Building and maintaining strong business credit is vital for any entrepreneur—but it isn’t always easy, especially if you’re just starting out or recovering from past credit issues. That’s where secured business credit cards come in.
These cards offer a low-risk, high-benefit path for small business owners to access credit, manage expenses, and build financial credibility—all while maintaining full control of spending. In this article, we’ll break down how secured business credit cards work, their key advantages, and the best secured business credit cards you should consider in 2025.
What Is a Secured Business Credit Card?
A secured business credit card works much like a traditional credit card, with one key difference: it requires a security deposit. This deposit typically acts as your credit limit. For example, a $1,000 deposit gives you a $1,000 limit.
- While it may seem like you’re using your own money, the real benefit lies in:
- Establishing or rebuilding your business credit profile
- Separating personal and business expenses
- Gaining access to essential cardholder perks
It’s a strategic tool for startups, freelancers, and small businesses with limited or poor credit history.
Why Choose a Secured Business Credit Card?
Here’s why a secured business card is worth considering:
Low Risk
- Your deposit minimizes the issuer’s risk, making approval more likely—even with a low credit score.
- There’s no risk of overspending beyond the deposited amount.
Build Business Credit
- Most secured cards report to business credit bureaus (like Dun & Bradstreet, Experian Business, and Equifax Business).
- On-time payments and responsible use help build or improve your business credit score.
Expense Management
- Helps separate business and personal expenses for tax and accounting purposes.
- Provides monthly reports and online tracking tools for better cash flow management.
Potential to Upgrade
- Many issuers review accounts after 6–12 months of responsible usage and may upgrade you to an unsecured card and return your deposit.
Top Features to Look for in a Secured Business Credit Card
Before choosing a secured card, evaluate:
Credit Reporting: Ensure the issuer reports to major business credit bureaus.
Minimum Deposit: Choose a card that fits your available capital (often $200–$2,500).
Annual Fees: Some cards have no annual fees; others may charge $25–$50.
Upgrade Path: Look for cards that offer a clear upgrade path to unsecured versions.
Rewards & Perks: Some secured cards now offer cashback or vendor discounts.
Best Secured Business Credit Cards in 2025
Here are some of the best secured business credit card options currently available, each with its own unique strengths:
Bank of America Business Advantage Secured Credit Card
Minimum Deposit: $1,000
Annual Fee: $0
Perks: 1.5% cashback on all purchases, optional cashback rewards program
Highlights: Reports to business credit bureaus, flexible upgrade path to unsecured version
Best for: Small businesses with fair credit looking to earn rewards while building credit.
Wells Fargo Business Secured Credit Card
Minimum Deposit: $500
Annual Fee: $25 (waived in some cases)
Perks: Choose between 1.5% cashback or 1 point per $1 (redeemable for travel or gift cards)
Highlights: Up to $25,000 credit line, integrates with QuickBooks
Best for: Businesses wanting higher credit lines and the choice between points or cashback.
Capital One Spark Classic for Business
Deposit: Not required
Annual Fee: $0
Perks: 1% cashback on every purchase
Highlights: Designed for businesses with average credit, easy upgrade path
Best for: Business owners with fair credit who want the benefits of a traditional card.
Secured Mastercard® from First Progress (with EIN)
Minimum Deposit: $200
Annual Fee: $39
Perks: Simple application with no credit check, can be used for business expenses under EIN
Highlights: Fast approval, builds personal and business credit
Best for: Solopreneurs and freelancers starting to build their credit journey.
Pro Tips for Using Secured Business Cards Effectively
Always pay on time – Late payments hurt your credit and defeat the purpose.
Keep utilization low – Use less than 30% of your credit limit when possible.
Monitor reports – Regularly check your business credit profile to track improvements.
Request an upgrade – After 6–12 months of responsible use, contact your issuer for unsecured options.
Final Thoughts
Secured business credit cards are no longer just a backup plan—they’re a smart financial strategy for entrepreneurs looking to build strong foundations. With low risk, clear benefits, and more options than ever before, there’s a card out there to match every small business need.
Whether you’re recovering from poor credit, just starting your business, or simply want to establish a better financial system, choosing one of the best secured business credit cards can open doors to greater financial stability and future growth.
