LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
LendingTree is an advertising-supported comparison service. The site features products from our partners as well as institutions which are not advertising partners. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products. We are compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order).
Terms apply to American Express benefits and offers. Visit americanexpress.com to learn more.
October 25, 2022
*Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.
This article was last updated October 25, 2022 . Terms and conditions may have changed. For the most accurate information, please consult the issuer website.
The Business Advantage Unlimited Cash Rewards Mastercard® Secured credit card credit card is our pick for overall best secured business credit card. With a $0 annual fee and unlimited 1.5% cash back on all purchases, this card offers significant value for the small business owner looking to build credit.
Most small business credit cards require good to excellent credit to qualify. But what if you own a business, need a credit card to manage cash flow and are recovering from some financial missteps? A secured business credit card might be just what you need.
With a secured card, you’ll submit a security deposit — typically in the amount of your desired credit limit — which protects the issuer if you don’t pay off what you charge to the card.
While secured credit cards are more common in the consumer credit card world, there are some secured small business credit cards available if you know where to look. We’ve rounded up three such cards worth considering, as well as one unsecured business credit card available to business owners with fair credit.
The Business Advantage Unlimited Cash Rewards Mastercard® Secured credit card provides the opportunity to build your business credit and earn rewards at the same time, all for a $0 annual fee. You can open an account with a $1,000 minimum deposit. From there, you’ll earn unlimited 1.5% cash back on all purchases — an exceptional rate for a secured credit card. It also offers handy cash flow management tools for small business owners, including automatic payments, transfers and integration with QuickBooks.
On the downside, the APR is on the high side at 25.24% , so you’ll need to make sure to pay your bill in full every month.
If you’re a small business owner with a lower credit score, the Business Advantage Unlimited Cash Rewards Mastercard® Secured credit card could work for you. It has a $0 annual fee, a great rewards program and useful tools for small businesses.
The Business Advantage Unlimited Cash Rewards Mastercard® Secured credit card provides the opportunity to build your business credit and earn rewards at the same time, all for a $0 annual fee. You can open an account with a $1,000 minimum deposit. From there, you’ll earn unlimited 1.5% cash back on all purchases — an exceptional rate for a secured credit card. It also offers handy cash flow management tools for small business owners, including automatic payments, transfers and integration with QuickBooks.
On the downside, the APR is on the high side at 25.24% , so you’ll need to make sure to pay your bill in full every month.
If you’re a small business owner with a lower credit score, the Business Advantage Unlimited Cash Rewards Mastercard® Secured credit card could work for you. It has a $0 annual fee, a great rewards program and useful tools for small businesses.
With the FNBO Business Edition® Secured Mastercard® Credit Card, you can request a credit limit ranging from $2,000 to $100,000 (in multiples of $50). Assuming you have the cash available for a big security deposit, you could potentially get a very high credit limit with this card compared to others on the list.
Be aware that your security deposit amount must be 110% of your credit limit, which is unusual. The typical practice is for your deposit amount to match your credit limit — however, with the FNBO Business Edition® Secured Mastercard® Credit Card, a $2,000 credit limit would require a $2,200 deposit, for example.
The card’s annual fee is $39 and the foreign transaction fee is 3% of each transaction in U.S. dollars.
The regular APR is 23.24% variable — it’s a bit on the high side, so you should pay off your card in full every billing cycle to avoid interest charges.
If you need a high credit limit and have the money for a big security deposit, the FNBO Business Edition® Secured Mastercard® Credit Card offers a higher maximum credit limit than the other secured cards on this list. Be aware, however, that your deposit must be 110% of your desired credit limit. So, for example, a $110,000 deposit would be required to secured a $100,000 credit limit.
With the FNBO Business Edition® Secured Mastercard® Credit Card, you can request a credit limit ranging from $2,000 to $100,000 (in multiples of $50). Assuming you have the cash available for a big security deposit, you could potentially get a very high credit limit with this card compared to others on the list.
Be aware that your security deposit amount must be 110% of your credit limit, which is unusual. The typical practice is for your deposit amount to match your credit limit — however, with the FNBO Business Edition® Secured Mastercard® Credit Card, a $2,000 credit limit would require a $2,200 deposit, for example.
The card’s annual fee is $39 and the foreign transaction fee is 3% of each transaction in U.S. dollars.
The regular APR is 23.24% variable — it’s a bit on the high side, so you should pay off your card in full every billing cycle to avoid interest charges.
If you need a high credit limit and have the money for a big security deposit, the FNBO Business Edition® Secured Mastercard® Credit Card offers a higher maximum credit limit than the other secured cards on this list. Be aware, however, that your deposit must be 110% of your desired credit limit. So, for example, a $110,000 deposit would be required to secured a $100,000 credit limit.
The Union Bank® Business Secured Visa® Credit Card allows for a credit limit ranging from $500 to $25,000, based on how much you deposit. There’s a $30 annual fee.
Where this card stands out is its low interest rate. Many cards aimed at people with less-than-stellar credit have interest rates upwards of 20% — the Union Bank® Business Secured Visa® Credit Card, however, has a 21.99% Variable APR. That said, it’s still best practice to pay your card off in full every billing cycle.
The foreign transaction fee is 3% of each transaction in U.S. dollars.
Sometimes carrying a balance is unavoidable — so when you need to roll over a balance month to month, a credit card with a low interest rate can be a little less painful. The Union Bank® Business Secured Visa® Credit Card stands out from the crowd with a low 21.99% Variable APR, as some competing cards have APRs above 20%.
