Wells Fargo Business Secured Credit Card Review

Wells Fargo has been providing banking services for over 160 years. The company offers a variety of credit cards, with different features and benefits to meet the needs of their customers.

Secured Credit Card from Wells Fargo

BEST FOR

Owners of businesses with bad credit

• Option 1: Earn 1.5 percent cash back on every dollar spent.
• Option for Reward Points: Earn 1 point for every $1 spent, plus 1,000 extra points if your business spends $1,000 or more in a monthly billing period.
• There is no yearly charge for the rewards program.
• A credit line of $500 to $25,000 is available.
• There is no risk of responsibility.

Pros

• With a credit score of less than 580, approval is possible.
• Fixed-rate cash back or points rewards are your options.

Cons

• A security deposit of at least $500 is required.
• Has a yearly charge

Features

• Purchase Protection: If an item is damaged or stolen within 90 days of purchase, Wells Fargo will fix, replace, or refund you.
• Studio for Design: On your credit card, include a personal picture or a company design.

For companies that need to build or enhance their company credit, the Wells Fargo Business Secured Credit Card is an excellent choice. Depending on the size of the security deposit, credit lines vary from $500 to $25,000. By reporting payment and user activity to the major credit agencies, this business credit card aids in the development of company credit.

Who Should Use a Wells Fargo Business Secured Credit Card?

• Companies having a poor credit history or a low credit score: The Small Business Financial Exchange receives information on payments from Wells Fargo, which helps companies establish or enhance their credit.
• Owners with cash reserves of up to $25,000: A cash deposit of $500 to $25,000 is required for the Wells Fargo Business Secured Credit Card. Wells Fargo provides a credit line depending on the security deposit amount.
• Those who are unable to get unsecured company credit cards include: The Wells Fargo Secured Company Credit Card may be used to pay for business expenditures, manage staff spending, and establish credit just like a normal business credit card. It also aids your future eligibility for an unsecured small company credit card.

How Do We Assess Secured Credit Cards for Businesses?

We give the annual fee and continuing annual percentage rates (APRs) the most weight when evaluating business secured credit cards like the Wells Fargo Business Secured Credit Card. The card’s rewards, security deposit, introductory APR, and any other costs are also taken into account.

Fees on the Wells Fargo Business Secured Credit Card

• APR for the first time: None
• APR: Prime + 11.90% (ongoing)
• Fee: $25 per year
• Fees for balance transfers vary per account.
• Fees for international transactions: none
• Cash advance charge is 4% or $10, whichever is higher; cash advance APR is the prime rate plus 20.74 percent.

Rewards from the Wells Fargo Business Secured Credit Card

• For every $1 spent on total net expenditures, you’ll get 1.5 percent cash back, or
• 1 point for every $1 spent on net purchases, with 1,000 extra points for spending $1,000 or more in a monthly billing period.

There is no welcome offer.

Depending on your preference, you may earn cashback or rewards points with the Wells Fargo Business Secured Credit Card. Each quarter, cashback may be deposited to your account or an eligible checking or savings account.

You may redeem your points for gift cards, goods, airline tickets, and more if you choose to earn rewards points. You must pay a $24 redemption charge when redeeming points for airline tickets. When you redeem points online, you will get a 10% bonus.

Features of the Wells Fargo Business Secured Credit Card

Purchase Assurance

Purchase assurance covers eligible goods bought with your Wells Fargo Business Secured Credit Card if they are stolen or damaged during the first 90 days of purchase. Wells Fargo will replace, repair, or refund you up to $10,000 per item, with a total annual limit of $50,000.

Credit Reviews on a Regular Basis

Wells Fargo will periodically examine your account and recent credit history to see whether you qualify for an unsecured business credit card upgrade. There is no fixed time frame for when you may be eligible. Many variables influence your ability to upgrade to an unsecured card, including your payment history, credit score, and credit usage ratio.

Design Studio

Wells Fargo has a one-of-a-kind feature that enables you to personalize the look of your Wells Fargo business credit card by uploading a picture that symbolizes your company to its online studio. Your company logo, storefront, or product line may all be used, and this picture will show on your protected business credit card.

