
- How do secured business credit cards work?
- Benefits of a secured business credit card
- Limitations of a secured business credit card
- Can you use a secured business credit card for personal use?
- How to get a secured business credit card
- Best secured business credit cards
- How to access business credit without freezing your capital
- Building your business credit with the Ramp Business Credit Card

A secured business credit card is a type of card that requires a cash deposit as collateral, which serves as the card’s credit limit. This type of card is often used by businesses that are new, have limited credit history, or are working to improve their credit.
In this article, we'll cover how secured business credit cards work, their benefits, and how to get a secured card for your business.
How do secured business credit cards work?
Secured business credit cards function by requiring the cardholder to make an initial cash deposit, which directly determines the card's credit limit. For example, a $1,000 deposit would typically allow for a $1,000 line of credit. Unlike prepaid cards, secured credit cards provide actual credit, allowing businesses to make purchases up to the credit limit and pay the balance down monthly, similar to traditional credit cards.
When a business uses a secured credit card responsibly, by making timely payments and keeping balances low, it reflects positively on your business’s credit report. Over time, this responsible usage can help improve your business credit score, making it easier to qualify for larger, unsecured lines of credit.
Many credit card issuers also offer the opportunity to upgrade to an unsecured card after a period of demonstrated financial responsibility, which can further enhance the business’s credit options and financial flexibility.
Benefits of a secured business credit card
A secured business credit card has a number of benefits:
- Using a secured loan or credit card can rebuild your business credit score.
- Startups and small businesses may not have a sufficient credit history, so using secured credit cards can help establish a credit history.
- Employees may be added to the account to make purchases for the business.
- Similar to regular business credit cards, secured cards may have rewards.
Limitations of a secured business credit card
While secured business credit cards can help build credit, they also come with important limitations to consider:
- The upfront security deposit (typically $500-$5,000+) freezes your working capital when your business might need it for growth opportunities.
- Your credit limit is typically capped at your security deposit amount, limiting your purchasing power for larger business expenses.
- Despite requiring collateral, these cards often charge higher interest rates (frequently over 20% APR) and additional fees (annual, maintenance, employee card fees).
- Rewards programs, if available, offer minimal returns compared to unsecured cards, with few sign-up bonuses and limited business management tools.
Can you use a secured business credit card for personal use?
While it's not illegal to use a secured business credit card for personal expenses, it will likely violate the terms and conditions of your card agreement. This can come with some serious consequences, like penalties, the loss of certain benefits like reward points earned on business expenses, or cancellation of the card.
Moreover, in the case of an LLC or a corporation, using a business credit card for personal expenses can undermine the legal separation between the business and the individual. This separation is crucial for maintaining limited liability status, and breaching it could expose personal assets to business liabilities.
How to get a secured business credit card
Here are the typical steps to apply for a business credit card:
Research potential card issuers
Begin by identifying credit card issuers that offer secured business credit cards so that you can compare their terms. Look for cards with no annual fees or foreign transaction fees, good rewards programs, and relatively low APR or 0% introductory APR.
Check credit reporting practices
Confirm that the issuer reports to business credit bureaus such as Experian Business, Equifax Small Business, and Dun & Bradstreet. Regular reporting is crucial as it makes sure that your business’s credit activities are accurately reflected in its credit reports, helping you build a strong credit profile.
Gather required documentation
Prepare necessary documents that may include business financial statements, tax identification numbers, business licenses, and personal identification. Having these documents ready can streamline the application process.
Complete the application
Apply for the card either online or in person, depending on the issuer’s process. Provide accurate information about your business and personal finances as required. This step typically involves detailing your business's financial health and demonstrating the stability and legality of your operation.
Submit your security deposit
Once approved, you'll need to pay a security deposit. This deposit sets your credit limit and is held by the credit card issuer as collateral against your spending. Make sure the deposit amount is within your budget while still providing enough credit to be useful for business expenses.
Activate and manage your card
After your account is set up and your card is received, activate it following the issuer’s instructions. Start using your card for business-related expenses. It's crucial to manage the card responsibly by making on-time payments and keeping balances low relative to your credit limit. This will help you to improve your credit score and qualify for an unsecured credit card in the future.
