Wells Fargo Secured Credit Card Review – Small Business Edition

Wells Fargo Secured Credit Card Review – Small Business Edition
Amy Fontinelle
on May 29, 2018
Read in 3 min

No credit history, low credit score, and struggling to get approved for unsecured business funding?

Consider the Wells Fargo Secured Credit Card for Business.

By depositing money in a collateral account, you create a credit line for your business.

Then you build your credit by making timely payments–

All while enjoying the convenience of making purchases with plastic.

Who is the Wells Fargo Secured Credit Card for?

The Wells Fargo Business Secured business credit card is a good option for an entrepreneur looking to establish or rebuild credit.

Approval for small business credit cards depends on the business owner’s personal credit history.

So if you’ve never had a credit card or a business loan before, you’ll have to establish personal credit first.

Alternately, if you’ve had trouble paying your bills on time, suffered a bankruptcy, or been foreclosed upon—

You’ll need to improve your personal credit in order to access competitive business financing tools.

Learn more about how to Compare Small Business Credit Options

Eventually, your business might be large enough to generate a separate business credit score, but having good to excellent personal credit will always be an asset.

Our comprehensive reviews make it simple to identify the best credit card features for your small business.

Wells Fargo Business Secured Credit Card Review of Benefits

Option to upgrade to a secured card

Wells Fargo will periodically review your account for a possible upgrade to an unsecured business credit card.

Credit card expert Beverly Harzog says the typical upgrade time for an unsecured card is 12 to 18 months, depending on your credit score.

Upon qualifying for a secured card, you’ll get your collateral deposit back and you can put that money into your business.

Reported to major credit bureaus

Cardholders say the Wells Fargo Business Secured Credit Card reports their payment history to all three major credit bureaus: Experian, Equifax, and TransUnion.

Having your secured credit card payment history reported to the credit bureaus is essential: it’s what establishes or rebuilds your credit.

Business Rewards

The best cash back business credit cards are unsecured cards, but the Wells Fargo Business Secured Credit Card is competitive.

Their Cash Back Advantage program, which offers a competitive 1.5% cash back per $1 spent, enables you to receive your rewards as a quarterly direct deposit to your bank account.

Rewards are unlimited and are the same regardless of spending category.

Searching for a Cash Back Business Credit Card

No foreign transaction fees

The Wells Fargo Business Secured Credit Card card has no foreign transaction fees, so it’s a good choice for businesses whose owners or employees travel frequently and businesses that make regular purchases from overseas companies.

Limited risk

This card limits your spending to the amount of your collateral deposit.

That deposit will be used to pay any delinquent charges on your account if you stop making payments.

With an unsecured card, you might get a $25,000 credit limit when you can’t afford to spend more than $5,000, which could put you and your employees at risk of overspending.

Wells Fargo Business Secured Credit Card Review of Drawbacks

Limited purchasing power

Because your credit line is equal to your collateral deposit, if you can only afford the $500 minimum deposit, you’ll have a small credit line.

If you can afford to deposit the $25,000 maximum, you won’t experience this potential drawback.

You can’t use your collateral deposit to pay off your balance, so choose your deposit amount carefully.

Annual Fee

You’ll pay a $25 annual fee per card for the Wells Fargo Business Secured credit card.

If you have a business owner card plus five employee cards, you’ll pay a $150 annual fee, so only issue cards to employees whose job duties require one.

Searching for a No Annual Fee Business Credit Card?

Collateral deposit doesn’t earn interest

A hidden cost to tying up money in a collateral deposit for this credit card is that it won’t earn interest.

Interest rates are so low that you won’t miss out on much.

But if you could have earned 1.5% on your $10,000 deposit in a high-yield savings account over a year, the $150 in lost interest is like an additional annual fee.

Limit your deposit to the smallest amount required to meet your company’s monthly credit card purchasing needs.

Wells Fargo Secured Credit Card Details

Annual fee: $25 per card.

Employee cards: up to 10.

Grace period: 21 days interest free on purchases.

APR on purchases: Prime plus 11.90%. (Prime is 4.00% as of 3/16/2018.)

Balance transfer fee and cash advance fee: determined upon approval and disclosed in customer agreement.

Cash advance APR: 20.74% plus prime.

Credit access line: $500–$25,000, equal to your collateral deposit.


