It is difficult to get a business credit until your company is well established. That way, business creators must put up their private assets and credit score to get approved for a business line of credit. However, you may not want to risk your personal credit for your company, or you cannot get it because of poor credit. Does Wells Fargo have a secured credit card for your business? The Wells Fargo Secured Credit Card is available for small businesses that need to build credit while complementing cash flow.
To understand how a Well Fargo secured credit card works, reflectthat card issuers need some way of guaranteeing that you canrepay your unsettled balances. Many credit cards use a credit score as the estimate of how possible you are to repay your bills. When your credit score isn’t up to equivalence, something else has to take its place to lesser a card issuer’s risk.
Secured credit cards need a refundable cash deposit as a security. The money you contribute usually becomes your credit limit. In case you default on the card balance, the card issuer will keep the deposit to cover the due balance. If you manage the secured card sensibly, the card issuer will likely report the affirmative action to the credit bureaus, aiding you to rebuild your credit. You may further get an unsecured credit limit growth and get your deposit back.
What is a Wells Fargo Secured credit card?
The Wells Fargo Secured credit card is a Master Card that allows you to build company credit after a trajectory record of accountable payments. A secured business credit card is a noble means of establishing credit for your company and get approved for a credit card with no credit but it has its limits. The pros of the card include;
- Build and restore your business’s credit history
- Get the Credit limit of up to $25,000
- Chance to upgrade to an unsecured credit
- Payment history gets informed to the Small Business Financial Exchange
- Select to get cashback or rewards points
- Earn 10% more points during online redemption
- You can receiveup to 10 employee credit cards
- Activity isn’t informed to the consumer credit bureaus thus, safeguarding your personal credit score.
Despite the card having the above-listed pros, some of its cons include;
- Needs a cash outlay of $500 to $25,000 to secure a related credit limit
- No sign-up bonuses are obtainable
- Restricted business credit card perks
- It won’t rebuild your personal credit
- You must be a Wells Fargo business bank account customer to apply
Some key highlights of the card include;
- Cash Back choice: You can earn 1.5% cashback on eligible purchases
- Reward Points choice: You can earn one point on every $1 spent and receive one thousand bonus points every billing cycle when you use at least $1,000 on eligible purchases
- $500 to $25,000 credit line
- Zero Liability protection
- No annual fee
- Spending reports are available online
- No Foreign transaction fee
How to apply for Wells Fargo Secured credit card?
You are needed to apply for the secured card online as Wells Fargo no longer accepts applications at a branch. In addition, you will need to provide the following.
- The legal business name, phone, address
- Company tax ID or Social Security number
- The Wells Fargo business account info
- Business type
- Number of business holders with 25% ownership or greater, to be provided as account guarantors.
- Your business’s gross annual revenue
You will also be requested for personal details like your date of birth, citizenship, and Social Security number. Though, Wells Fargo will not pull your credit report.
What is Wells Fargo accounts needed when applying for the secured card?
You must open the Wells Fargo business checking, or savings account before you can apply for the Wells Fargo Business Secured Card. Your money will be transferred from the deposit account to fund the credit line upon approval.
i) Eligible business checking accounts
The checking accounts for existing and new customers:
- Additional Navigate Business Checking
- Analyzed Business Checking
- Initiate Business Checking
- Navigate Business Checking
- Optimize Business Checking®
The checking accounts for existing customers only:
- Analyzed Business Checking Plus
- Business Cash Manager
ii) Eligible business savings accounts
The eligible saving accounts for existing and new customers include;
- Business Platinum Savings
- Business Market Rate Savings
How a Wells Fargo does secure card work?
When you apply for the card and get approved, you will require transferring money from your present Wells Fargo business bank account to work as the security deposit for the card’s credit line. You cannot use the money until you shut the card. It will serve as a standby if your business does not pay its credit card bill.
You can ask for up to 10 employee cards and use the Wells Fargo Business Secured Credit Card the similar way you use other credit cards. It is essential t to spend wisely and make your payments timely due to various reasons. The card provider will report your practice to the Small Business Financial Exchange to create a credit history.
Additionally, the bank will occasionally review your business accounts and card action to decide if you’re eligible for an unsecured business credit card. If you’re given an unsecured credit card, it may take about a month to have your security deposit back. Read our article on how long does it take to build credit with a secured credit card to learn more.
Build Business Credit History with Wells Fargo
The following are things you need to know about building business credit with Wells Fargo:
- Wells Fargo reports your eligible payment and usage behavior to the Small Business Financial Exchange.
- Payment and usage action of the Wells Fargo Business Secured Card is not reported to the consumer credit bureaus; therefore it wills not build or restoring personal credit history.
- You must make monthly payments on time, every time. Paying late or missing a payment can affect your business credit.
- Pay more than the lowest each month if you can. Once you pay less than the balance, your balance accumulates interest, which must be paid with the principal balance.
- Keep your balance minimum, but then use your card and pay on time to grow business credit.
- Be within your credit limit.
- Charge what you are able to pay back
Learn the tricks to Upgrade to Unsecured Credit?
Wells Fargo occasionally reviews your account and current credit history for a chance to upgrade to an unsecured business credit card. Learn the difference between secured and unsecured credit cards. You may become eligible with accountable use with time:
- Toupgrade to an unsecured credit card depends on some factors like managing your Business Secured Credit Card account and other factors likepayment history, FICOCredit Score, and the ratio of credit card practice to the credit limit.
- There is no current time edge for when you may upgrade into an unsecured business credit card. Note that the upgrade is not given automatically or guaranteed, irrespective of how long the account has been open.
- The Bank may hold indemnity for up to a month following account termination to cover transactions that may be forwarded to the credit card account after it is terminated.
How secure is you’re Well Fargo secured Credit Card?
Wells Fargo keeps your account secure in several ways. All credits cards are armed with chip technology which minimizes the risk of fraud. If you notice unusual activity, the Zero Liability Program will repay any fraudulent charges provided you report it.
You can set up warnings about spending usage to complement Wells Fargo’s fraud checking of your business accounts to hook suspicious activity early.
How to get customer support from Wells Fargo?
For inquiries and complainants with the secured card, you canvisit your local branch for assistance. Wells Fargo also gives two phone numbers for extra support:
- General inquiries: 1-800-416-8658
- Account maintenance: 1-800-225-5935
Are there secured business card options if I cannot pay a security deposit?
There are several ways to work around the security deposit. You can begin with a minor deposit and credit line of $500, for instance. Create minor purchases and pay your card on time to create a positive track record. With time, you may qualify for a credit limit growth without having to pay another security deposit.
In addition, you can apply for a business card that uses your personal credit score to approve you for a secured card. But, all actions will hurt your personal credit history.
Bottom line
Small businesses who find it difficult to establish a credit history that’s autonomous from the creators’ can find the Wells Fargo Business Secured Credit Card helpful. Use the secured card strategically so that your business may qualify for an unsecured business credit card after a period of timely payments and accountable spending.
