The best secured business credit cards in December 2024

A secured business credit card is a credit card designed specifically for businesses building or rebuilding their credit profiles. Unlike traditional credit cards, these cards require a security deposit that serves as collateral and typically matches your credit limit dollar for dollar — deposit $2,000, and you'll get a $2,000 credit line. This arrangement creates a safety net for card issuers, making them more willing to extend credit to companies with limited financial history or previous credit challenges.

Beyond the security deposit requirement, these cards function much like regular credit cards, allowing companies to make purchases, manage expenses, and build business credit through responsible use. When you make consistent, on-time payments, issuers report this positive behavior to major business credit bureaus, helping establish or improve your company's credit standing.

The main distinction between secured and unsecured credit cards lies in their fundamental structure and accessibility. Secured credit cards require an upfront cash deposit that typically equals your credit limit — so a $500 deposit gets you a $500 credit limit. This deposit acts as collateral, protecting the card issuer if you default on payments. Unsecured credit cards, however, require no such deposit and extend credit based purely on creditworthiness, often offering more generous credit limits determined by factors like your income, credit score, and overall financial profile. This difference in structure directly affects who can qualify for each card type, with secured cards being more accessible to those with limited credit history or those rebuilding their credit, while unsecured cards generally require good to excellent credit scores and a proven track record of responsible credit management.

Despite requiring collateral, secured cards often come with higher fees and interest rates than their unsecured counterparts. You might face annual fees, maintenance charges, and APRs above 20%, while also missing out on potentially robust corporate credit card rewards, sign-up bonuses, and travel perks typically offered by unsecured cards. This creates an interesting paradox where those who might need the most financial flexibility end up paying more for basic credit card services. The rewards landscape heavily favors unsecured cards, with secured options rarely providing benefits beyond their primary function as credit-building tools. When secured cards do offer rewards, they're usually modest compared to unsecured options.

Think of secured cards as training wheels for your credit journey — necessary for some, but temporary by design. After demonstrating responsible use — typically 12 to 18 months of on-time payments — many issuers will return your security deposit and transition you to an unsecured card. Both card types report to major credit bureaus, helping you build credit history through responsible use, though some secured cards may not report to all three major bureaus. Your choice between secured and unsecured cards should align with your current financial situation and credit goals, understanding that while secured cards may seem more restrictive, they serve a valuable purpose in providing opportunities for those who might otherwise be unable to access credit.

Accessing credit can be challenging for entrepreneurs and small business owners, especially when they are first starting out. Secured business credit cards offer a practical solution, providing a stepping stone to building business credit while maintaining financial flexibility. Here are four significant benefits that make secured business credit cards an attractive option for growing companies.

1. Easier qualification process

Unlike traditional business credit cards, secured cards have more lenient approval requirements because they're backed by a security deposit. This makes them particularly valuable for startups and businesses with limited credit history. The security deposit, which typically equals your credit limit, reduces the issuer's risk, making them more willing to approve applications from newer businesses or those with less-than-perfect credit scores.

2. Effective business credit building

A secured business credit card serves as an excellent tool for establishing and improving your business credit profile. When you use the card responsibly and make timely payments, issuers report your positive payment history to major business credit bureaus. This consistent reporting helps build a strong business credit score, which can unlock better financing options and terms in the future.

3. Clear separation of personal and business expenses

One of the most practical benefits of a secured business credit card is the ability to keep personal and business expenses separate. This separation is crucial for operational efficiency, accurate bookkeeping, tax preparation, and maintaining proper business records. Having dedicated business transactions makes it easier to track business expenses, monitor cash flow, and identify tax-deductible purchases.

4. Predictable credit limits and lower risk

The security deposit requirement of secured cards actually offers a hidden advantage: it helps businesses avoid taking on more debt than they can handle. Since your credit limit is typically equal to your deposit, you have a clear understanding of your spending capacity. This built-in spending limit can help develop disciplined spending habits and protect your business from overextending itself financially.