Best secured business credit cards
When weighing secured business credit card choices, you should consider:
- Bank of America Business Advantage Unlimited Cash Rewards Mastercard Secured
- Capital One Quicksilver Secured Cash Rewards Credit Card
- Truist Enjoy Cash Secured Credit Card
- Valley Visa Secured Business Credit Card
- First National Bank of Omaha Business Edition Secured Mastercard
All require a deposit to establish a credit line, but they differ in rewards programs (cashback percentages and categories), fees (annual fees and other charges), and specific features like introductory APRs or upgrade options.Here are some more details about each of the best secured business credit cards.
1. Bank of America Business Advantage Unlimited Cash Rewards Mastercard Secured
The Bank of America Business Advantage Unlimited Cash Rewards Mastercard Secured card offers a $1,000 minimum security deposit and unlimited 1.5% cashback on all purchases. Cardholders can qualify for an upgrade to an unsecured business credit card and enjoy no annual fees. The card also provides access to cash flow management tools, travel and emergency services, and Balance Connect for overdraft protection.
- Annual Fee: $0
- APR: 27.49% variable APR
- Minimum Deposit: $1,000
Key Benefits:
- Unlimited 1.5% cashback on all purchases
- No annual fee
- Possibility to upgrade to an unsecured card
Drawbacks:
- High minimum security deposit
- 4% balance transfer fee
- No introductory APR
Best For: Business owners who want cashback rewards without annual fees and can afford the higher minimum deposit.
2. Capital One Quicksilver Secured Cash Rewards Credit Card
The Capital One Quicksilver Secured Cash Rewards Credit Card offers unlimited 1.5% cashback on all purchases with a minimum security deposit of $200. Potential cardholders can check for pre-approval without impacting their credit score. The card features automatic credit line reviews every six months, no hidden fees, and the ability to raise the credit limit with additional deposits. Cardholders can also upgrade to an unsecured Quicksilver card by building a positive payment history.
- Annual Fee: $0
- APR: 29.74% variable
- Minimum Deposit: $200
Key Benefits:
- Unlimited 1.5% cashback on all purchases
- Low minimum security deposit
- Automatic credit line reviews every six months
- No hidden fees
- Option to increase credit limit with additional deposits
Drawbacks:
- High variable APR
- No bonus categories for rewards
- Not specifically designed for business use
Best For: Solo entrepreneurs with lower spending needs who want a low entry point and automatic credit line reviews.
3. Truist Enjoy Cash Secured Credit Card
The Truist Enjoy Cash Secured Credit Card offers a tiered cashback rewards system, earning 3% on gas and EV charging purchases, 2% on utilities and groceries, and 1% on all other purchases. The card carries a $19 annual fee and provides Zero Liability protection. Cardholders can also benefit from a Loyalty Cash Bonus. The variable APR for purchases and balance transfer fees is 24.49%.
- Annual Fee: $0
- APR: 24.49% variable
- Minimum Deposit: Varies
Key Benefits:
- High cashback for some categories: 3% on gas and EV charging, 2% on utilities and groceries
- Unlimited 1% cashback for everything else
- Loyalty Cash Bonus increases total rewards
Drawbacks:
- $19 annual fee
- Combined $1,000 monthly cap for 2% cashback categories
- 3% balance transfer fee
Best For: Businesses with significant spending on gas, utilities, and groceries who can benefit from the tiered rewards structure.
4. First National Bank of Omaha Business Edition Secured Mastercard
The First National Bank of Omaha Business Edition Secured Mastercard allows cardholders to request their own credit limit with a security deposit between $2,000 and $10,000. The card has a $39 annual fee and a variable 25.99% APR on purchases and balance transfers. Benefits include auto rental insurance, cash flow management tools, and mobile receipt management.
- Annual Fee: $39
- APR: 25.99% (variable)
- Minimum Deposit: $2,000 (up to $10,000)
Key Benefits:
- High potential credit limit (up to $10,000)
- Interest accrues on your security deposit
- Auto rental insurance
Drawbacks:
- Requires a 110% security deposit of your requested credit limit
- $39 annual fee
- No introductory APR
Best For: Established businesses seeking higher credit limits who don't mind paying an annual fee for business-specific features.
