Wells Fargo Business Secured Credit Card Review

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Wells Fargo Business Secured Credit Card Review


The Wells Fargo Business Secured Credit Card will be discontinued in August 2022.

Full Review of Wells Fargo Business Secured Credit Card


  • Flexible rewards structure

  • No foreign transaction fee


  • Annual fee applies to every card issued

  • Minimal benefits

  • Your credit must be secured

Pros Explained

  • Flexible Rewards Structure: With the Wells Fargo Business Secured card, you may choose the ideal rewards structure for you. You may get 1.5% cash back on every purchase or one point for every dollar spent, with each point worth up to a penny depending on how you redeem them. If you choose rewards points, you will get 1,000 additional points if you spend $1,000 or more in any billing month.
  • No Foreign Transaction Fees: This feature, which is handy if you go abroad for work or conduct business with foreign vendors, is not available on all secured cards. Whereas it is typical for all credit-card transactions in foreign currencies to be imposed a fee of up to 3%, the Wells Fargo Business Secured card does not.

Cons Explained

  • While it’s not uncommon for a secured business card to have minimal perks, the Wells Fargo Business Secured has less than other rivals.
  • If you’re unfamiliar with how this sort of card works, the Wells Fargo Business Secured, like other secured cards, requires you to place a security deposit on your account that serves as your credit limit. That, of course, limits how often you can use the card, particularly at initially (if you use the card responsibly, the limit may later be raised to exceed the deposit.)You may deposit between $500 and $25,000.

The Wells Fargo Company Secured card is intended only for business owners with little or no credit history or who are repairing damaged business credit. Wells Fargo will report payment activity and card use to the Small Business Financial Exchange, assisting in the establishment or improvement of your company’s credit score.

Using the card properly over time should help you to qualify for unsecured business credit cards later on. Indeed, Wells Fargo claims to check unsecured card accounts on a regular basis to determine eligibility for an upgrade to an unsecured business card.

This card is also an excellent alternative if you want a basic card that rewards you for your regular company spending. Every purchase will earn you a fixed rewards rate. You may accumulate points over time and use them for cash back, products, flights, and other items.

Rewards Earning Details

The Wells Fargo Business Secured card gives you the option of earning cash back or rewards points. With the first choice, you’ll get 1.5% cash back on every transaction. If you choose to use rewards points, you will get one point for every dollar spent. In addition, if you spend at least $1,000 in any monthly billing period, you will get 1,000 additional points.

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Rewards Redemption Details

If you choose the cash back structure, you may redeem your cash back for statement credits or deposits to a Wells-Fargo bank or savings account. However, you must wait longer than with other rival cards to earn those incentives.

If you chose to utilize your rewards points, you may redeem them for a variety of items, including gift cards. You may use your points to purchase flights.

When you redeem points online, you will get a 10% credit. For example, if you had 20,000 points and redeemed them online, you’d have 22,000 points available to you. Because of the 10% incentive, choosing rewards points may provide greater value than choosing cash back rewards.

How to Maximize Your Rewards

To get the most out of your Wells Fargo Business Secured card, use it anytime you make a purchase for your business. You’ll get 1.5% cash back or one point for every dollar spent.

If you normally spend $1,000 or less on business expenditures each month, it makes sense to choose rewards points over cash back and charge expenses up to that level to this card, since this will enable you to earn an effective rate of return more than 1.5%. A monthly charge of $1,000 or more to the card rewards you to a 1,000-point bonus. It’s also advisable to redeem your points online, since doing so earns you 10% more points.

Consider the following scenario to see how those numbers play out. Assume you spend $12,000 per year on your company, or $1,000 every month. If you choose cash back incentives, you would get $180 in cash back.

If you paid the same amount but got rewards points instead, you’d receive 12,000 points, which is worth up to $120. You’d also earn 1,000 extra points for every $1,000 spent in a month, for a total of 12,000 points. You now have a total of 24,000 points. Redeem those points online for a 10% point credit, and you’ll have a total of 26,400 points—worth up to $264.

If you choose rewards points over cash back, you might get up to $84 in extra value. However, if you spend more than $1,000 each month, the 1.5% cash back choice is likely to be the superior rewards option.

Standard Benefits

  • Zero-liability protection
  • Business spending reporting

Cardholder Experience

In the J.D. Power Small-Business Credit Card Customer Satisfaction Study, Wells Fargo scores towards the bottom of the group. Wells Fargo received 791 out of 1,000 points in its 2021 assessment for its business services, falling below of the national average.

