Bank of America Business Advantage Unlimited Cash Rewards Secured credit card review: A secured business card attainable for those with bad credit
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BLUEPRINT
Updated 6:38 a.m. UTC Nov. 14, 2023
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The Bank of America® Business Advantage Unlimited Cash Rewards Secured credit card * The information for the Bank of America® Business Advantage Unlimited Cash Rewards Secured credit card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. is an oxymoron when it comes to business credit cards: You can get approved with bad credit and earn rewards, too.
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Bank of America Business Advantage Unlimited Cash Rewards Secured card basics
- Annual fee: $0.
- Welcome bonus: None.
- Rewards: 1.5% cash back on purchases.
- APR: 28.49% variable APR on purchases and balance transfers. A balance transfer fee of 4% of each transaction applies.
- Other perks and benefits: Cash flow management tools, travel accident insurance, plus auto rental insurance, lost luggage assistance and legal and medical referrals.
- Does it report to all three credit bureaus? Only reports to Equifax if the account is not in good-standing.
- Does the issuer offer a preapproval tool? No.
- Recommended credit score: Bad credit is accepted.
About the Bank of America Business Advantage Unlimited Cash Rewards Secured card
The Business Advantage Unlimited Cash Rewards Secured card comes with no annual fee and cardholders earn a flat 1.5% cash back on purchases. As a secured card, there is a minimum cash deposit requirement of $1,000 to open the card. This card is geared to small-business owners and entrepreneurs who have limited business credit history or negative information in their personal credit reports.
This card will report balances and payments to your business credit report with Equifax, which can help you boost your business credit through responsible use. Ultimately, this means the Bank of America Business Advantage Unlimited Cash Rewards Secured card builds business credit but not personal credit, even though it does require cardholders to personally guarantee repayment. Also be aware that any negative information on an account, such as late payments, can be reported to personal credit reports. This means this business card will not help your personal credit, but using the card irresponsibly can still harm your personal credit in the long run.
Other card benefits include cash flow management tools and a range of travel insurance benefits. For example, the card offers $100,000 in travel accident insurance, auto rental insurance, lost luggage assistance and legal and medical referrals when away from home.
There are some downsides to this card and they become especially apparent when you compare it to the best business credit cards available today. First, the Bank of America Business Advantage Unlimited Cash Rewards Secured card does not offer a welcome bonus of any kind, and it comes with a sky-high variable interest rate of 28.49% variable APR on purchases and balance transfers. A balance transfer fee of 4% of each transaction applies.
This Bank of America business card also charges 3% of the U.S. dollar amount of each transaction in foreign transaction fees when you use it for purchases abroad. This makes it a poor choice for making purchases abroad.
Pros
- Available to borrowers with bad credit: It’s unusual to find a business card designed for those with less-than-stellar someone credit.
- Simple, yet generous cash-back rate: This card offers a flat 1.5% cash back on purchases. It’s rare to find rewards on a secured card, even more so for a business secured card.
- Build business credit: The Bank of America Business Advantage Unlimited Cash Rewards Mastercard Secured card reports to Equifax’s Small Business reporting division and can help build up business credit through responsible use.
- Potential to upgrade to an unsecured card: Bank of America will periodically review accounts to see if you qualify for an upgrade to an unsecured card.
- Free Dun & Bradstreet business credit score: Having access to this score helps business owners monitor their business credit progress over time.
- No additional fee for authorized users: With more cards for employees, business owners have the potential to earn more rewards.
Cons
- Security deposit required: Applicants need a minimum of $1,000 to put down as collateral when they apply.
- Does not help build personal credit: While the Bank of America Business Advantage Unlimited Cash Rewards Secured card helps build business credit, it does not help build personal credit.
- Late payments can still hurt your credit: While accounts in good standing aren’t reported to your personal credit reports, late payments and other negative information can be.
- No welcome offer: Unlike many other business credit cards, this one does not offer a welcome bonus of any kind, but that’s standard for a card aimed at a lower credit profile.
- High APR: The high interest rate for purchases and balance transfers make it costly to carry a balance on this card.
Cash-back rewards
The Bank of America Business Advantage Unlimited Cash Rewards Secured card keeps things simple when it comes to the way it calculates rewards for business spending. The card earns a flat 1.5% cash back on purchases or $15 in cash back for every $1,000 you make in business purchases on the card.
On the redemption side of the equation, options are flexible yet still fairly basic. According to Bank of America, rewards earned with this card can be redeemed for a deposit into your Bank of America checking or savings account, a statement credit or a check in the mail.
APR
The Bank of America Business Advantage Unlimited Cash Rewards Secured card comes with a 28.49% variable APR on purchases and balance transfers. A balance transfer fee of 4% of each transaction applies.
The high rates and fees makes it a poor option for business owners who carry a balance from time to time, or who want to consolidate debt through a balance transfer.
Security Deposit
This card requires a security deposit of at least $1,000 to get started, which is fully refundable when the account is closed or upgraded in good standing. After the deposit is made, the amount becomes the new credit limit on the card.
Bank of America Business Advantage Unlimited Cash Rewards Secured card rewards potential
Using government data and other publicly available information, we estimate that a household in the U.S. that might be in the market for this card has an annual income of $84,352 and $25,087 in expenses they are likely to be able to charge to a credit card.
