Capital One Spark Classic Business Credit Card Pros and Cons
When you hear about small business credit cards, the Capital One Spark Classic comes to mind. This card enables business owners with an average credit score or fair credit to get a small business credit card. It allows them to easily and quickly build their credit score up. We’ll be going over the top six pros and six cons with the Capital One Spark Classic card. By the end, you’ll be able to see if the Spark business small business credit card is right for you.
Pros of the Capital One® Spark® Classic for Business
Capital One Spark Business Classic is for Fair Credit and an Average Credit Score
Most small business credit cards require very good credit. The Capital One Spark Business card loosens that restraint. This is a credit card for fair credit or an average credit score. Business owners can get all of the perks of the Spark Business while building their credit score.
The Capital One Spark Business offers 1 percent cash back on purchases. These rewards are unlimited, and they don’t expire as long as your account is open. It also allows the cardholders to redeem their cash back with no minimum amount. This makes it very easy for cardholders to track and get their cash back rewards. You don’t have to keep track of multiple reward types either.
No Annual Fee With the Capital One Spark Classic Business Credit Card
Most rewards cards have an annual fee, not the Spark Business. They have an introductory $0 annual fee for the first year. After the first year, it stays at $0 as long as you have the card. This has the potential to save cardholders hundreds of dollars over the life of their card.
Small Business Credit Card With No Foreign Transaction Fees
If you’re a business, chances are you’ll have international transactions. The Capital One Spark Classic allows you to do this without a foreign transaction fee. So, this will be extremely helpful if you do a lot of business outside of the United States or if you travel for business a lot. Furthermore, you’ll be able to use your card without incurring additional fees for using it, and this saves money.
Capital One Spark Classic Offers Free Employee Cards
One of the biggest draws of the Spark Business card is free employee cards. This means that you can get a card for each of your employees at no extra cost. You’ll also be able to track their spending easily, and you won’t pay extra for it. As a business owner, you’re already spending quite a bit, so any way you can save is good. There is no cap on the amount of employee cards you can request either.
Download Purchase Records
The Capital One Spark Classic allows you to download all of your purchase records. Business owners can download this data into Excel, QuickBooks, and Quicken. So, you’ll be able to track all of your spending accounts easily and in one place. It also makes it extremely easy to get everything you need ready at tax time. This is a free service, and it one of the perks of using this card.
Cons of the Capital One® Spark® Classic for Business
This card works for people with fair credit, and so the APR is higher. If your credit is lower, you could get an APR up to 24.99 percent. This has the potential to add a lot of extra money on to your balance in interest payments. Also, if you keep a balance on this card, it’ll make your rewards pretty useless.
Low Introductory Credit Limit
If you have fair credit or an average credit score, you’ll get a lower introductory line of credit. This credit line could be as low as $500 to start. It also isn’t clear when you’ll be eligible for a higher line of credit. It’s important to know this so you can modify your expectations from the beginning.
No Signup Bonus
The Capital One Spark Classic doesn’t offer a signup bonus for any potential cardholders. So this is a drawback to anyone who wants a boost in their reward earning potential. You start from scratch and earn your rewards as you use your card. This means it can take longer to get to the amount you want. For a signup bonus consider the SimplyCash® Plus Business Credit Card from American Express.
Limited Benefits for Business
Many business credit cards offer incentives to get the business to spend more with certain merchants. The Capital One Spark Classic offers a flat 1 percent cash back, no matter where you spend. There are also no discounts offered with this card. This can be frustrating when you realize other cards offer as much as 5 percent in rewards for using certain vendors. So if you’re looking for a business credit card with the best benefits, keep shopping around.
Restricted Non-Cash Rewards Redemptions
The Capital One Spark Classic has rigid redemption rules. If you redeem your rewards for gift cards, you’ll get less than you had in rewards. There is very little flexibility about this, and if you’re looking for something other than cash, this isn’t your card. If you have better than average credit you might want to consider the Capital One® Spark® Miles Select for Business.
No Introductory APR
Several business credit cards offer a 0 percent introductory APR rate. This includes purchases and balance transfers for the first 12 or 18 months. You won’t get this with the Capital One Spark Classic card. You get the card, and you pay the APR on purchases right away.
Final Thoughts on the Capital One® Spark® Classic for Business
The Capital One Spark Classic is a good starter business credit card. You use as a credit card for fair credit to build up your score. It is an easy, flat rewards card with 1 percent cash back. However, once you build your business credit score up, there are better business credit cards available. The Spark Business card’s minimal fees and relaxed credit restrictions are positive. However, the lower credit line and the lack of incentives hurt this card’s potential. If you use this card responsibly, it’s an excellent tool that you can use as a stepping stone. Once you’ve built your credit with it, move on to a better card.
Learn if the Capital One® Spark® Classic for Business is right for you by comparing it to other business credit card applications.
CreditFast has reviewed the best business credit cards on the market. Some of the credit card offers are from our advertising partners. CreditFast has objectively reviewed the features and benefits of each business credit card. We have chosen credit card offers based on our editor’s recommendations.