Monday through Saturday from 7 a.m. to 11 p.m., Eastern Time, and Sunday from 9 a.m. to 10 p.m., Eastern Time. You may reach customer service through their online portal or by dialing 1-800-225-5935.

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Security Features

The Wells Fargo Business Secured card has certain common security measures for business cards. Account notifications and fraud detection are included.

Our Verdict

If you are a small business owner trying to develop credit for your company, the Wells Fargo Business Secured card is a good option. Its rewards program enables you to earn cash back or points, and using the card properly, such as remaining under your credit limit and making on-time payments, may help you qualify for an unsecured card in the future.

Although the Wells Fargo Business Secured card has an annual cost and no perks, it does not incur a foreign transaction fee, which is useful when traveling overseas for business or buying from international suppliers in their native currency.

Investopedia Credit Card Rating Methodology

Investopedia is dedicated to providing the most accurate credit card advice in the business. We’ll tell you when a card is excellent, when it’s awful, and we’ll only declare a card the greatest if we’d suggest it to our friends or family.

Overall Star Rating Explained

To rank credit cards, we objectively examine, score, and weight roughly 100 unique card characteristics, which are then categorized into five key feature sets: fees, interest, rewards, perks, and security/customer service. Here’s how we weighted those feature sets to get a card’s total star rating:

We have applied our patented grading approach to every widely recognized credit card in the domestic market of the United States, allowing users to make fully informed decisions. It’s crucial to understand that we make a lot of assumptions regarding how you’ll use your credit card when calculating our overall score:

  1. While we make no assumptions about whether or not balances are held on a certain card, we do apply differing weights to all credit cards’ promotional APR (if applicable), as well as the normal, long-term purchase and balance transfer interest rates.
  2. We use BLS (U.S. Bureau of Labor Statistics) income and average category spending data to calculate annual earnings rates for rewards cards that offer cash back, points, or miles rewards at a fixed rate on all spending or with bonus rewards for specific spending categories such as gasoline, groceries, restaurants, or travel.
  3. The maximum points value of a rewards card is calculated by dividing the number of points, cash back, or miles required to exchange for the retail price of the most valuable redemption option (for example, in the case of a card that offers a domestic roundtrip airline ticket as a redemption option vs. another redemption option of lesser value that requires the same amount of points or miles to acquire, we would base the rewards value on the airline ticket).
  • Cards that are chosen as the greatest overall in their respective categories often include the majority, if not all, of the following characteristics:
  • Fees that are low or reasonable Credit card fees may take numerous forms, but the most common are those for annual card membership and debt transfers. There are several reward and non-reward card alternatives with no annual fee, but the cost of the ones that do charge an annual fee is generally justified by their attractive recurring benefits and initial signup incentives. Balance transfer costs are often removed during introductory periods with certain cards, which is a feature that is highly and favorably weighted in our scoring model for cards that provide this advantage. Balance transfer costs, if paid, vary between 3% and 5%, and we evaluate them appropriately. Other regular costs, such as those for late payments or cash advances, may often be avoided, but we assess them compared to other cards in the market for reference, but with less weight allocated.
  • Competitive Motivation Many credit cards provide 0% introductory APR on purchases and debt transfers for varied periods of time before reverting to a permanent or normal APR (based on a variable rate related to the prime rate) that applies to any balances that are not paid in full. The introductory APR % and term (in months) are both rated, as is the midpoint of the variable regular APR interest rate range.
  • Excellent Benefits Credit card reward schemes might provide cash back, points, or travel benefits (which can be generic or travel partner-specific, as with airline and hotel co-brand card programs).For cards that give rewards, we calculate the value per dollar spent as well as typical redemption values and award higher ratings to cards that provide greater customer value. We also appreciate sign-up bonuses and their first spending criteria when they are available.
  • Excellent Advantages Concierge service, TSA Pre-check, vehicle rental coverage, travel accident insurance, lost baggage help, and free credit scores are all examples of credit card advantages. We grade cards based on the amount and quality of over a dozen standard and upscale advantages, with additional weighting given to travel-related perks that apply to premium travel cards where they are present.
  • Excellent security/customer service Security and customer service features like as lost or stolen card replacement, the ability to freeze one’s card through an issuer app, and 24 hour customer assistance are becoming increasingly common in the card industry, and we put a high value on them.
  • You can also read our comprehensive methodology for a more in-depth look at how we evaluate cards and reward the best in different categories.
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