Methodology
To identify the best secured credit cards for business, WalletHub’s editors compare all of the secured cards in our database of more than 1,500 credit card offers. We consider secured cards branded for business use as well as those intended for consumers, given that using a general-consumer card will not increase a small business owner’s personal liability. In addition, considering secured credit cards for businesses and consumers alike dramatically increases a small business owner’s card selection. This ultimately helps applicants find the best card for their needs and maximize their savings as they improve their credit standing.
In particular, the best secured credit cards for business use have low annual fees, good rewards and monthly credit-bureau reporting. We prioritize such features when comparing offers and select the best options for different types of applicants based on two-year cost.
WalletHub’s Key Rating Components
Two-Year Cost: 29% – We evaluate the overall cost of using each secured business credit card over a two-year period by comparing fees with any rewards the business owner can realistically earn. Cards that deliver solid rewards value while keeping fixed costs manageable receive higher scores. Interest rates are not given much emphasis because the focus is on credit building, and we recommend that cardholders pay in full monthly.
Credit Checks and Reporting: 24% – We prioritize cards from issuers that report account activity to major credit bureaus, helping business owners build or strengthen their credit profile through responsible use. We also give added consideration to cards that offer no credit check or minimal underwriting requirements, making them more accessible to new or credit-building businesses.
Fees: 15% – We review all potential costs, including annual fees, monthly fees, processing fees, and other charges that may impact affordability for small business owners.
Security Deposit and Credit Limit: 12% – We assess deposit requirements, how credit limits are determined, and whether the card offers a path to higher limits or graduation to an unsecured business card over time.
Editor’s Rating: 10% – Our editorial team evaluates each card’s strengths and weaknesses and compares the offer to similar secured business card options.
Rewards: 5% – We consider the value and practicality of any rewards program, including earning rates and redemption flexibility for common business expenses.
User Reviews: 5% – We incorporate feedback from business owners to better understand each card’s real-world value.
How Two-Year Cost Is Calculated
Two-year cost is used to approximate the monetary value of cards for better comparison and is calculated by combining annual and monthly membership fees over two years, adding any one-time fees or other fees (like balance transfer fees), adding any interest costs, and subtracting rewards. Negative amounts indicate savings. When fees or other terms are presented as a range, we use the midpoint for scoring purposes.
Rewards bonuses and credits have been taken into account for two-year cost calculations. However, bonuses applicable to only a very small portion of cardholders are not considered. For example, credits and bonuses awarded for spending or redeeming rewards through a company portal with non-co-branded cards have not been taken into account. Similarly, bonuses and credits related to spending with specific merchants using a non-co-branded card have not been taken into account (for example, if Card A offers credits with DoorDash, this feature would not be factored into calculations because it is hard to assess how many cardholders would use the benefit or exactly how much value they'd get from it).
Cardholder Spending Profiles
Given that different users have different goals and are likely to use their credit cards differently, we identified spending profiles that are representative of different users’ financial priorities and behaviors. For each cardholder type, we have assumed a specific amount of monthly spending by purchase type (e.g., groceries, gas, etc.), as well as an average balance, balance transfer amount, amount spent on large purchases and average monthly payment. Spending assumptions are based on Bureau of Labor Statistics data.
Sources
WalletHub’s picks for the best secured credit cards for business are based on our proprietary database of 1,500+ credit card offers, which is kept up to date as offers change. This database makes card comparison and market-wide analysis very easy. We also supplement this information with thousands of user ratings and our own experiences, which provide valuable insights into what it’s actually like to use each card.
