N/A |
Intro APR: Purchases: 0% on purchases, 12 months from date of account opening Balance Transfers: N/A |
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Regular APR: 20.24% - 26.24% Variable |
Regular APR: 29.99%, variable |
Regular APR: 17.49% - 27.49% Variable |
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Annual Fee: N/A $95 |
Annual Fee: $0 |
Annual Fee: No annual fee |
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Highlights:
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Apply Now for The Blue Business® Plus Credit Card from American Express
On American Express's Secure Website. |
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The Capital One Spark 1% Classic Card is unavailable on Motley Fool Money. All information was collected independently and not reviewed for accuracy or provided by the credit card issuer. Some items may be out of date. Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. - Please visit americanexpress.com/benefitsguide for more details. - Extended warranty, purchase protection, and car rental loss & damage underwritten by AMEX Assurance Company. - Card Members are responsible for the costs charged by third-party service providers.
This credit card is a good fit for: Business owners with limited credit history who want to build credit and earn rewards.
This card offers a lot of perks for a secured card.
Often, cardholders with limited credit have to choose between building credit and earning rewards. The Wells Fargo Business Secured Credit Card lets you do both. Moreover, you can choose how you earn rewards.
You can earn cash back or rewards points (cash back is generally simpler to redeem, while points offer more flexibility). If you choose cash back, you earn 1.5% cash back on unlimited purchases. Your cash back is automatically redeemed each quarter. Options include a statement credit, as well as a deposit to your associated Wells Fargo checking or savings account.
If you choose rewards points, you earn one point per dollar on unlimited purchases. Plus, you receive a bonus of 1,000 points for every billing period in which you spend $1,000 or more on your card. Rewards points can be redeemed for gift cards, merchandise, travel, and more. Cardholders also receive a 10% points credit when redeeming online.
Learn more: Best Cash Back Credit Cards
The Wells Fargo Business Secured Credit Card has no annual card fee. Since you already have to fork over a deposit, this is a valuable perk that can help you save a little each year. It's also nice that the $0 annual fee extends to employee cards. You can get up to 10 employee cards for free, with no card fees. You get access to spending reports to keep an eye on team expenses.
One of the more surprising perks of the Wells Fargo Business Secured Credit Card is that it doesn't charge foreign transaction fees. This is most commonly a perk of travel rewards credit cards, so it's a nice bonus for a secured card.
Foreign transaction fees are typically charged on any transaction in a foreign currency (anything other than U.S. dollars). They can also be charged for purchases that route through foreign banks, such as when you buy from an overseas supplier. These fees can add up quickly for businesses that operate internationally, so it's nice to find a credit card with no foreign transaction fees.
Arguably the most important perk of the Wells Fargo Business Secured Credit Card is that you don't need to have good credit to get approved. Most business credit cards require good to excellent personal credit. Others require established business credit. The Wells Fargo Business Secured Credit Card requires neither. This card is open to businesses -- and their owners -- with limited credit, as well as those who may have had credit challenges in the past.
Although it can be a challenge to put down a deposit to open and maintain a Wells Fargo Business Secured Credit Card, that challenge can pay off. Wells Fargo periodically evaluates your card account and credit history to check on your progress. You could eventually become eligible for an automatic upgrade to an unsecured business credit card account. If Wells Fargo upgrades your account, you receive a full refund of your deposit.
It's worth noting that there's no set timeline for an upgrade, nor is there a guarantee that you'll become eligible.
If you're ready for an unsecured card, take a look at our picks for the best credit cards to see what's out there.
The drawbacks for this card should be carefully considered before applying.
Pretty much all credit cards require you to have a checking account to open a card. Most of the time, that account doesn't have to be with the credit card issuer. Not in this case. The Wells Fargo Business Secured Credit Card specifically requires that applicants have an eligible Wells Fargo business checking or savings account. The funds for the deposit to open your Wells Fargo Business Secured Credit Card must come from this account.
Eligible bank accounts include:
As a secured credit card, the Wells Fargo Business Secured Credit Card requires a security deposit to open and maintain your account. If you can't afford the deposit -- and do without that money while your account is open -- don't open a Wells Fargo Business Secured Credit Card account.
Your credit limit is equal to the size of your deposit. The minimum deposit is $500, and the maximum is $25,000.
The deposit is fully refundable if you:
OR
In either case, your entire deposit is refunded. If you default on your card, you forfeit that deposit. The card company closes your account and uses the deposit to cover any outstanding balance and associated fees.
As a secured credit card, the Wells Fargo Business Secured Credit Card doesn't have minimum credit score requirements. It is specifically designed for businesses that have limited credit history or past credit challenges.
Essentially, the security deposit gives Wells Fargo assurance that it won't lose money if you default on your card, so the bank can be more lenient about who gets a Wells Fargo Business Secured Credit Card.
See more: Best Business Credit Cards
The Wells Fargo Business Secured Credit Card is a solid pick if you want to build credit for your business and can put down a deposit. It offers a high deposit limit (which can mean a high spending limit), as well as purchase rewards and no annual fee. The potential to graduate to an unsecured card is also a nice perk. However, if you can't manage the deposit, you may need to check out other options. Our list of credit card reviews is a good place to explore other cards.
Learn more: Best Wells Fargo Credit Cards
At Motley Fool Money, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.
We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how Motley Fool Money rates credit cards.
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