Our Take
4.4
NerdWallet rating
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.
Bank of America® Business Advantage Unlimited Cash Rewards Mastercard® Secured credit card
Annual fee
$0
Regular APR
27.49% Variable APR
Intro APR
None
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.
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
Full Review
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
at Capital on Tap | at Discover |
Annual fee $0 | Annual fee $0 |
Regular APR 17.49%-79.99% Variable APR | Regular APR 27.24% Variable APR |
Intro APR N/A | Intro APR 10.99% intro APR on Balance Transfers for 6 months |
Recommended credit score 630850average - excellent | Recommended credit score 300-629poor |
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. 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.At a glance: Bank of America® Business Advantage Unlimited Cash Rewards Mastercard® Secured credit card
💳 Card type: Secured business credit card.
💲 Annual fee:
$0
.💰 Sign-up bonus: None.
🎉 Rewards:
1.5%
cash back on every purchase.📈 APR:
27.49
% variable APR.📍 Security deposit:
$1,000
(minimum).💷 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.
Widely available
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.To work on your personal credit score, you’ll need a personal secured or credit builder card. Two excellent options are the
Capital One Quicksilver Secured Cash Rewards Credit Card
card and the Discover it® Secured Credit Card
. Both have no annual fee, earn rewards and offer upgrade options as your credit improves.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.Information for the Capital One® Spark® Classic for Business was collected by NerdWallet and not reviewed by or provided by Capital One.
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