Wells Fargo Business Secure Credit Card Review – Forbes Advisor

Earn rewards

Why Wells Fargo makes the rewards earned with this card so complicated is beyond us, but nonetheless, the ability to earn rewards on a secure card is somewhat unique.

The card offers the possibility of earning 1.5% cash back or 1 point per dollar spent. The cash back option is the best option for most cardholders. Cardholders planning to spend between $ 1,000 and $ 2,200 each month can take advantage of the points option. Read on to understand why.

Redeeming rewards

Earning 1,000 points for spending $ 1,000 in a month has a cash equivalent of $ 10. This, in addition to the 1,000 bonus points earned for the $ 1,000 in spending required to achieve the 1,000 point bonus, equals a cash match of $ 20 when redeemed for a credit on the 1 cent statement. by point. Add 10% for the online points redemption bonus and earn an extra $ 2. That’s more than the $ 15 earned on the same expenses via 1.5% cash back.

But with just over double the minimum spend required for the bonus, 1.5% cash back gives a bigger reward. At $ 2,200 spent each month, the 1.5% Cash Back will reward the same amount as the points system. Anyone with guaranteed spend less than $ 1,000 or more than $ 2,200 each month should opt for Cash Back Rewards. Anyone whose expenses are set between these numbers will earn a few more rewards with the points system.

The mathematical values ​​above indicate one cent on the dollar. This may vary, both because Wells Fargo may choose at any time to change the entire rewards system in any way (including canceling it entirely without notice) and also because points can be redeemed. against flights or goods from an airline. Deep in the fine print, there is a redemption fee of $ 24 for airline tickets.

If we haven’t made our opinion clear yet, let us explain it: The points rewards system with this card has some major hidden details that could make the rewards redemption obnoxious.

Reward potential

The rewards potential offered by this card depends not only on the amount of business expenses that will be allocated to the card, but also on the chosen rewards structure.

If the business makes $ 2,000 in purchases per month, it will be beneficial to choose to earn points instead of cash back. With these expenses, 3000 points per month will be earned. This translates into annual earnings of 36,000 points which can be redeemed for $ 360.

A business with larger spend will receive 1.5% cash back instead of points. A monthly spend of $ 3,000 would result in an annual cashback of $ 540.

The first step in maximizing the rewards potential with this card is to determine the monthly business spend and choose between earning points or cash back accordingly.

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