Bank of America Introduces New Secured Credit Offerings
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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.
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.
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