To understand how a secured credit card works, consider that card providers require some sort of guarantee that you’ll repay your outstanding balances. Most credit cards use a credit score as the gauge of how likely you are to repay your bills. When your credit score isn’t up to par, something else has to take its place to lower a card provider’s risk.  Secured credit cards require a refundable cash deposit as a guarantee. The amount you contribute typically becomes your credit limit. If you default on the card balance, the card provider will keep the deposit to cover the unpaid balance. If you manage the secured card responsibly, the card provider will likely report the positive activity to the credit bureaus, helping you rebuild your credit. You may even get an unsecured credit limit increase and receive your deposit back. ZDNet’s Wells Fargo Business Secured Credit Card review provides a detailed look at the card.   

Here’s an overview of the card’s pros and cons, features, and rewards.


Build (or restore) your company’s credit historyCredit limit of up to $25,000Possibility to upgrade to unsecured creditPayment history gets reported to the Small Business Financial Exchange  Choose to earn cashback or rewards pointsGet 10% more points during online redemptionUp to 10 employee cards availableActivity isn’t reported to the consumer credit bureaus, protecting your personal credit score


Requires a cash outlay of $500 to $25,000 to secure a similar credit limitNo sign-up bonuses are availableLimited business credit card perksIt won’t help rebuild your personal creditMust be a Wells Fargo business bank account customer to apply

The legal business name, phone, and addressCompany tax ID or Social Security numberThe Wells Fargo business account infoBusiness typeNumber of business owners with 25% ownership or greater, to be listed as account guarantorsYour company’s gross annual revenue

You’ll also be asked for personal details such as your date of birth, citizenship, and Social Security number. However, Wells Fargo will not pull your credit report.  You can request up to 10 employee cards and use the Wells Fargo Business Secured Credit Card the same way you’d use other credit cards. It’s important to spend wisely and make your payments on time for a couple of reasons. Wells Fargo will report your usage to the Small Business Financial Exchange to establish a credit history. Plus, the bank will periodically review your business accounts and card activity to determine if you’re eligible for an unsecured business credit card. If you’re offered an unsecured credit card, it may take about 30 days to receive your security deposit back. 

General inquiries: 1-800-416-8658Account maintenance: 1-800-225-5935

Or you could apply for a business card that uses your personal credit score to approve you for a card. However, all usage will affect your personal credit history – even if it’s business-related.