Building a successful business requires financial tools that fuel growth, but secured business credit cards often hold companies back instead of propelling them forward. These cards present a maze of limitations, from frozen capital in security deposits to hefty fees that eat into profits, creating obstacles for businesses trying to scale. Before committing your business's precious resources to a secured card, it's worth weighing the significant drawbacks that could affect your company's financial flexibility and growth potential.

1. Capital-intensive security deposit requirement

Secured business credit cards present a significant upfront hurdle that can be challenging to overcome. The mandatory security deposit, which often starts at $500 and can climb well above $5,000, hinders resource optimization by effectively freezing your working capital at a time when your business might need it most. Think of it as taking money from your business's growth potential and locking it away in a vault — while this deposit is indeed refundable, it remains unavailable for crucial business operations like purchasing inventory, investing in equipment, or funding marketing campaigns that could drive revenue growth.

2. Lower credit limits compared with unsecured cards

The credit limit structure of secured business cards creates a frustrating paradox for many business owners. Since your spending power is typically capped at the amount of your security deposit, you're essentially borrowing against your own money but with added restrictions. This limitation becomes particularly problematic when dealing with larger business expenses or when trying to manage multiple recurring payments. Many business owners find themselves in the awkward position of having to split larger purchases across multiple payment methods or maintain additional credit sources just to handle routine business operations.

3. Higher fees and interest rates

Despite requiring collateral in the form of a security deposit, secured business credit cards often come with a surprising array of costs that can eat into your bottom line. Interest rates frequently hover in the higher ranges, sometimes exceeding 20% APR, while various fees seem to multiply like rabbits — annual fees, maintenance fees, employee card fees, and even fees for basic services that come standard with unsecured cards. The irony isn't lost on business owners: you're paying premium prices for a secured product — like paying extra for a gym membership where you have to bring your own equipment.

4. Limited rewards and business benefits

When it comes to perks and rewards, secured business credit cards often feel like they're stuck in the economy section while their unsecured counterparts are flying first class. The rewards programs, if they exist at all, typically offer minimal returns on your spending, and you'll often search in vain for the attractive sign-up bonuses that grace other business cards. The business management tools and reporting features tend to be basic at best, lacking the sophisticated expense tracking and integration capabilities that modern businesses need. It's rather like being invited to a gourmet restaurant only to find out you're limited to the kids' menu.

1. Bank of America® Business Advantage Unlimited Cash Rewards Mastercard® Secured

The Bank of America® Business Advantage Unlimited Cash Rewards Mastercard® Secured is designed to help small business owners build or improve their credit while earning unlimited 1.5% cash back on every purchase. The card requires a refundable security deposit as collateral, ranging from $1,000 to $10,000, which determines your credit limit. Cardholders benefit from no annual fee, access to free credit management tools, and compatibility with Bank of America business accounts for seamless financial tracking.

• Annual fee: $0
• Required deposit: $1,000 minimum security deposit (deposit will equal your requested credit limit)
• Regular APR: 27.99%
• Foreign transaction fee: 3%

Key benefits

• Unlimited 1.5% cash back on all purchases
• Free employee cards with spending controls
• Comprehensive business management tools

Drawbacks

• Higher minimum security deposit compared to other options
• Requires a personal guarantee, so personal assets can be at risk
• Relatively high foreign transaction fee
• 4% balance transfer fee

Who this card best suited for

Bank of America’s Business Advantage card is ideal for businesses focused on building credit who understand that late payments will impact both business and personal credit scores due to its personal guarantee requirement. It's best suited for financially disciplined companies that can manage a higher initial deposit while wanting to earn rewards on their everyday business spending.

2. Valley Bank Visa® Secured Business Credit Card

The Valley Bank Visa® Secured Business Credit Card is tailored for small business owners looking to establish or rebuild their business credit while managing everyday expenses. As a secured card, it requires a cash deposit as collateral, which determines the credit limit. Cardholders can access competitive interest rates, detailed expense tracking tools, and the reliability of Visa's global acceptance.