The editorial content on this page is not provided by any of the companies mentioned, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone. Additionally, the opinions of the commenters are not endorsed or supported by LendGenius.com. Many of the listings that appear on this website are from companies which we receive compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). The site does not review or include all companies or all available products.

Amy Fontinelle Finance Journalist

Amy Fontinelle is a writer, editor, and personal finance expert.

Her articles have appeared at Investopedia, Bankrate, MassMutual.com, The Simple Dollar, Interest.com, Yahoo, Forbes.com, SFGate.com, Bankaholic, Mortgage-Calc.com, Saving Advice and other sites.

Amy’s clients include personal finance websites, financial institutions, public policy organizations, academic journals, and professional economists.

      Headway Capital

      Important Disclosures. Please Read Carefully.

      Persons facing serious financial difficulties should consider other alternatives or should seek out professional financial advice. This website is not an offer to lend. Lendgenius.com is not a lender or lending partner and does not make loan or credit decisions. Lendgenius.com connects interested persons with a lender or lending partner from its network of approved lenders and lending partners. Lendgenius.com does not control and is not responsible for the actions or inactions of any lender or lending partner, is not an agent, representative or broker of any lender or lending partner, and does not endorse any lender or lending partner. Lendgenius.com receives compensation from its lenders and lending partners, often based on a ping-tree model similar to Google AdWords where the highest available bidder is connected to the consumer. Regardless, Lendgenius.com’s service is always free to you. This service is not available in all states. If you request to connect with a lender or lending partner in a particular state where such loans are prohibited, or in a location where Lendgenius.com does not have an available lender or lending partner, you will not be connected to a lender or lending partner. You are urged to read and understand the terms of any loan offered by any lender or lending partner, and to reject any particular loan offer that you cannot afford to repay or that includes terms that are not acceptable to you. By submitting your information via this website, you are authorizing Lendgenius.com and/or lenders and lending partners in its network or other intermediaries to do a credit check, which may include verifying your social security number, driver license number or other identification, and a review of your creditworthiness. Credit checks are usually performed by one of the major credit bureaus such as Experian, Equifax and Trans Union, but also may include alternative credit bureaus such as Teletrack, DP Bureau or others. You also authorize Lendgenius.com to share your information and credit history with its network of approved lenders and lending partners. For qualified consumers, our lenders offer loans with an Annual Percentage Rate (APR) of 35.99% and below. For qualified consumers, the maximum APR (including the interest rates plus fees and other costs) is 35.99%. All loans are subject to the lender’s approval based on its own unique underwriting criteria. Example: Loan Amount: $4,300.00, Annual Percentage Rate: 35.99%. Number of Monthly Payments: 30. Monthly Payment Amount: $219.36. Total Amount Payable: $6,581.78 Loans include a minimum repayment plan of 12 months and a maximum repayment plan of 30 months. In some cases, you may be given the option of obtaining a loan from a tribal lender. Tribal lenders are subject to tribal and certain federal laws while being immune from state law including usury caps. If you are connected to a tribal lender, please understand that the tribal lender’s rates and fees may be higher than state-licensed lenders. Additionally, tribal lenders may require you to agree to resolve any disputes in a tribal jurisdiction. You are urged to read and understand the terms of any loan offered by any lender, whether tribal or state-licensed, and to reject any particular loan offer that you cannot afford to repay or that includes terms that are not acceptable to you.

      Lender’s or Lending Partner’s Disclosure of Terms.

      The lenders and lending partners you are connected to will provide documents that contain all fees and rate information pertaining to the loan being offered, including any potential fees for late-payments and the rules under which you may be allowed (if permitted by applicable law) to refinance, renew or rollover your loan. Loan fees and interest rates are determined solely by the lender or lending partner based on the lender’s or lending partner’s internal policies, underwriting criteria and applicable law. Lendgenius.com has no knowledge of or control over the loan terms offered by a lender and lending partner. You are urged to read and understand the terms of any loan offered by any lenders and lending partners and to reject any particular loan offer that you cannot afford to repay or that includes terms that are not acceptable to you.

      Late Payments Hurt Your Credit Score

      Please be aware that missing a payment or making a late payment can negatively impact your credit score. To protect yourself and your credit history, make sure you only accept loan terms that you can afford to repay. If you cannot make a payment on time, you should contact your lenders and lending partners immediately and discuss how to handle late payments.