5. Valley Visa Secured Business Credit Card
The Valley Visa Secured Business Credit Card offers a 0% introductory APR on purchases and balance transfers for the first six months, along with unlimited 1% cashback rewards. There is no annual fee, and the maximum security deposit is $25,000. A security deposit equal to 110% of the desired credit limit is required. The card also features a 2% foreign transaction fee and a $0.50 activity fee in any billing cycle with a cash advance or balance transfer.
- Annual Fee: $0
- APR: 0% Introductory APR for the first six months
- Minimum Deposit: 110% of desired credit limit (up to $25,000)
Key Benefits:
- 0% introductory APR on purchases and balance transfers for six months
- Unlimited 1% cashback rewards
- No annual fee
- High maximum security deposit/credit limit
Drawbacks:
- 4% balance transfer fee
- 2% foreign transaction fee
- $0.50 activity fee in billing cycles with cash advances or balance transfers
Best For: Businesses planning large purchases who can benefit from the introductory 0% APR period.
6. Platinum Secured Mastercard
The Platinum Secured Mastercard offers flexible security deposit options of $49, $99, or $200 with no annual fee. Cardholders benefit from automatic credit line reviews, no hidden fees, and a refundable deposit with upgrade opportunities. The card also includes zero fraud liability and allows potential cardholders to check for pre-approval without impacting their credit score.
- Annual Fee: $0
- APR: 29.99% (variable)
- Minimum Deposit: Flexible options
Key Benefits:
- Low security deposit requirement
- Automatic credit line reviews
- Opportunity to upgrade to unsecured card
- No annual fees
Drawbacks:
- Maximum credit limit of only $1,000
- High variable APR
- 4% balance transfer fee
Best For: Small businesses or sole proprietors who need a low entry point and are focused primarily on building credit.
How to access business credit without freezing your capital
While secured business credit cards can help establish credit, they present significant trade-offs that may not align with your growth goals. Each option requires locking up valuable capital as collateral, imposes high interest rates, and offers limited rewards, creating barriers rather than accelerating your business's potential.
For businesses focused on smart financial management and growth, Ramp offers a compelling alternative that eliminates these compromises. Unlike secured cards that tie up your working capital, Ramp's business credit card qualifies you based on your company's financial health, not your personal credit score.
When comparing options for your business, you'll find Ramp provides distinct advantages:
- No security deposit required. Ramp evaluates your business based on factors like revenue and capital in the bank, keeping your cash accessible for critical investments.
- Higher credit limits. Access credit limits aligned with your business's true financial capacity, not arbitrary deposit-based restrictions.
- Cost-saving features. Businesses using Ramp save an average of 5% through built-in tools that identify redundant subscriptions and streamline spending.
- Integrated software platform. Ramp combines cards, expense management, bill payment, accounting, and reporting in a single system, eliminating manual reconciliation.
Ramp is particularly valuable for businesses looking to maximize cash flow, reduce administrative overhead, scale efficiently, or gain deeper insights into spending patterns. With Ramp, you gain immediate access to valuable credit while keeping your capital working where it matters most—growing your business.
Building your business credit with the Ramp Business Credit Card
When evaluating your options for business credit, it's important to consider both immediate needs and long-term financial goals. Secured business credit cards serve a specific purpose in helping companies establish credit foundations, but they often come with limitations that can constrain growth.
Ramp offers a more efficient path forward by qualifying businesses based on their actual financial health rather than credit history alone. This approach allows companies of all sizes to access the credit they need without tying up valuable capital in security deposits.
With Ramp, your business can:
- Save an average of 5% through built-in cost-cutting features
- Get approval for higher credit limits based on your business's actual capacity
- Streamline operations with 5-in-1 software that integrates cards, expenses, bills, accounting, and reporting
- Start building credit and earning rewards in minutes, not months
Whether you're establishing credit for the first time or looking for a more efficient alternative to your current financial tools, Ramp provides the flexibility and functionality businesses need to succeed in today's competitive landscape.

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