Bank of America Introduces New Secured Credit Offerings

“Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.”

Just like many Americans, small business owners may find that their credit could use some improvement. Unfortunately, establishing positive credit can be a bit of a Catch 22. Additionally, by not using credit cards, entrepreneurs could be missing out on rewards that could then be used to reinvest in their businesses. With that in mind, Bank of America has announced new secured credit offerings, including the launch of a secured small business rewards credit card.

With the new Business Advantage Unlimited Cash Rewards Mastercard Secured credit card, business owners can determine their own credit line with a security deposit. Currently, this can be between $1,000 to $10,000, with the deposit then corresponding to the customer’s credit limit. Then, Bank of America will periodically review the account with the possibility of secured customers being transitioned to unsecured products in the future. As for rewards, small business owners will earn 1.5% cashback on all purchases. The card carries no annual fee.

In addition to the new secured credit card, Bank of America will also be launching the Secured Business Advantage Credit Line later this year. Like with the card, customers will be able to set their credit limit with a deposit of at least $1,000 — but, in this case, limits can go as high as $50,000. The secured line of credit will also have an annual renewal fee of $150.

Best Business Credit Cards

For the complete list of business credit cards with all of the latest offers click below.

Get Rewards

Along with these two offerings, the bank has also introduced a new resource site for entrepreneurs. The Start a Business Center offers tips and guides to help aspiring business owners. Plus, using the platform, Bank of America customers can take advantage of a special discount for Incfile, making it easier for them to file their business formation paperwork.

Announcing the new offerings, Bank of America’s president of Small Business and head of Specialty Banking and Lending Sharon Miller said, “Bank of America is committed to providing small business owners with innovative solutions and advice that can help them grow their business and establish long term financial wellness. These latest offerings are designed to empower entrepreneurs by providing them with access to resources that will help them to start or strengthen their businesses.”

Overall, small business owners looking to build credit may find the Business Advantage Unlimited Cash Rewards Mastercard Secured credit card to be a good option. While the $10,000 top limit isn’t huge, the positive payment history could certainly help establish or repair their business credit — and the 1.5% cashback isn’t bad either. Elsewhere, the line of credit could also prove to be an interesting prospect and the Start a Business Center could certainly be of use. Yet, more than anything, it’s nice to see a huge corporation like Bank of America thinking about the needs of much smaller businesses and crafting new products that just might help them out.

DyerNews has partnered with CardRatings for our coverage of credit card products. DyerNews.com and CardRatings may receive a commission from card issuers.” (Note: advertising relationships do not have any influence on editorial content. Advertising compensation allows DyerNews.com to provide quality content for free. All editorial opinions are those of the individual author and/or Dyer News.)


Also published on Medium.

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Bilt Rewards Launches Travel Portal with Benefits for Cardholders

Last year, the startup Bilt made a splash when it announced a new service that would reward users for paying their rent. That premise was then expanded upon with the launch of the Bilt Mastercard, which is issued by Wells Fargo. Now, continuing to capitalize on both the hype of their product and the demand for travel, Bilt has debuted another new offering for customers. This week, Bilt Rewards announced...

Cash App Introduces Round-Up Investing Feature for Debit Card

Debit card customers looking to grow their investments gained a new, automated option today as Block Inc. (formerly Square Inc.) officially announced a new feature for its popular Cash App. Now, customers with the Cash App Cash Card can opt into Round Ups as a means of growing their investments. When this feature is toggled on, Cash App will round up debit card purchases to the nearest dollar and invest...

Marqeta Expands Credit Program with New APIs and More

A FinTech that specializes in creating credit card experiences is rolling out some new features. This week, Marqeta announced what it calls a "significant expansion" of its credit platform. This includes more than 40 new credit APIs that will further help clients craft and launch their own credit card products. Additionally, the company notes an updated intuitive dashboard. Using this platform, businesses can create unique card options that can not...