Senior writer | Small business banking and credit cards, Paycheck Protection Program, consumer spending, and household finances
Kelsey Sheehy is a NerdWallet authority on small business. Her work has appeared in The New York Times, The Washington Post, Nasdaq and MarketWatch, among other publications. Kelsey has appeared on the <a href="https://www.today.com/video/christmas-in-july-sales-to-take-advantage-of-now-64075333536">"Today"</a> show, <a href="https://www.nbcnews.com/nightly-news/video/tax-code-changes-leave-many-americans-with-unhappy-returns-1440385091860">NBC News</a> and <a href="https://abcnews.go.com/WNT/video/cost-smartphones-reaching-time-high-54166111">"ABC World News Tonight"</a> and has been quoted by the Los Angeles Times, CNBC and American Banker, among other publications. Email: <a href="mailto:ksheehy@nerdwallet.com">ksheehy@nerdwallet.com</a>.
Senior writer | Small business banking and credit cards, Paycheck Protection Program, consumer spending, and household finances
Kelsey Sheehy is a NerdWallet authority on small business. Her work has appeared in The New York Times, The Washington Post, Nasdaq and MarketWatch, among other publications. Kelsey has appeared on the <a href="https://www.today.com/video/christmas-in-july-sales-to-take-advantage-of-now-64075333536">"Today"</a> show, <a href="https://www.nbcnews.com/nightly-news/video/tax-code-changes-leave-many-americans-with-unhappy-returns-1440385091860">NBC News</a> and <a href="https://abcnews.go.com/WNT/video/cost-smartphones-reaching-time-high-54166111">"ABC World News Tonight"</a> and has been quoted by the Los Angeles Times, CNBC and American Banker, among other publications. Email: <a href="mailto:ksheehy@nerdwallet.com">ksheehy@nerdwallet.com</a>.
Ryan Lane is an editor on the small-business team and a NerdWallet authority on student loans. He spent more than a decade as a writer and editor for student loan guarantor American Student Assistance and was a managing editor for publisher Cell Press. Ryan’s work has been featured by The Associated Press, USA Today and MarketWatch, and he previously co-authored the U.S. News & World Report Student Loan Ranger blog. Email: <a href="mailto:rlane@nerdwallet.com”">rlane@nerdwallet.com</a>.
Ryan Lane is an editor on the small-business team and a NerdWallet authority on student loans. He spent more than a decade as a writer and editor for student loan guarantor American Student Assistance and was a managing editor for publisher Cell Press. Ryan’s work has been featured by The Associated Press, USA Today and MarketWatch, and he previously co-authored the U.S. News & World Report Student Loan Ranger blog. Email: <a href="mailto:rlane@nerdwallet.com”">rlane@nerdwallet.com</a>.
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Content was accurate at the time of publication.
Why trust NerdWallet
250+ small-business products reviewed and rated by our team of experts.
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Objective comprehensive business credit card ratings rubric (Methodology).
NerdWallet's business credit card content, including our ratings, reviews and recommendations, is overseen by a team of writers and editors who specialize in business credit cards. Their work has appeared in The Associated Press, Washington Post, MarketWatch, Nasdaq, Entrepreneur, ABC News, MSN and other national and local media outlets. Each writer and editor follows NerdWallet's strict editorial guidelines to ensure fairness and accuracy in our coverage. We independently evaluate and rate dozens of small-business credit cards, scoring them on fees, rewards rates, bonus offers and other features to help you choose the best business card for your company.
Advertiser disclosure
You’re our first priority.
Every time.
We believe everyone should be able to make financial decisions with
confidence. And while our site doesn’t feature every company or
financial product available on the market, we’re proud that the guidance
we offer, the information we provide and the tools we create are
objective, independent, straightforward — and free.
So how do we make money? Our partners compensate us. This may influence
which products we review and write about (and where those products
appear on the site), but it in no way affects our recommendations or
advice, which are grounded in thousands of hours of research. Our
partners cannot pay us to guarantee favorable reviews of their products
or services. Here is a list of our partners .
Senior writer | Small business banking and credit cards, Paycheck Protection Program, consumer spending, and household finances
Kelsey Sheehy is a NerdWallet authority on small business. Her work has appeared in The New York Times, The Washington Post, Nasdaq and MarketWatch, among other publications. Kelsey has appeared on the <a href="https://www.today.com/video/christmas-in-july-sales-to-take-advantage-of-now-64075333536">"Today"</a> show, <a href="https://www.nbcnews.com/nightly-news/video/tax-code-changes-leave-many-americans-with-unhappy-returns-1440385091860">NBC News</a> and <a href="https://abcnews.go.com/WNT/video/cost-smartphones-reaching-time-high-54166111">"ABC World News Tonight"</a> and has been quoted by the Los Angeles Times, CNBC and American Banker, among other publications. Email: <a href="mailto:ksheehy@nerdwallet.com">ksheehy@nerdwallet.com</a>.
