Best Secured Business Credit Cards of 2023

To get your typical unsecured business credit card, you need to have a solid business credit history. But what if your business hasn’t built a long credit history yet, or if it has a spotty credit report?

That’s where secured business credit cards come in handy. They work like unsecured cards, with a credit limit you can borrow against and the ability to improve your credit score. But since they require collateral, secured credit cards are easier to qualify for.

There aren’t too many secured business cards out there, but we’ve rounded up the best ones to help you find the best card for your business. The Business Edition® Secured® Mastercard offers the best balance of APR and credit limits for most businesses, but let’s look at all your options.

Applying for a secured business credit card works a lot like applying for an unsecured business credit card. Either way, you’ll submit an application to your card issuer of choice. Your application will include information about yourself and your business, and the credit card company will probably run a credit check before approving you.

The biggest difference? Collateral. Before you can use your secured credit card, you’ll have to offer up collateral in the form of a cash deposit (usually into a specific bank account).

In most cases, your credit limit will be directly tied to how much money you deposit as collateral. For example, your credit limit might be 90% of your collateral deposit. As you can see, that means that secured credit cards don’t work so well for big cash advances or extra working capital. Because really, you’re only borrowing money you already had on hand.

Instead, secured credit cards are designed to help you build credit by developing a good credit history―even if you’re starting with bad credit or no credit. (We also have an article recommending credit cards for bad credit too for your perusal). Your credit card activity will get reported to credit bureaus, which then affects your credit score and overall credit profile.

So as you use your card for business expenses and then repay your balance on time, you’ll start to see improved business credit. Before you know it, you’ll be able to qualify for the best business credit cards―which will be unsecured business credit cards that don’t require collateral.

Need a higher credit limit to cover all the business expenses you plan to pay with your secured business card? The Business Edition® Secured® Mastercard has the highest credit limit you can get.

As we noted above, your credit limit on any secured card will be proportional to how much collateral you deposit. But the Business Edition® Secured® Mastercard lets you deposit more than other secured cards. In fact, you can give yourself a credit limit of up to $110,000―so long as you have the cash. And as an added perk, you’ll even earn interest on your security deposit.

As with the BBVA secured card, though, the Business Edition® Secured® Mastercard has super limited availability. The card issuer, First National Bank of Omaha, operates in just seven states (Colorado, Illinois, Iowa, Kansas, Nebraska, South Dakota, and Texas). Another bummer? This card has an unwaivable annual fee and no formal rewards program (unless you count the interest on your deposit). It does have the lowest APR on our list, though.

So the Business Edition® Secured® Mastercard is the best card under certain criteria. But if you want a higher credit line and you’ve got the cash to get it, the Business Edition® Secured® Mastercard may be the right option for you.

Okay, so the Spark 1% Classic card from Capital One isn’t actually a secured credit card. But this unsecured card has much lower credit requirements than other unsecured business cards do, so it’s easier to qualify for. And, of course, as you use it wisely, you’ll build business credit. That makes the Spark 1% Classic a good alternative to secured credit cards if you don’t want to put up cash as collateral.

The Spark 1% Classic doesn’t have an annual fee, but it does have the highest APR of any card on this list. So if you repay your card balance in full each cycle, this card shouldn’t cost you anything. But if you don’t? Watch out for that high interest rate.

As for rewards, the Spark 1% Classic earns cash back at a flat rate of 1%. That’s nothing to write home about (the Wells Fargo secured card earns more), but it does allow you to get something back for your spending. 

Put simply, the Spark 1% Classic may not be the best unsecured business card out there―but if you’re looking for an accessible alternative to secured cards, it still offers a decent option.

If you don’t mind going with a personal credit card, we’ve got a couple honorable mentions worth looking at.

If your business can get by with a secured personal credit card, the Bank of America® Customized Cash Rewards Secured Credit Card is your best bet.

It has a pretty robust rewards program for a secured card, with up to 3% cash back in some categories and 1% cash back on everything.

Unfortunately, the maximum credit limit on a Bank of America® Customized Cash Rewards Secured Credit Card caps at $5,000―way, way lower than you’d get with a business credit card.

So while we can’t widely recommend the Bank of America® Customized Cash Rewards Secured Credit Card as a secured card for business owners, it might work if you can’t get a business card yet.

The Discover it® Secured Credit Card offers another personal credit card option.

This card earns cash back, with at least 1% rewards on all your purchases and 2% on gas and restaurant purchases (up to $1,000 per quarter). Plus, Discover will regularly review your account to see if you qualify for a higher credit limit.

Even if you do, though, you’ll max out at $2,500―lower than even the Bank of America® Customized Cash Rewards Secured Credit Card.

That means that the Discover it® Secured Credit Card should only be a stepping stone toward better credit (and a better secured card) for your business.

While businesses with poor credit or no credit history may struggle to get approved for secured business cards, unsecured credit cards provide a more accessible alternative. Thanks to a cash deposit that serves as collateral, unsecured cards make it easier to get approved for credit and start improving your credit score.

For most businesses, the Business Edition® Secured® Mastercard offers the best secured card option due to its lower APR and high credit limit. And if you’re open to an unsecured credit option, Spark 1% Classic from Capital One offers many of the same benefits as a secured card.

Regardless of which small-business credit card you go with, responsible credit card usage should help you improve your credit score. So whether you’re starting off with poor credit or no credit, we hope you enjoy the benefits of an improved credit profile.

Getting your first business credit card? Learn more about how to apply for a business credit card.

After researching more than 30 business credit cards, we found one unsecured card and one secured card with low credit requirements and the ability to build credit. We compared availability, rewards, fees, and APR to determine our scoring and rankings for these cards. Due to the limited number of secured business cards, we also analyzed and included some personal secured credit card options.

Disclaimer

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.

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