• Annual fee: $0
• Security deposit required: $300 minimum security deposit (deposit will equal your requested credit limit up to $5,000)
• Regular APR: 28.49%
• Foreign transaction fee: 2%

Key benefits

• 0% intro APR
• Auto rental collision damage waiver
• Emergency card replacement service
• Zero fraud liability protection

Drawbacks

• Limited rewards program
• Higher APR than some alternatives
• 3% balance transfer fee
• Requires a personal guarantee, so personal assets can be at risk

Who this card best suited for

Valley Bank Visa Secured Business Credit Card is a smart choice for business owners looking to finance large purchases with its 0% introductory APR, though careful planning is essential since personal assets are tied to the guarantee. It's particularly valuable for those who need a low barrier to entry and can confidently repay their balance before the regular APR kicks in.

3. First National Bank Business Edition® Secured Visa Card

The First National Bank Business Edition® Secured Visa Card helps business owners establish or rebuild their business credit while earning a credit limit equal to a refundable security deposit, which can range from $2,000 to $100,000. The card offers detailed spending reports, fraud monitoring, and Visa's worldwide acceptance for managing business expenses efficiently. Businesses also have access to a no-penalty APR, customizable payment due dates, and tools to streamline financial management.

• Annual fee: $39
• Security deposit required: $2,000 minimum (deposit will equal your requested credit limit up to $10,000)
• Regular APR: 25.99%
• Foreign transaction fee: 3%

Key benefits

• High potential credit limit
• Business credit bureau reporting
• Online account management
• Purchase protection

Drawbacks

• Annual fee
• High minimum deposit
• No rewards program
• Requires a personal credit check

Who is this card for

First National Bank Business Edition Secured Visa Card is designed for businesses focused on building credit, though approval requires both a personal credit check and a high minimum deposit of $2,000. It's best for business owners with decent personal credit who need higher credit limits and don't mind paying an annual fee to access basic business features.

4. Capital One Quicksilver Secured Cash Rewards Credit Card

The Capital One Quicksilver Secured Cash Rewards Credit Card is designed for individuals looking to build or rebuild credit while earning unlimited 1.5% cash back on every purchase. It requires a refundable security deposit starting at $200, which determines the initial credit limit, with opportunities for credit line increases through responsible use. With no annual fee, automatic credit monitoring tools, and cash back rewards with no expiration dates, this card is popular for individual users but is not designed for business use cases.

• Annual fee: $0
• Security deposit required: Minimum of $200 (deposit will equal your requested credit limit up to $3,000)
• APR: 29.99%
• Foreign transaction fee: N/A

Key benefits

• ​​1.5% cash back on all purchases
• No foreign transaction fees
• Automatic credit line review after six months
• Capital One business benefits and security features

Drawbacks

• Highest APR among competitors
• Lower maximum credit limit than some alternatives
• No introductory APR offer

Who is this card for

The Capital One Quicksilver Secured Cash Rewards Credit Card is great for individuals who want to build credit with a low minimum deposit while earning 1.5% cash back on all purchases, though they'll need to work within the maximum $3,000 credit limit. While not designed to be a business credit card, it's ideal for solo-preneurs with lower spend ceilings who value no foreign transaction fees and automatic credit line reviews.

If you're hesitant about tying up your business capital in a secured credit card's security deposit, Brex offers a compelling corporate credit card program that might better suit your growing business. Unlike traditional secured business credit cards, Brex offers high-limit business credit cards with no personal guarantee and doesn’t require a security deposit.

Many consider Brex because it offers:

Instant access to higher credit limits

While secured cards limit your spending to your security deposit amount, Brex determines your credit limit based on your business's cash balance and projected cash flow. This dynamic approach means you could access significantly higher spending power without locking up your working capital. For growing businesses, this flexibility becomes important when managing larger expenses and scaling operations. Whether you need to make substantial inventory purchases or invest in new equipment, Brex's high limit business credit cards ensure you're never constrained by an arbitrary security deposit.

