Rewards rate: 1.5 percent cash back or 1 point per $1 spent and 1,000 bonus points for spending $1,000 each month
Welcome offer: None
Annual fee: None
Purchase intro APR: None
Balance transfer intro APR: None
Regular APR: 15.15 percent
Current welcome offer
While some credit cards come with cash back or points bonus when meeting specific spending requirements, that’s often not the case with secured cards. There’s currently no welcome offer or new cardmember bonus for the Wells Fargo Business Secured Credit Card. While this isn’t a deal-breaker, it’s always nice to see a little bonus tied to your new card.
Despite the lack of a welcome bonus, the card itself is still very rewarding for the category it falls under. In fact, the card earns rewards as competitively as some of the best, most rewarding secured credit cards. The rewards program for this card gives you two distinct rewards options to choose from. As many secured business cards don’t include any rewards, this standout feature makes the Wells Fargo Business Secured Credit Card a decent choice among similar cards.
For standard purchases, choose from these rewards options:
- 1.5 percent cash back
- 1 point for every $1 spent and 1,000 bonus points if you spend $1,000 each billing cycle
For businesses with large card-eligible purchases, it’s easy to see how the rewards can add up quickly, especially with the bonus point rewards option. In fact, if your business is reliably spending at least $1,000 each month on card-eligible and qualifying purchases, then the rewards value you earn in points is higher than the rewards value earned in cash back. If your business is opting for large purchases each month, then you should consider the points as your best bet to earn maximum rewards with this card. Just be wary that your hefty spending doesn’t lead to carrying a balance. You want to pay as little interest as possible.
With monthly card spending of $1,000, not only are you earning 1 point for each $1 spent, but you’re rewarded with 1,000 bonus points—which rounds out to roughly 2 points per $1 spent at this spending level.
How you earn
With cash back it’s easy to estimate the value of your rewards. For example, if you spend $2,000 on purchases in a statement period, you would earn a flat 1.5 percent back, worth $30. There’s also no limit to what you can earn, but there is a limit to what you can spend and that depends on how low or high your credit limit is as well as how frequently you pay your bill each month. So, calculate your deposit wisely because you certainly don’t want to go over your credit limit, especially because you’re supposed to be on a journey of credit recovery with a secured card. Since you can determine your credit limit with your initial security deposit, you should aim to deposit an amount that’s higher than your regular monthly spend so you aren’t maxing it out every month just to earn rewards.
If you choose to earn Wells Fargo Business Rewards points, you get 1 point for every dollar spent. In addition, you can earn a 1,000 point bonus (posted to the billing cycle following the cycle in which the points are earned) every month when you spend at least $1,000 with the card in a billing cycle. That’s up to 12,000 points per year from the bonus – a $120 value when redeemed.
However, if you have a credit limit of $1,000 then it won’t be wise to maximize it every month just to earn the bonus points. It’s a good idea to use a secured card like this as an opportunity to practice healthy financial habits. If you can and want to spend $1,000 every month, then make sure you have a monthly credit limit of at least $3,500. This will help you keep your credit utilization ratio under 30 percent and give you a little wiggle room in the event you need to make unexpected purchases. While credit utilization isn’t necessarily a large factor with this card because activity isn’t reported to the personal credit bureaus, it’s still worth paying attention to.
How to redeem
For cash back rewards, you don’t have to do anything to redeem. Rewards are automatically deposited to a linked checking or savings account quarterly. Cash back is paid out quarterly in March, June, September, and December.
For point redemptions using Wells Fargo Business Rewards, you have several options:
- Cash Rewards
- Gift Cards
- Air travel
- Car rentals
To redeem points, you can head to the rewards portal to navigate through redemption choices. If you redeem points online, you earn a 10 percent bonus on the number of points on the redemption amount, further adding to your points balance.
If you’re shopping anyway, you should also consider checking the Earn More Mall for links to participating merchants with store-specific bonuses. Bonuses include increased points on purchases that can be anywhere from 2 points to 35 points per $1 spent on purchases with your Wells Fargo Business Secured Card.