Senior writer | Small business banking and credit cards, Paycheck Protection Program, consumer spending, and household finances
Kelsey Sheehy is a NerdWallet authority on small business. Her work has appeared in The New York Times, The Washington Post, Nasdaq and MarketWatch, among other publications. Kelsey has appeared on the <a href="https://www.today.com/video/christmas-in-july-sales-to-take-advantage-of-now-64075333536">"Today"</a> show, <a href="https://www.nbcnews.com/nightly-news/video/tax-code-changes-leave-many-americans-with-unhappy-returns-1440385091860">NBC News</a> and <a href="https://abcnews.go.com/WNT/video/cost-smartphones-reaching-time-high-54166111">"ABC World News Tonight"</a> and has been quoted by the Los Angeles Times, CNBC and American Banker, among other publications. Email: <a href="mailto:ksheehy@nerdwallet.com">ksheehy@nerdwallet.com</a>.
Ryan Lane is an editor on the small-business team and a NerdWallet authority on student loans. He spent more than a decade as a writer and editor for student loan guarantor American Student Assistance and was a managing editor for publisher Cell Press. Ryan’s work has been featured by The Associated Press, USA Today and MarketWatch, and he previously co-authored the U.S. News & World Report Student Loan Ranger blog. Email: <a href="mailto:rlane@nerdwallet.com”">rlane@nerdwallet.com</a>.
Ryan Lane is an editor on the small-business team and a NerdWallet authority on student loans. He spent more than a decade as a writer and editor for student loan guarantor American Student Assistance and was a managing editor for publisher Cell Press. Ryan’s work has been featured by The Associated Press, USA Today and MarketWatch, and he previously co-authored the U.S. News & World Report Student Loan Ranger blog. Email: <a href="mailto:rlane@nerdwallet.com”">rlane@nerdwallet.com</a>.
NerdWallet's content is
fact-checked for accuracy, timeliness, and relevance by humans.
It undergoes a thorough review process involving writers and editors to ensure
the information is as clear and complete as possible. Learn more by checking
our
Editorial Guidelines.
Content was accurate at the time of publication.
Why trust NerdWallet
250+ small-business products reviewed and rated by our team of experts.
80+ years of combined experience covering small business and personal finance.
Objective comprehensive business credit card ratings rubric (Methodology).
NerdWallet's business credit card content, including our ratings, reviews and recommendations, is overseen by a team of writers and editors who specialize in business credit cards. Their work has appeared in The Associated Press, Washington Post, MarketWatch, Nasdaq, Entrepreneur, ABC News, MSN and other national and local media outlets. Each writer and editor follows NerdWallet's strict editorial guidelines to ensure fairness and accuracy in our coverage. We independently evaluate and rate dozens of small-business credit cards, scoring them on fees, rewards rates, bonus offers and other features to help you choose the best business card for your company.
Advertiser disclosure
You’re our first priority.
Every time.
We believe everyone should be able to make financial decisions with
confidence. And while our site doesn’t feature every company or
financial product available on the market, we’re proud that the guidance
we offer, the information we provide and the tools we create are
objective, independent, straightforward — and free.
So how do we make money? Our partners compensate us. This may influence
which products we review and write about (and where those products
appear on the site), but it in no way affects our recommendations or
advice, which are grounded in thousands of hours of research. Our
partners cannot pay us to guarantee favorable reviews of their products
or services. Here is a list of our partners .
Bank of America® Business Advantage Unlimited Cash Rewards Mastercard® Secured credit card
Overview
The bottom line:
Bank of America’s secured business credit card can be a lifeline for entrepreneurs with bad personal credit who want to build their business’s credit profile.
Credit card details
Annual fee
$0
Regular APR
27.49% Variable APR
Intro APR
None
Rewards rate
1.5%
Earn 1.5% cash back on every purchase, every time. No annual cap and rewards don't expire as long as your account remains open.
Foreign transaction fee
3% of the U.S. dollar amount of each transaction made in a foreign currency.
Intro offer
N/A
Pros & Cons
Pros
Qualify with limited/bad personal credit
Earns rewards
No annual fee
Builds business credit history
Cons
Requires minimum deposit
Does not help personal credit
High APR
More details from Bank of America
Help strengthen your business credit while earning unlimited cash back: Earn 1.5% cash back on every purchase, every time. No annual cap and rewards don't expire as long as your account remains open.
