Capital One® Spark® Classic for Business Review

CAPITAL ONE® SPARK® CLASSIC FOR BUSINESS BENEFITS

The Capital One® Spark® Classic for Business offers several benefits:

• No annual fee
• 1% cash back rewards on all purchases
• Automatic fraud and security alerts
• No fraud liability for lost or stolen cards
• Free employee cards that each can be set for customized spending limits and also earn rewards
• Cardholders pick their own monthly bill due dates
• Ability to set up automatic payments
• Ability to conveniently download purchase records in QuickBooks®, Excel®, or Quicken® formats
• No foreign transaction fees for purchases made outside of the United States
• Roadside assistance services, such as towing, jump-starting, and tire changing
• Emergency travel assistance services, such as ticket replacement and legal and medical referrals
• Extended warranty and protection on eligible purchases

FEATURED CARD

 

Capital One Venture Rewards Credit Card

• Enjoy a one-time bonus of 75,000 miles once you spend $4,000 on purchases within 3 months from account opening, equal to $750 in travel
• Earn unlimited 2X miles on every purchase, every day
• Miles won't expire for the life of the account and there's no limit to how many you can earn
• Receive up to a $100 credit for Global Entry or TSA PreCheck®
• Enjoy two complimentary visits per year to Capital One Lounges or to 100+ Plaza Premium Lounges through our Partner Lounge Network
• Earn 5X miles on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options
• Use your miles to get reimbursed for any travel purchase-or redeem by booking a trip through Capital One Travel
• Transfer your miles to your choice of 15+ travel loyalty programs

Learn More

Credit Needed:

Excellent, Good

WHAT OUR EDITORS LIKE MOST ABOUT CAPITAL ONE® SPARK® CLASSIC

If you're a small business owner who needs credit, it can be difficult to find a lender that will issue a business card to you – especially if you have no credit history or a less than perfect credit history. But the Capital One® Spark® Classic for Business could be the solution you're looking for.

This card is designed specifically for business owners who need to build up a limited credit history, as well as those who have fair credit (i.e., a FICO score of 580 to 669 or a VantageScore of 650 to 699) based on their personal credit history. Also, this card gives you the opportunity to earn 1% cash back rewards on all of your purchases, without paying an annual fee.

CAPITAL ONE® SPARK® CLASSIC FOR BUSINESS REQUIREMENTS

In order to qualify for Capital One® Spark® Classic for Business, you should:

• Be at least 18 years old
• Have a business that was legally formed, incorporated, or registered in the United States
• Supply the business name as you want it to appear on the card, as well as a business tax ID number, and information on legal business structure, ownership type, category, industry, or specialty
• Submit the business contact (business address, phone number, email address) and financial (types of bank accounts, monthly expenditures, yearly revenue) information
• Submit personal identifying information (name, Social Security number, date of birth, business title), contact (phone number, address), and financial (monthly housing payment, annual income) information

CAPITAL ONE® SPARK® CLASSIC FOR BUSINESS FEES

The Capital One® Spark® Classic for Business does not charge an annual fee, which is rare with business cards that also offer rewards programs. There is also no foreign transaction fee, so if you have business expenses outside of the U.S., it's a good card to use instead of one of the others, which may charge as much as 3% per foreign transaction.

HOW CAPITAL ONE® SPARK® CLASSIC FOR BUSINESS COMPARES TO OTHER CREDIT CARDS

Capital One® Spark® Classic for Business vs. Capital One Spark Cash Plus

Capital One® Spark® Classic for Business and the Capital One Spark Cash Plus are both popular cards for business owners, and they both offer benefits like free employee cards, no fees for foreign transactions, and emergency and travel assistance.

However, Spark Cash Plus offers benefits that Capital One® Spark® Classic for Business does not, such as up to a $1,000 cash bonus; $500 once you spend $5,000 in the first three months, and $500 once you spend $50,000 in the first six months of account opening.

Also, although they both provide unlimited cash back rewards for all purchases, Spark Cash Plus offers 2%, rather than Spark® Classic's 1%.

On the other hand, the Capital One® Spark® Classic for Business does not charge an annual fee, while the Spark Cash Pus card has an annual fee of $150.

Capital One® Spark® Classic for Business vs. Chase Ink Business Unlimited®

The Capital One® Spark® Classic for Business and the Ink Business Unlimited® Credit Card both have no annual fee and allow cardholders to add employee cards at no additional cost.

However, the major similarities between the two cards end there.

The Ink Business Unlimited® Credit Card offers a modestly higher cash back reward rate of 1.5% on all purchases. Plus, there's a welcome bonus for new cardholders, of $750 cash back if you spend $7,500 on purchases in the first three months of opening the account.

Also, the Ink Business Unlimited card includes a 0% introductory APR on purchases for the first 12 months and then, 13.99% - 19.99% Variable

Capital One® Spark® Classic for Business vs. American Express Blue Business Cash

See Rates and Fees; terms apply

The Capital One® Spark® Classic for Business and the American Express Blue Business Cash™ Card (American Express is a CardRatings advertiser.) both allow cardholders to obtain free employee cards.

Also, both cards provide cash back on purchases, but the American Express Blue Business Cash™ Card offers a higher rate at 2% up to $50,000 annually, and then down to the same 1% rate as the Spark® Classic card.

The Blue Business Cash card also offers a 0% introductory APR on purchases for the first 12 months of opening the account and then 14.74% - 22.74% Variable. It also allows you to spend above your credit limit with its Expanded Buying Power, but that benefit is not unlimited and it is adjusted based on your credit history, how you use your card, and your payment history.

The Blue Business Cash card, however, does have a disadvantage for those who make foreign purchases, as the card charges 2.7% of each transaction after conversion to US dollars., while the Capital One® Spark® Classic for Business has no transaction fees on foreign purchases.

POTENTIAL DOWNSIDES OF THE CAPITAL ONE® SPARK® CLASSIC FOR BUSINESS CARD

The Capital One® Spark® Classic for Business 26.99% (Variable) APR is definitely higher than cardholders pay with other cards, however, it may be more difficult for people who have no business credit history, or a fair credit history, to qualify for other cards.

The rewards rate is also one of the lowest rates available at 1% cash back, so if you are interested in earning rewards on your business purchases and you can qualify for other credit cards, then you should consider a business card that offers more valuable rewards and bonuses.

SHOULD I GET THE CAPITAL ONE® SPARK® CLASSIC FOR BUSINESS CARD?

Despite the high APR, the Capital One® Spark® Classic for Business does offer several benefits that cardholders can take advantage of, such as the 1% cash back rewards on all purchases, including those made on employee cards.

If you are a business owner who needs to build up your credit rating, this card can help you pay for the supplies you need until you're able to get a card with a lower APR rate and more robust rewards.

For rates and fees for American Express Blue Business Cash™ Card (See Rates and Fees; terms apply).