Alternatives to the Wells Fargo Business Secured Credit Card

Secured Visa Business Credit Card from BBVA Compass

BEST FOR

Businesses based in the Southern or Southwestern United States

$80 (Waived First Year)

• The first year’s low $40 yearly cost is waived.
• Your available credit is equal to 90% of the amount in your savings account.
• Earn one point for every dollar spent, plus earn three times the points at office supply shops and two times the points at petrol stations and restaurants.
• Online account management services
• Employee cards are provided free of charge.

Pros

• There is no need to verify your credit history.
• For the first 12 months, the annual charge is free.

Cons

• Alabama, Florida, Texas, Arizona, Colorado, California, and New Mexico are the only states where it is accessible.
• Your credit limit will be 90% of your security deposit amount.

• Purchase protection: If your qualifying goods are stolen or damaged during the first 90 days of purchase, BBVA Compass will replace, repair, or refund you.
• Travel accident insurance: When you use your business credit card to pay for transportation, you’ll get up to $500,000 in coverage for travel incidents.
• Auto rental collision damage waiver: When you rent an eligible automobile with your BBVA Compass Secured Visa® Business Card Rewards card, you’re protected from damage caused by accident or theft.

Mastercard Secured

BEST FOR

Rebuilding your credit score

• There’s no annual charge, and you’ll get all the credit-building advantages if you use your card responsibly.
• Unlike a prepaid card, it helps you establish credit by reporting to the three main credit agencies on a regular basis.
• After paying a security deposit of $49, $99, or $200, you will get an initial credit line of $200.
• After completing your first five monthly payments on time, you’ll be eligible for a larger credit limit with no extra deposit required.
• Easily manage your account online, over the phone, or via our mobile app, 24 hours a day, 7 days a week.
• It’s a credit card that’s accepted at millions of places all around the globe.

Pros

• Get a $200 credit line as a start.
• After paying your first five monthly payments on time, you’ll be eligible for increased credit limits.
• Choose your own due date and payment method each month.

Cons

• APR continues to be high.
• A security deposit of $49, $99, or $200 is required.
• There is no incentive scheme.

• When you buy your trip ticket with a credit card, you may get travel insurance for a covered loss at no additional cost.
• Extended warranty protection: On qualifying purchases, you’ll get an extra year of warranty protection for free.
• Vehicle rental insurance: If you hire a car using your credit card, you may be protected from damage caused by an accident or theft.

Discover it

BEST FOR

Owners of small businesses who need assistance in repairing their personal credit

• There is no annual fee, you may get cashback, and you can improve your credit by using it responsibly.
• This is a genuine credit card. The three main credit bureaus can help you establish a credit history. Debit and prepaid cards, in general, can’t help you establish a credit history.
• After you’ve been accepted, you’ll need to provide a refundable security deposit ranging from $200 to $2500 to establish your credit line. When submitting your deposit, you must provide your bank details.
• Automatic reviews begin at 8 months to see whether we can move you to an unsecured line of credit and refund your deposit.
• Every quarter, get 2% cashback at gas stations and restaurants on up to $1,000 in total purchases. Additionally, get an unlimited 1% cashback on all other purchases.
• Get 100% customer support from the United States and a free Credit Scorecard with your FICO® Credit Score.
• When you sign up for Discover, it will monitor hundreds of dangerous websites and send you free Social Security number warnings.

Pros

• Earns cash back incentives on a regular basis.
• The deposit is refunded.
• FICO credit ratings are available for free.

Cons

• A $200 security deposit is required.
• There is no 0% APR term.
• APR continues to be high.

• FICO Credit Score: Get FICO credit ratings and monitoring for free.
• Get a free Experian credit report and dark web monitoring with Discover Identity Alerts.
• Freeze it: Stop account activity in the case of suspected card activity or if your card is lost or stolen to protect your account.

Conclusion

The Wells Fargo Company Secured Card is ideal for business owners who want to develop or enhance their credit while still receiving fixed-rate cash back or rewards points on every purchase. Wells Fargo does not disclose payment and use activity to consumer credit agencies, which helps improve corporate credit.

Frequently Asked Questions

What credit score is needed for a Wells Fargo Business Credit Card?

A Wells Fargo business credit card is not available to individuals with a credit score below 600.

Does Wells Fargo business secured credit card report to Dun and Bradstreet?

Wells Fargo does not report to Dun and Bradstreet.