Capital One® Spark® Classic for Business (Review) – Build Business Credit
Learn more about this card and find out how you can apply here.
Capital One® Spark® Classic for Business is a business credit card for business owners with fair credit. Though its reasonable cash back rewards rate and minimal fees – including no annual fee – are nice benefits for anyone who likes low-cost rewards credit cards, Spark Classic’s real utility lies in its credit-building power.
Spark Classic competes with a number of other entry-level business credit cards, including Capital One’s own Spark Cash Select and Spark Miles Select, both no-annual-fee cards that cater to business owners with excellent credit and earn rewards at higher rates. It also competes with popular business cards like Chase Ink Business Cash, U.S. Bank Business Edge Cash Rewards, American Express Business Green Rewards, and American Express Blue Business Plus.
Keep in mind that, as an entry-level business credit card, Spark Classic lacks some of the perks of higher-end competitors. For instance, it doesn’t offer an early spend bonus or introductory APR deal, and advises applicants to expect initial credit limits as low as $500.
This card earns an unlimited 1% cash back on every purchase. You can redeem accumulated cash back in any amount for statement credits or paper checks. You can also set up automatic redemptions that send paper checks or apply statement credits once you hit a predetermined cash back threshold: $25, $50, $100, or $200.
Though Capital One allows you to redeem accumulated cash back for gift cards and other items, non-cash redemption rates tend to be lower than the standard $0.01 per cash back point and are subject to change without warning.
There is no annual fee, foreign transaction fee, balance transfer fee, or fee for extra employee cards. The cash advance fee is the greater of $10 or 3% of the advanced amount, and the late payment fee is $39.
At the end of each quarter, and again at the end of the year, you receive a detailed summary of your spending during the preceding quarter and/or year, including employee card spending, if any. The summary includes categorized, itemized spending records designed to simplify your business’s tax preparation, budgeting, and accounting processes.
You’re entitled to receive downloadable purchase records designed for easy translation to accounting software such as QuickBooks, Excel, and Quicken. This further simplifies the accounting and tax prep processes.
Capital One Spark Classic’s general benefits include complimentary auto rental collision damage coverage when the full amount of the rental is charged to your card, luggage protection up to $3,000 per trip, and 24/7 emergency travel assistance services such as lost card replacement and ticket replacement.
This card requires average, fair, or limited credit. Even if you have significant blemishes on your credit record, you can still expect to be considered for this card. However, very serious issues, such as a recent bankruptcy or foreclosure, may be disqualifying.
Capital One® Spark® Classic for Business is a “classic” starter credit card for business owners with big plans and so-so credit. It’s very similar to the Capital One QuicksilverOne consumer credit card, which is also geared toward people with fair to average credit, comes with moderate starting credit limits, and doesn’t accrue cash back rewards as quickly as its more generous peers.
If used responsibly, both Spark Classic and QuicksilverOne are tailor-made stepping-stones to credit cards with higher spending limits, lower APRs, better rewards, and more attractive fringe benefits. You have to start somewhere – and this is as good a place as any.
Learn more about this card and find out how you can apply here.
Capital One® Spark® Classic for Business is ideal for small business owners who are just starting out on the path to financial fitness and don’t yet have a solid credit history. It’s not as useful for business owners with better credit, as they’re likely to qualify for cards with more generous rewards schemes and favorable terms.
This card’s minimal fees, flexible redemption scheme, and generous credit standards are all very beneficial.
Its low credit limit, limited business benefits, and lack of incentives for new cardholders (such as an early spend bonus) do hurt.
Overall, this is a great card for business owners looking to build credit.
Editorial Note: The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
Categories: Capital One, Credit and Debt, Credit Cards, Reviews, Small Business
Brian Martucci writes about frugal living, entrepreneurship, and innovative ideas. When he’s not interviewing small business owners or investigating time- and money-saving strategies for Money Crashers readers, he’s probably out exploring a new trail or sampling a novel cuisine. Find him on Twitter @Brian_Martucci.
Comments Disclosure: The below responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.
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Capital One® Spark® Classic for Business (Review) – Build Business Credit
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