Open your account with a security deposit (minimum $1,000). Upon approval your credit line will be equal to your deposit account.
Bank of America will periodically review your account and if your overall credit history improves, you could transition to an unsecured card. Not all customers will qualify.
Choose how to redeem your cash rewards — as a deposit into your Bank of America® checking or savings account, as a card statement credit or as a check mailed to you.
In a secured business card landscape slim on options, the Bank of America® Business Advantage Unlimited Cash Rewards Mastercard® Secured credit card easily rises to the top.
Not only is it widely available, but it has no annual fee and earns cash-back rewards — a combo of features you just won’t find elsewhere. Plus, Bank of America will automatically consider you for an upgrade to an unsecured business card if your overall credit history improves.
That makes it an excellent choice for business owners who want to build business credit history but can’t qualify for a business credit card.
This card is best for:
✔️ Bad personal credit.
✔️ Earning cash-back rewards.
✔️ Building business credit.
Not a fit? Consider these other cards
Capital on Tap Business Credit Card
Consider Capital on Tap if you have a registered business (sole proprietors are not eligible) and a personal credit score of at least 670. Capital on Tap doesn’t require a security deposit and earns 1.5% cash back on all purchases — 2% if you opt for automatic weekly payments. Plus, applying won’t affect your personal credit.
Discover it® Secured Credit Card
The Discover it® Secured Credit Card is a personal credit card. But that makes it a great option if your aim is to build your personal credit. Unlike the Bank of America® Business Advantage Unlimited Cash Rewards Mastercard® Secured credit card, which only reports to business credit bureaus, the Discover it® Secured Credit Card reports to the three major consumer credit bureaus.
💷 Foreign transaction fee: 3% of the U.S. dollar amount of each transaction made in a foreign currency.
🎆 Other benefits:
Automatically considered for upgrade to an unsecured card (subject to credit history).
Free access to Dun & Bradstreet business credit scores.
Benefits and perks
Earns rewards
Most secured cards are bare bones with no rewards. But Bank of America’s secured business card earns 1.5% cash back — a respectable rate that matches some of the best cash-back business cards. The rewards you earn can be redeemed as a statement credit, via check or deposited into a Bank of America checking or savings account.
Upgrade potential
If your overall credit profile improves, Bank of America may refund your security deposit and/or upgrade you to an unsecured Bank of America business credit card. While applying for an unsecured business card is always an option as your credit improves, Bank of America takes the work out of it for you, automatically reviewing secured accounts for upgrade.
The universe of secured business credit cards is tiny. Only a handful of cards exist for business owners with bad credit (typically considered a FICO score below 630). Most of those are offered by smaller banks and only available to business owners in a select service area.
The Bank of America® Business Advantage Unlimited Cash Rewards Mastercard® Secured credit card is the exception. It is available to business owners nationwide, and you can apply for the card online.
🤓
Nerdy Tip
Most secured business cards still require a personal credit check, which will result in a small, temporary hit to your personal credit score. Approval for secured cards is rarely based on your credit score, though.
Drawbacks and alternatives
Security deposit needed
All secured cards require a security deposit. While the $1,000 minimum deposit required by Bank of America falls in the mid-range for secured business cards — deposits typically range from $500 to $2,000 — it may still be a hurdle for some businesses. And your security deposit does not earn interest.
If you have fair-to-bad credit (a FICO score below 690) and want to avoid a security deposit, there are a few options:
Capital on Tap : This doesn’t require a security deposit but is only available to registered businesses (corporations, LLCs, partnerships, etc.). You need a personal FICO score of at least 670 to qualify.
Capital One® Spark® Classic for Business : This card earns 1% cash back and does not require a security deposit. Business owners with fair credit (FICO scores from 630 to 689) may qualify.
Doesn’t help personal credit
If you have a low personal credit score, the Bank of America® Business Advantage Unlimited Cash Rewards Mastercard® Secured credit card won’t help change that. No secured business card will. That’s because they report to commercial credit bureaus, not consumer bureaus.
How we evaluated the Bank of America® Business Advantage Unlimited Cash Rewards Mastercard® Secured credit card
NerdWallet's business credit card experts compared the Bank of America® Business Advantage Unlimited Cash Rewards Mastercard® Secured credit card to other cash-back and secured business cards, evaluating how the card's rewards, fees and features stack up to its peers. For secured business cards, we also consider deposit requirements, upgrade potential and whether your security deposit earns interest.
Notes from card issuers
Information for the Capital One® Spark® Classic for Business was collected by NerdWallet and not reviewed by or provided by Capital One.