It is beneficial for companies that are just starting or that need to rehabilitate their company credit to apply for the Wells Fargo Credit Card. This card offers competitive cash-back rewards and advantages for what it is, and it is a smart option for firms in either of these situations. As is often the case with secured credit cards, unsecured cards offer better rewards. But if you don't have any other options, this Wells Fargo card is a good choice. Although it is similar to secured cards, the 1.5% cash-back return rate is lower than the rates offered by many unsecured credit cards. You can also get one point for every dollar you spend, but this is a good option for only a small number of cardholders.
Pros
- Structure of Variable Rewards
You can choose how you want to get rewards by Wells Fargo Secured card. You can get either 1.5 percent cash back on each purchase or one point for every dollar spent. Depending on how you use them, each point is worth up to a cent. If you select the rewards method, you will get 1,000 additional points if you spend $999 or more during any invoicing month.
- No Fees for Transactions Internationally
Not all secured cards have this feature, which is helpful if you work abroad or do business with vendors in other countries. All credit card purchases made in a foreign currency are often charged a foreign transaction fee of up to 3%. But the Wells Fargo Business Secured card doesn't charge a fee for transactions made outside the United States.
Cons
- Minimal Benefits
Even though it's common for a secured business card to have few perks, the Wells Fargo Business Secured has even less than some of its competitors.
- You Must Secure Your Credit Limit
If you're unfamiliar with how this sort of card functions, you should be aware that the Wells Fargo Secured card, like other secured cards, requires you to place a safety deposit on your account, which serves as your available credit. That makes it harder to use the card, especially at first. You can pay anywhere between $500 and $25,000.
This Card Is Ideal For
- Minimalist
- Business owners
The Wells Fargo Secured card is only for business owners who have little or no credit history or who are trying to improve their business credit. Wells Fargo will let the Small Business Financial Exchange know about payments and how cards are used. This will help build or improve your business's credit score. If you use the card well, you might be able to get business credit cards that don't require a credit check in the future. Wells Fargo says that it does regularly check unsecured card accounts to see if they can be upgraded to an unsecured business card.
Earnings Details for Rewards
We don't know why Wells Fargo made the rewards system for this card so complicated, but the fact that you can earn rewards at all with a secured card is a bit strange. You can get 1.5% cash back for every dollar spent on eligible purchases, or you can get 1 point for every dollar spent and 1,000 bonus points when the company spends $1,000 or more in a billing period. Cashback is the best option for most cardholders.
Details on Reward Redemption
If you choose the cashback plan, you can pay down debt or put money into a Wells-Fargo checking or savings account with the money you get back. But to get those rewards, you have to wait longer than with some other cards. Using your rewards points, you can get things like gift cards. You can buy flights with your points when you want to go somewhere.
Do You Need It
Like all secured cards, the Wells Fargo Business is done for people who want to fix bad credit or start building credit from scratch. The 1.5% cash back reward option on this card is easy, but the other reward option is a complicated points system that probably won't be the best deal unless you use this card a lot.
Conclusion
Small business owners who want to build credit for their businesses can use the Wells Fargo Business Secured card. It has a rewards program that lets you earn cash back or points, and using it responsibly by not going over your credit limit and paying on time can help you get an unsecured card in the future. Even though the Wells Fargo Business card has no benefits and has an annual fee, it does not charge a foreign transaction fee, which is helpful when working abroad or ordering from foreign suppliers in their currency.
