Capital One® Spark® Classic for Business Review
Capital One® Spark® Classic for Business
CardRatings Editor's Analysis: Pros & Cons
- All of the flexibility of the Capital One® Venture® Rewards Credit Card without the annual fee.
- The sky’s the limit when it comes to how much cash back you can earn; 1% on every purchase.
- Using this card in a responsible manner can help bolster your corporate credit.
- If you have better than average credit you may want to consider a card with higher rewards potential.
TABLE OF CONTENTS
- Capital One® Spark® Classic for Business Benefits
- What We Like Most About the Capital One® Spark® Classic
- Capital One® Spark® Classic for Business Requirements
- Capital One® Spark® Classic for Business Fees
- Potential Downsides of the Capital One® Spark® Classic for Business Card
- How Capital One® Spark® Classic for Business Compares to Other Cards
- Should I Get the Capital One® Spark® Classic for Business Card?
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
- Earn 100,000 bonus miles when you spend $20,000 on purchases in the first 12 months from account opening, or still earn 50,000 miles if you spend $3,000 on purchases in the first 3 months
- 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 $100 application fee credit for Global Entry or TSA Pre✔®
- Redeem on travel-from vacation rentals to car rentals and more. Plus transfer your miles to over 10+ travel loyalty programs
- No foreign transaction fees
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.
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
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.
Capital One® Spark® Classic for Business vs. Spark® Cash for Business
Capital One® Spark® Classic for Business and the Capital One Spark Cash for Business 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 for Business offers benefits that Capital One® Spark® Classic for Business does not, such as a $500 cash bonus after spending $4,500 on purchases within three months of opening the account.
Also, although they both provide unlimited cash back rewards for all purchases, Spark Cash 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 card has an annual fee of $0 intro for first year; $95 after that.
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, 13.24% - 19.24% Variable
Capital One® Spark® Classic for Business vs. American Express Blue Business Cash
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 13.24% - 19.24% 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.
The Capital One® Spark® Classic for Business 24.49% (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.
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).