A businessman and a credit card are perfect for each other because the latter allows the former to pay his monthly dues without having to shell out a lot of cash. On top of that, rewards can also be gained like travel miles. However, what if your business has not built enough credit yet or what if it’s damaged because of a failed enterprise?
You should then get small business secured credit cards for bad credit if the scenario stated above is true. These cards have a lot of similarities with secured credit cards for individuals in terms of the re-establishment of credit.
Wells Fargo is one of the banks that offer this type of card. They call it a Wells Fargo Business Secured Credit Card and they would allow you to get a maximum of $50,000 given that you have a deposit with them for that amount or higher. It has a great interest rate on purchases at 9.9% compared to 24.99% in other credit cards. They pay interest of 2.5% on security deposits but this is only good for the first year and it will become 0.5% on its second year, going onwards.
There are only a few offers for small business secured credit cards. This is probably because most banks know that many applicants does not have enough cash with them to be able to make that amount of deposit. Moreover, banks might feel very uncomfortable in lending money to a business that hasn’t established credit or damaged its credit because there is a big probability that it might fail. They feel more confident giving established businesses credit because they know they can profit more from the latter.
You may want to check if there are offers for a bad credit unsecured credit card if you don’t have enough money to deposit but if you do, Wells Fargo offers a great package.