Best Secured Business Credit Cards – Build Business Credit Easily

February 18, 2023 By Marco Carbajo

Best Secured Business Credit Cards

How can you get a business credit card if you have less than perfect credit? If your goal is to strengthen or build business credit, this post is for you.

You’ve probably heard a secured credit card can be a good option to build or rebuild your personal credit. But what about businesses?

As a business owner, you need a different approach: a secured business credit card that builds your business credit.

What Is a Secured Business Credit Card?

A secured business credit card requires a refundable deposit before a card account can be opened. With the majority of secured business credit cards, the amount you deposit becomes the credit limit of the card.

You will also need to link your business bank account to the card account in order to load the security deposit to your card and make future credit card payments.

Keep in mind with a secured business credit card, you can make purchases just like a regular credit card. With this card, your payment history is reported to business credit reporting agencies such as Dun & Bradstreet, Experian Commercial and Equifax Small Business to name a few.

The main benefit to secured business credit cards is the ease of approval. You don’t need good credit to qualify. Secured business credit cards are designed for business owners who have less than perfect credit or little to no credit history.

Let’s face it, credit cards are an essential tool needed for day-to-day business activities. If you’re paying for supplies, booking a hotel, purchasing airline tickets for business travel, or simply taking a client out to lunch; a business credit card is a must.

Putting a small deposit down for a business credit card is a smart decision. It helps you build business credit, keeps personal and business expenses separate, and may potentially lead you to acquiring an unsecured business credit card.

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Looking for Secured Business Credit Cards?

April 26, 2010 By Marco Carbajo

Secured Business Credit Cards

While consumers have more than enough secured credit card offers to choose from it seems to be more of a challenge for small business owners.

If you are having a hard time finding the right secured business credit cards for your company don’t worry because I’m hoping this post will point you in the right direction.

What’s most important is first ensuring that the secured card you select as a business does in fact report to the business credit reporting agencies not your personal files.

Most of the cards you hear about that help rebuild your credit are for consumers and not for businesses. You also have to be careful because some of these cards will hurt your credit rather than help it.

What I mean is that some cards in the marketplace are issued by high risk lenders and by having these types of cards reporting on your files will automatically identify you as a high risk to other lenders in the industry.

For example, First Premier Bank is known as a high risk lender and its rates prove it. They even offer a card with a 79.9% interest rate for the riskiest of borrowers.

So stay away from secured credit card offers from high risk lenders like First Premier Bank. You may want to consider Open Sky Secured Visa Credit Card or some of the other secured credit cards listed in my blog.

Now when it comes to your business I would suggest applying for a business credit card that does not report to your personal credit. These types of unsecured business lines of credit require strong personal scores but the cards you obtain do not report to your personal credit.

If you have less than stellar credit consider opening a couple of fleet credit cards which we provide in our business credit building system.

Keep in mind with a secured fleet credit card your deposit equals your credit limit but it doesn’t work like a debit card. The money you have on deposit is untouched and is simply security in case you default on your payments.

The larger the deposit ($1,000+) you can put down the greater the credit limit your card will be. Best of all the higher the credit limit the better it reflects on your business credit files.

If the funds are a bit of a stretch there are also other secured business credit cards that only require a $500 deposit that report to the business credit bureaus as well.

Once you have a secured card it’s important to keep the account active by using it to make business purchases. Keep the debt to credit utilization low which is typically no more than 30%.

You also need to pay your bill ahead of schedule and if possible increase your deposit at least once every six months. Remember, your goal is to eventually qualify for unsecured business credit cards and it all starts with establishing a solid payment record on your files.

After six months of on time payment history you can also request an account review to see if you qualify for a credit limit increase with no additional security deposit.

So when it comes to secured business credit cards I encourage you to select the right card, make a deposit, make business purchases, pay ahead of time, increase your limits and request a review after six months.

Looking for more secured and unsecured business credit cards that report to the business credit bureaus? Become a member of my Business Credit Insiders Circle and gain access to a proven step-by-step business credit building system. A system that provides you access to vendor lines of credit, fleet cards, business credit cards with and without a PG, funding sources and lenders that report to all the major business credit bureaus. Submit your name and email below for details and receive a free business credit building audio seminar ($597 value) =>

Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. He is a business credit blogger for AllBusiness, a subsidiary of Dun and Bradstreet and author of “Eight Steps to Ultimate Business Credit” and “How to Build Business Credit with No Personal Guarantee.” His articles and blogs have also been featured in the SBA Community, American Express Small Business, Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain.

Establishing Business Credit with a Secured Business Credit Card

January 25, 2010 By Marco Carbajo

Secured Business Credit Card

Recently I posted how credit restoration is a viable strategy for small business owners in personal credit recovery. In addition to repairing your personal credit you should also focus on building and if necessary repairing your business credit as well. One of the best ways to start establishing business credit is through a secured business credit card.

These types of credit cards are specifically designed for businesses with no credit or less than perfect credit history. When you apply you are required to submit a security deposit that will establish an initial credit line. In most cases a minimum deposit of $500-$1,000 is required and once you begin using your card you will receive invoices like a standard unsecured business credit card.

As you pay your invoices your payments will get reported to the business credit bureaus. I always encourage my members to use a secured business credit card along with vendor credit lines because it will allow you establish a strong blend of account types on your files.

Some of the secured business credit cards we have listed report solely to one bureau like Corporate Experian while others report to two or all three of the major business credit bureaus. Keep in mind that your deposit is only used to pay off the debt in the event that you default on making payments.

As soon as you receive your card you can start using it to make purchases for your business. When you charge a purchase just simply pay the invoice when it comes due. Now remember the whole purpose of using the card is to build credit so don’t be late on your payments. After six months you can request that your account be reviewed for a credit limit increase without requiring a larger security deposit.

Some other benefits of a secured business credit card include:

Universal Acceptance
Cash Back Programs
Online Expense Management
Easy Funding Options

Before you apply you will need to have your company’s business license, articles of incorporation, address verification, federal tax ID#, banking reference and general business information. You will also need to list authorized users and how many cards you are requesting.

You can send your security deposit via wire transfer and typical turnaround times take 7-10 business days. Keep in mind that before you select any secured business credit card make sure you read the terms and conditions completely and verify which business credit bureau they report to.

Another advantage to using secured business credit cards is the separation between your personal credit and business credit. In my opinion these types of business credit cards are ideal for every small business owner because it not only establishes business credit but also controls spending, eliminates personal liability and protects your personal credit files.

Looking for the best secured business credit cards? Become a member of my Business Credit Insiders Circle and gain access to a proven step-by-step business credit building system. A system that provides you access to secured business credit cards, vendor lines of credit, fleet cards, business credit cards with and without a personal guarantee, funding sources and lenders that report to all the major business credit bureaus. Submit your name and email below for details and receive a free audio seminar ($597 value) =>

Marco Carbajo

Marco Carbajo is a business credit specialist, author, speaker, and founder of the Business Credit Insider’s Circle. He is a business credit blogger for AllBusiness.com, a subsidiary of Dun and Bradstreet and author author of “Eight Steps to Ultimate Business Credit” and “How to Build Business Credit with No Personal Guarantee.” His articles and blogs have also been featured in American Express Small Business, Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain.