| Last updated on February 29th, 2024
Business Advantage Unlimited Cash Rewards Secured Credit Card
Business Advantage Unlimited Cash Rewards Secured Credit Card
Business Advantage Unlimited Cash Rewards Secured Credit Card
- 28.49% variable based on the Prime Rate Regular Purchase APR
- 28.49% variable based on the Prime Rate Balance Transfer APR
- 29.49% variable based on the Prime Rate Cash Advance APR
At a Glance
The Business Advantage Unlimited Cash Rewards Secured Credit Card provides businesses with a credit lifeline for no annual fee. The card, which requires a $1,000 minimum security deposit, earns unlimited 1.5% cash back, with even more rewards through Bank of America Preferred Rewards for Business.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- No annual fee
- Earn unlimited 1.5% cash back rewards while establishing your business credit
- Flexible redemption options
- Seamless transition from secured credit to unsecured with financial responsibility
- Regular Purchase APR: 28.49% variable based on the Prime Rate
- Balance Transfer APR: 28.49% variable based on the Prime Rate
- Balance Transfer Transaction Fee: Either $10 or 4% of the amount of each transaction, whichever is greater
- Cash Advance APR: 29.49% variable based on the Prime Rate
- Cash Advance Transaction Fee: Either $10 or 4% of the amount of each transaction, whichever is greater
- Foreign Transaction Fee: 3% of the U.S. dollar amount of each transactio
- Late Payment Penalty Fee: Up to $49
- Minimum Deposit Required: $1,000
- You own a business but don’t want to impact your personal credit score
- You want a versatile cash back rewards card
- You have an existing BoA relationship and Preferred Rewards account
- You don’t want to pay an annual fee
In-Depth Review: Bank of America® Business Advantage Unlimited Cash Rewards Secured Credit Card
The Business Advantage Unlimited Cash Rewards Secured Credit Card is a business rewards card that provides unlimited 1.5% cash back on every purchase while establishing a strong credit profile with no-time payments. The card from Bank of America also features a decent 0% introductory APR period on purchases, bonus statement credit offers, and more – for no annual fee.
Who Can Benefit from the Unlimited Cash Secured Card?
The Bank of America® Business Advantage Unlimited Cash Rewards Secured Credit Card is specifically tailored to cater to the needs of small businesses and entrepreneurs who are seeking to either establish or rebuild their credit. This credit card offers a multitude of advantages and benefits that can greatly assist in achieving financial stability and growth.
Whether you are a budding entrepreneur or a seasoned business owner, this credit card provides a secure and reliable option to help you navigate the world of credit and finance. With its unlimited cash rewards program, you can earn rewards on every purchase you make, allowing you to maximize your savings and reinvest in your business. Additionally, the secured nature of this credit card ensures that you can build or rebuild your credit history with responsible usage. This is particularly beneficial for those facing financial challenges and looking for a fresh start.
How to Get the Card
You must meet certain criteria to qualify for the Business Advantage Credit Card. The card is designed for small to medium-sized businesses, so you must have a registered business entity to apply. Sole proprietors, partnerships, and corporations can apply for this card.
Business Information Required
- Business tax ID (or Social Security number for sole proprietors)
- Legal business name and structure
- Date of business formation
- Country and state of legal formation (if formed in the U.S. for online applications) and primary business operations location (must be a U.S.-operating business)
- Gross Annual Sales and net profit
- Beneficial Owner and Controlling Manager details:
- Name and title of the person opening the account
- Name and address of the entity for the account
- Certification that the provided information on the Beneficial Owner and/or controlling manager is accurate
Credit-Builder Benefits
$1,000 Minimum Security Deposit
Secured credit cards require a security deposit, which serves two purposes: securing the credit line and acting as the credit limit. The Business Advantage Unlimited Cash Rewards Secured Card offers a range of security deposit options, from a minimum of $1,000 and going up to a maximum of $10,000.
Build Credit with Responsible Use
Since it’s a secured business card, cardholders can help their company build credit with every swipe when companies make consistent, on-time payments to improve the business credit over time. Bank of America reviews accounts and reports to the major credit bureaus.
Transition to the Unsecured Business Advantage Card
One of the advantages of secured credit cards from larger banks is the possibility of upgrading from secured to unsecured credit. This transition occurs when all monthly payments are consistently made, and balances are kept at a reasonable level, reflecting the natural growth of credit.
Bank of America regularly monitors accounts and may offer the opportunity to transition to an unsecured card if the business’s overall credit history improves. When upgrading, businesses will be able to choose from the following cards:
- Bank of America® Business Advantage Unlimited Cash Rewards Credit Card
- Bank of America® Business Advantage Travel Rewards World Mastercard®
- Bank of America® Business Advantage Customized Cash Rewards Credit Card
However, not all customers will qualify for this upgrade. Therefore, the primary focus should be building credit rather than earning rewards.
How to Earn Rewards
The Business Advantage Unlimited Cash Rewards secured card offers unlimited rewards. It earns an unlimited 1.5% cash back on all purchases, with no caps.
While 1.5% back on purchases is not the highest in the industry, it is a solid reward rate. This rate can increase even further for eligible Bank of America Preferred Rewards for Business account holders. With these accounts, you can earn up to 75% more cash back on purchases. The highest-tier companies can earn up to 2.62% cash back on all purchases.
Even at the base level, Bank of America Preferred Rewards for Business offers 25% more rewards, or 1.875% cash back on all purchases. These tiers make the Business Advantage Unlimited Cash Rewards Credit Card a great choice for companies with a relationship with Bank of America.
How to Redeem Rewards
Redeeming the cash back rewards offered by Bank of America is a simple and hassle-free process. Businesses can easily access cash rewards by applying them as statement credits on the card account. Additionally, these rewards can be conveniently deposited into Bank of America checking or savings accounts, providing even more flexibility. For those who prefer a more traditional approach, Bank of America also offers the option to receive the rewards as a physical check, which will be promptly mailed to the accountholders.
Business Management Benefits
The Bank of America® Business Advantage Unlimited Cash Rewards Secured Card offers several benefits that can streamline your business operations and enhance financial management. One of the primary advantages of this card is its flexible credit limit, which allows you to make larger purchases and manage your cash flow more effectively.
The Unlimited Cash Rewards Business Secured Card simplifies money management with automatic bill payments, QuickBooks account integrations, and 24/7 online and mobile banking. This flexibility is particularly important for cardholders when keeping track of an employee’s account activity after giving them a card at no additional cost.
Mastercard® Business Benefits
| Zero Liability | ID Theft Protection | Global Emergency Services | Mastercard Biz access |
| Car rental insurance | Mastercard Airport Concierge | Priceless Golf | Priceless Experiences |
| Mastercard Business Controls | Receipt Management | Mastercard Easy Savings® | Intuit QuickBooks® and TurboTax® |
| Salesforce Essentials | Microsoft 365 |
Comparison
| Ramp Card | Revenued Business Card Visa® | Business Advantage Unlimited Cash Rewards Secured Card | |
|---|---|---|---|
| Welcome offer | N/A | Receive $500 in cash back after spending $5,000 on your card in the first 3 months | N/A |
| Rewards | Earn unlimited 1.5% cash back on every purchase | Earn 3% cash back on every purchase | Earn unlimited 1.5% cash back on every purchase |
| Integrations | Block or restrict spending to a specific vendor – for either a specific card or your entire company | N/A | QuickBooks |
| Fees | No fees – including foreign transaction, setup, or replacement fees | No fees or hard credit checks to apply | $1,000 deposit |
Tips for Building Business Credit
Building business credit doesn’t have to be confusing. Here are some practical steps to help your company establish a strong credit history:
| ① Don’t treat business credit like free money | Credit cards can seem like free money to spend, especially when those purchases aren’t automatically deducted from your company’s bank account immediately. Because credit cards can seem like “invisible money”, you should always treat credit lines as you would you own physical funds. Only spend what you can afford to pay off either right away, or easily with a strict payment plan. |
| ② Make more than just the minimum payment | Making the minimum monthly payment due on your credit card can seem like a good idea, but it can result in quickly accumulating significant credit card balances. Always try to pay off the full balance owed every month. |
| ③ Work with partners that report to credit bureaus | Building credit requires working with partners who report credit and financial details to the major reporting bureaus. Some lenders, including SmartBiz and Fundbox, do not report to credit agencies and won’t build your business credit. |
| ④ Monitor your credit reports | Businesses have credit reports just like consumers. Business credit reports in the United States are typically generated by Dun & Bradstreet, Experian, and Equifax. |
| ⑤ Keep your information current | When you monitor your business credit, always make sure to check if your company’s information is up to date. Check to ensure contact information is accurate, there are no unknown trade lines, or other incorrect information. |
What We Like About the Card
Build Credit
Business secured cards are a very rare breed. Typically, businesses with no credit history are forced to rely on the personal guarantee of the business owner or another senior employee. And while this is a great way to gain business funding, it comes with severe risks for the person’s personal credit.
The Business Advantage Unlimited Cash Rewards Secured makes building credit easier, thus saving companies money, and the primary accountholder the potential financial exposure of a negative business credit event.
Unlimited Rewards
The unlimited cash rewards program with the secured card can be a game-changer for businesses with significant expenses. Imagine earning cash back on all your business purchases, from office supplies to travel expenses. This can add up to substantial savings over time and contribute to the growth and profitability of your business.
Decent Management Tools
Furthermore, the Business Advantage Credit Card offers a range of additional benefits and perks that can enhance your overall business experience. These include access to a dedicated customer service line for business cardholders, extended warranty protection on eligible purchases, and travel accident insurance. These extras can provide peace of mind and support for your business needs.
Things to Consider
While the Business Advantage Credit Card offers many benefits, it may not be the right choice for every business.
Foreign Transaction Fee
The card charges a foreign transaction fee of 3% of the transaction in U.S. dollars. The card isn’t the only one to charge this, but that doesn’t mean it does limit the value your company can expect from the card should your employees use it to make purchases abroad.
Bank of America Ratings
How does Bank of America stack up as a credit card issuer? Here is a selection of expert and consumer ratings for Bank of America:
| BestCards | Better Business Bureau | TrustPilot |
|
2/5 |
1.5/5 |
1.5/5 |
Should You Apply for the Business Advantage Unlimited Cash Rewards SecuredCredit Card from Bank of America?
Overall, the Business Advantage Unlimited Cash Rewards Secured Credit Card is a lucrative cash back card for companies that lack a solid credit history but have deposit accounts with Bank of America. The card provides the most value for these companies – including up to 2.62% cash back on all purchases.
The card also provides a streamlined approach towards building credit – including the chance to advance and graduate to the unsecured Business Advantage Unlimited Cash Rewards. Building credit is a process, so having an end destination in mind is a great feature that gives companies a sense of growth and achievement. Oh, and the cash rewards don’t hurt, either.
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