Wells Fargo Business Secured Credit Card Review

For organizations establishing or rebuilding credit, the Wells Fargo Business Secured Credit Card might be a good starting point. It’s difficult to find secured business cards on the market, so this option is a boon for business owners with thin credit files or average scores. 

As with any other secured card, you’ll need to make a deposit equal to the credit line you want to deploy. Those amounts range from $500 to $25,000, and periodically, Wells Fargo will assess your eligibility to move to an unsecured program. In the meantime, you’re earning either cash-back rewards or points on purchases, which is a rare find in today’s business credit card environment.

Down to business with the Wells Fargo Business Secured Credit Card

  • APR: Standard variable APR that adds 11.90% to the current prime rate. There are no introductory offers for new purchases or balance transfers. 
  • Annual Fee: $25
  • Reward Rates: You’ll earn either points or cash-back rewards. If you choose cash back, you’ll get 1.5% on every purchase. If you choose points, it will be at a ratio of one point per dollar.
  • Intro Offer: There are no welcome bonuses per se. However, should you spend $1,000 or more in any one month, you’ll rack up an additional 1,000-point bonus.

 Perks and features of the Wells Fargo Business Secured Credit Card

  • No foreign transaction fees: If you or any employees travel internationally, you won’t incur any foreign transaction fees on purchases outside U.S. borders. With other cards, those fees could amount to as much as 3% per transaction.
  • Retailer discounts: At the Earn More Mall, cardholders will be able to redeem points at many different retailers, all of which offer some type of discount or point bonus on qualified purchases online or at physical locations.
  • Zero liability protection: Wells Fargo will reimburse you for any unauthorized purchases made with the card.  You can also sign up to receive alerts via text message, email or phone call regarding any suspicious activity on your account.
  • Employee cards: You can elect to receive cards for up to 10 employees for an additional $25 annually per card issued. Owners can track employee business expenses via the Wells Fargo online portal.
  • Overdraft protection: If you’re a Wells Fargo business checking account owner, you can link your card to that account to prevent the penalties and inconveniences resulting from overdrafts.

Is the Wells Fargo Business Secured Credit Card right for my business? 

The Wells Fargo Business Secured Credit Card is built for businesses attempting to build or rebuild credit. If you fall into that category and are looking to eventually acquire a small business loan or business line of credit, this card will get you a step closer to that objective. You’ll just need to make sure you have the reserves to set aside the required deposit to secure the credit line, and you’re on your way.

It’s also good to know you can earn rewards that go straight to your bottom line or accumulate cash-back points that you can redeem for merchandise or airfare. If you were to spend $2,000 monthly on the card, you’d receive $90 in the form of a quarterly statement credit or deposit into an eligible checking or savings account. That’s $360 annually, which more than overcomes the nominal annual fee. In this scenario, you would have to plunk down $2,000 for security and pay the balance in full each month.

Obviously, businesses with good credit scores shouldn’t need to obtain a secured credit card. To avoid a hard hit on your profile, which could adversely impact your credit standing, you’ll want to know where you stand by using any service that gives you free scores without negatively affecting them. If all signs point to approval for an unsecured card, that will likely be the route you take. Furthermore, if you do need a secured option and cash flow is tight and savings are scarce, you might not have the means to set aside the Wells Fargo minimum.

Even in the limited world of secured business credit cards, you could find an option like the Capital One Secured Mastercard, which requires smaller deposits to open an account. This card only requires deposits between $49 and $200, so you can start out small and progress to higher limits or an unsecured card. You won’t need to fork over an annual fee for this card, but it doesn’t offer any rewards like cash back or points. Nonetheless, it’s a good start for one-person operations that need to put one foot in front of the other on the path to more alluring financing programs.

The bottom line

The Wells Fargo Business Secured Credit Card plays its part in your business financing plans if you’re building or repairing creditworthiness. A nice complement to that journey is the ability to earn cash back on a quarterly basis or accumulate points to redeem for items you might need in your daily business pursuits. If you have the wherewithal on the asset side, you can secure a generous credit line of up to $25,000, which can help supplement cash flow for operations.

If you’re teetering on the edge of good credit, it may benefit you to analyze whether you can acquire an unsecured card. You won’t need to part with a deposit, and approval bodes well for the ability to expand your financing horizons. If you simply need to take small steps toward more compelling options, you could also start smaller by using a card that requires a very small cash outlay and then building from there.