"As a hard tech startup, we have a lot of equipment and supplies to buy all the time, and Brex offered us a substantially higher credit limit. That was really valuable for us and showed that Brex could flex with our business as a true partner.” — Nishant Karandikar, Strategy and Operations Lead, Limelight Steel

No personal credit check required

In some cases, business credit cards can affect personal credit. But Brex takes a fundamentally different approach to credit evaluation compared with secured cards to mitigate that risk. Instead of scrutinizing your personal credit history, Brex evaluates your business based on its cash balance and revenue potential. This separation of personal and business credit provides a cleaner way to build your business credit profile while protecting your personal credit score. This approach particularly benefits entrepreneurs who may have a limited personal credit history but run financially sound businesses.

Superior rewards structure

Brex rewards stand head and shoulders above what secured cards typically offer. When you travel, you'll earn four times the points on bookings made through Brex's portal. Restaurant expenses earn three times the points, making client meetings and team dinners more rewarding. Your rideshare services generate seven times the points, while software subscriptions earn two times the points — essential for modern businesses heavily invested in digital tools. Even your everyday purchases earn base points, ensuring every business expense contributes to your rewards balance.

Integrated spend management

Brex goes beyond basic expense tracking by providing a comprehensive financial spend management ecosystem. Its built-in expense management software automatically matches receipts to transactions, saving countless hours of manual expense reconciliation. The platform seamlessly integrates with popular accounting software, ensuring your financial data flows smoothly across systems. Real-time expense tracking gives you instant visibility into your spending patterns, while virtual cards add an extra layer of security and control over employee spending.

Top-notch customer service

While traditional banks keep you waiting on hold and bounce you between departments, Brex believes your time is too valuable. Instead of navigating automated phone trees or submitting support tickets into the void, Brex customers enjoy 24/7 access to responsive, knowledgeable support through live chat or direct phone calls. When financial questions or issues arise, having immediate access to real, helpful humans isn't just a convenience — it's essential for businesses that can't afford to wait.

While secured business credit cards can provide a starting point for building credit, each option comes with specific tradeoffs — from personal guarantees and credit checks to varying deposit requirements and credit limits. For businesses ready to move beyond these limitations and unlock their true growth potential, it's worth exploring more flexible alternatives that don't require tying up valuable capital in security deposits.

As we've examined the landscape of secured business credit cards, it's clear they serve a specific purpose in helping companies establish credit. Yet their fundamental limitations — from capital-intensive security deposits and restricted spending power to high fees and minimal rewards — can create significant hurdles for businesses focused on growth. For many companies, these constraints may do more harm than good, particularly when better alternatives exist in today's dynamic financial market.

As an EIN only credit card, Brex stands out as a powerful solution that fundamentally reimagines what a corporate credit card can offer growing businesses. Rather than asking you to lock away precious capital in security deposits, Brex evaluates your business based on its true potential, offering higher credit limits, generous rewards, and robust features that align with modern business needs. Its comprehensive platform also provides intelligent expense management, bill pay, business banking, corporate travel and expense management, reimbursements, seamless integrations, and accounting automation.

Sagar Patel, Director of Finance at Innocaption, said: “We first saw Brex as a great corporate card program and banking alternative for startups. Now, we couldnʼt imagine life without Brexʼs total spend management and corporate travel solution.”

Tiffany Miller, Director of Accounts Payable for Empire Portfolio Group, echoed that sentiment: “The beauty of Brex is that we could get a corporate card and employee reimbursements on the same platform. You can build a program that works for you.”

When considering your business's future, the choice becomes clear: continue with the limitations of secured cards or embrace a financial platform designed to fuel your growth. With Brex, you gain immediate access to higher credit limits, sophisticated expense tracking, 24/7 support from real humans, and rewards that actually matter for your business.

It's time to stop letting secured cards hold your business back — sign up for Brex today and join the thousands of forward-thinking companies that have already discovered how Brex's innovative approach can transform their financial operations.