With the 1.5% cash back on purchases rate on the Business Advantage Unlimited Cash Rewards Secured card, business owners who spend $25,087 on the card can earn $376 in cash back each year.
How the Bank of America Business Advantage Unlimited Cash Rewards Secured card compares to other cards
Bank of America Business Advantage Unlimited Cash Rewards Secured card vs. Capital One Spark 1% Classic * The information for the Capital One Spark 1% Classic has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
If you’re looking for a business credit card, and your personal credit score is in the “fair” range, you should check out Capital One Spark 1% Classic * The information for the Capital One Spark 1% Classic has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. .
This business credit card is geared to individuals with FICO scores in the 580 to 669 range but it is unsecured, which means no deposit is required to open the account. There’s no annual fee and there are no foreign transaction fees, however you only earn 1% cash back on every purchase and 5% cash back on hotels and rental cars booked through Capital One Travel.
Ultimately, Capital One Spark 1% Classic * The information for the Capital One Spark 1% Classic has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. is for business owners working on their credit who want to earn rewards and access a line of credit without putting down a security deposit.
Bank of America Business Advantage Unlimited Cash Rewards Secured card vs. The American Express Blue Business Cash™ Card * The information for the The American Express Blue Business Cash™ Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
If you’re considering business cards from other networks, you’ll want to look at The Amex Blue Business Cash card (terms apply). This business credit card is not secured, and applicants need good credit to qualify. However, there are quite a few perks and benefits you won’t get with the Business Advantage Unlimited Cash Rewards Secured card.
For starters, you can earn a $250 statement credit after spending $3,000 in purchases in the first three months of card membership.
You also earn 2% cash back on all eligible purchases (automatically rewarded via statement credits), up to $50,000 per calendar year, then 1%. Better yet, the The American Express Blue Business Cash™ Card * The information for the The American Express Blue Business Cash™ Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. comes with a 0% intro APR on purchases for the first 12 months, then a 18.49% to 26.49% variable APR.
All information about The American Express Blue Business Cash™ Card has been collected independently by Blueprint.
Bank of America Business Advantage Unlimited Cash Rewards Secured card vs. Discover it® Secured Credit Card
If you want a credit card but your credit is in bad shape, it might make sense to work on improving your personal credit first via a personal secured card like the Discover it® Secured Credit Card. This card isn’t for business purposes, nor does it build your business credit, but it can help improve your personal credit with a starting security deposit of just $200.
The Discover it® Secured Credit Card also comes with no annual fee, and cardholders earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter and 1% cash back on all other purchases. Discover will automatically match all the cash back earned at the end of the first cardmember year.
Should you get the Bank of America Business Advantage Unlimited Cash Rewards Secured card?
The Bank of America Business Advantage Unlimited Cash Rewards Secured card is best for business owners who won’t qualify for an unsecured business credit card. The card can also help build business credit, but not personal credit – an important distinction. Just remember that negative information on your account can still harm your personal credit since this card reports negative information to personal credit reports.
There are many reasons for a business to seek a strong business credit score, including improved access to future business loans. Having a dedicated business credit card also makes it much easier to keep personal and business expenses separate, which is especially useful at tax time. The Bank of America Business Advantage Unlimited Cash Rewards Secured card’s ability to earn 1.5% cash back on purchases is just icing on the cake.
Bank of America Business Advantage Unlimited Cash Rewards Secured card summary
| BANK OF AMERICA BUSINESS ADVANTAGE UNLIMITED CASH REWARDS SECURED CARD DETAILS | |
|---|---|
Annual fee
| $0
|
Rewards
| 1.5% cash back on purchases
|
Welcome bonus
| None
|
APR
| 28.49% variable APR
|
Reports to all three credit bureaus?
| Only reports negative information to personal credit
|
Other perks and benefits
| Cash flow management tools, up to $100,000 in travel accident insurance, plus auto rental insurance, lost luggage assistance and legal and medical referrals
|
Methodology
Our credit cards team has spent hours analyzing hundreds of credit cards. We took a deep dive into the details of each product and that analysis, combined with our years of experience covering credit cards, informed us as we developed these credit card rankings. Factors we considered when we developed our rankings included:
- Annual fees.
- Any other fees, like account opening fees, monthly maintenance fees or credit limit request fees.
- If the card earned any rewards and/or a welcome bonus
- If the card requires a security deposit.
- If the card requires a credit score to apply.
Frequently asked questions (FAQs)
Since the Bank of America Business Advantage Unlimited Cash Rewards Secured card is a secured credit card, it may be possible to get approved regardless of your personal credit score. However, it’s important to note that positive account activity is not reported to the consumer credit bureaus (Experian, Equifax and TransUnion). As a result, using this card will not help you build personal credit.
Rewards earned with this business card can be redeemed for a deposit into a Bank of America checking or savings account, a statement credit or a check in the mail.
It may be possible to get this card with bad credit. However, it’s worth noting that a minimum security deposit of $1,000 is required.
*The information for the Bank of America® Business Advantage Unlimited Cash Rewards Secured credit card, Capital One Spark 1% Classic and The American Express Blue Business Cash™ Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