The Union Bank® Business Secured Visa® Credit Card allows for a credit limit ranging from $500 to $25,000, based on how much you deposit. There’s a $30 annual fee.
Where this card stands out is its low interest rate. Many cards aimed at people with less-than-stellar credit have interest rates upwards of 20% — the Union Bank® Business Secured Visa® Credit Card, however, has a 21.99% Variable APR. That said, it’s still best practice to pay your card off in full every billing cycle.
The foreign transaction fee is 3% of each transaction in U.S. dollars.
Sometimes carrying a balance is unavoidable — so when you need to roll over a balance month to month, a credit card with a low interest rate can be a little less painful. The Union Bank® Business Secured Visa® Credit Card stands out from the crowd with a low 21.99% Variable APR, as some competing cards have APRs above 20%.
Maybe your credit isn’t pristine — but what if you don’t want to tie up $500 or more in a deposit for a secured credit card? Luckily, the Capital One Spark Classic for Business is an unsecured card available to small business owners with fair credit. It charges a $0 annual fee and you’ll earn unlimited 5% cash back on hotels and rental cars booked through capital one travel.
Plus, you can take this card abroad without worrying about a foreign transaction fee — there is none.
Note that the APR is very high at 28.49% (variable), so you’ll want to avoid carrying a balance on this card.
If you want to earn flat-rate cash back on every purchase and avoid a security deposit and annual fee, the Capital One Spark Classic for Business fits the bill.
Note that this card is aimed at applicants with fair credit, however, so you might have a better chance at getting a secured card if your credit has been severely damaged by past missteps.
Maybe your credit isn’t pristine — but what if you don’t want to tie up $500 or more in a deposit for a secured credit card? Luckily, the Capital One Spark Classic for Business is an unsecured card available to small business owners with fair credit. It charges a $0 annual fee and you’ll earn unlimited 5% cash back on hotels and rental cars booked through capital one travel.
Plus, you can take this card abroad without worrying about a foreign transaction fee — there is none.
Note that the APR is very high at 28.49% (variable), so you’ll want to avoid carrying a balance on this card.
If you want to earn flat-rate cash back on every purchase and avoid a security deposit and annual fee, the Capital One Spark Classic for Business fits the bill.
Note that this card is aimed at applicants with fair credit, however, so you might have a better chance at getting a secured card if your credit has been severely damaged by past missteps.
| Credit Card | Welcome Offer | Rewards Rate | Annual Fee | Intro Purchase APR | Regular APR | Intro Balance Transfer Rate | Regular Balance Transfer Rate | Balance Transfer Fee | Recommended Credit | Card Review |
|---|---|---|---|---|---|---|---|---|---|---|
|
Business Advantage Unlimited Cash Rewards Mastercard® Secured credit card
|
N/A | unlimited 1.5% cash back on all purchases | $0 | N/A | 25.24% | N/A | 25.24% | N/A | N/A | Review Coming Soon |
|
FNBO Business Edition® Secured Mastercard® Credit Card
|
None | None | $39 | N/A | 23.24% Variable | N/A | 23.24% Variable | Either $10 or 5% of the amount of each transfer, whichever is greater | Fair/Poor/Limited | Review Coming Soon |
|
Union Bank® Business Secured Visa® Credit Card
|
No bonus | No rewards | $30 | N/A | 21.99% Variable | N/A | 21.99% Variable | Either $10 or 5% of the amount of each balance transfer, whichever is greater | N/A | Review Coming Soon |
|
Capital One Spark Classic for Business
|
N/A | Unlimited 5% cash back on hotels and rental cars booked through Capital One Travel | $0 | N/A | 28.49% (Variable) | N/A | 28.49% (Variable) | N/A | Fair | Capital One Spark Classic for Business Review |
A secured card gets its name from the fact that you must submit a security deposit (typically in the amount of your desired credit limit) to the issuer.
Note that the deposit doesn’t take care of payments, and you’ll still need to pay off whatever you charge to the card. Instead, the deposit serves to protect the issuer should you default on what you owe. For this reason, secured cards are typically available to people with poor or fair credit, when such applicants might struggle to get other credit cards. When it comes to using a secured card, it functions just like any other credit card.
Minimum deposit amounts vary by card. With secured consumer credit cards, the minimum deposit is often $200. However, for the secured business credit cards on this list, two require a minimum deposit of $500, while the other requires a minimum deposit of $2,200.
Typically, if you pay off your credit card in full and close the account, you can get your security deposit back. Some issuers will also offer you the opportunity to graduate from a secured card to an unsecured card after you demonstrate responsible behavior, and your deposit will be refunded if that happens.
Yes, it’s likely that an issuer will check your personal credit history before approving or denying you for a business credit card. As the business owner, you’ll ultimately be responsible for guaranteeing what’s owed on the card.
In general, business credit cards only report to your personal credit if there’s negative information on your account — for example, if you’ve paid late or missed payments. There are exceptions, however: For instance, most Capital One small business cards will report activity to the cardholder’s personal credit, even when the account is in good standing.
When selecting the cards on this list, the most important criterion was that each card be aimed at small business owners and accessible with a security deposit.
In addition, whether or not each card charges an annual fee was considered. Note that our top overall pick for best secured business card, the Wells Fargo Business Secured Credit Card, charges a $0 annual fee.
Other factors that weighed on the selection included rewards, maximum possible credit limit and interest rate.
The above offers and/or promotions may have since changed, expired, or is no longer available. Check the Issuers’ website for more details.
