| Last updated on March 6th, 2024
Capital One® Spark® Classic for Business
Capital One® Spark® Classic for Business
Capital One® Spark® Classic for Business
- 30.49% variable based on the Prime Rate Regular Purchase APR
- 30.49% variable based on the Prime Rate Balance Transfer APR
- 30.49% variable based on the Prime Rate Cash Advance APR
At a Glance
With 1% cash back for every purchase and no annual fee, the Spark® Classic from Capital One® credit card is a straightforward option that businesses can use to start building their credit. Free employee cards and numerous account management options are also beneficial features of the Spark® Classic from Capital One® for those with average credit that get approved.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- Earn unlimited 1% cash back for your business on every purchase, everywhere, no limits or category restrictions
- $0 Fraud Liability if your card is lost or stolen, and get real-time alerts of fraud attempts via text, email, or phone
- Free employee cards, which also earn unlimited 1% cash back on all purchases
- No annual fee
- No foreign transaction fees
- Regular Purchase APR: 30.49% variable based on the Prime Rate
- Balance Transfer APR: 30.49% variable based on the Prime Rate
- Cash Advance APR: 30.49% variable based on the Prime Rate
- Cash Advance Transaction Fee: Either $10 or 3% of the amount of each cash advance, whichever is greater
- Penalty APR: 34.4% variable based on the Prime Rate
- Late Payment Penalty Fee: Up to $39
- You want to earn 1% cash back on all purchases, every day, without having to worry about complicated categories
- You have average credit and want to boost your rating by displaying responsible spending habits
- You do not want to pay annual fees or foreign transaction fees
In-Depth Review: Capital One® Spark® Classic for Business Credit Card
The Capital One® Spark® Classic for Business Credit Card is a versatile tool for small business owners looking to manage their finances and earn rewards.
Who Can Benefit from the Spark Classic Card?
The Capital One® Spark® Classic for Business Credit Card is designed specifically for small businesses, offering a range of features and benefits tailored to their needs. One of the key advantages of this credit card is its simplicity and accessibility. Unlike many other business credit cards, the Capital One® Spark® Classic does not require an excellent credit score for approval, making it a viable option for businesses that are just starting out or have less-than-perfect credit.
How to Get the Card
Credit Needed
To be eligible for the Capital One® Spark® Classic for Business Credit Card, your business will need to have at least a fair credit score, typically ranging from 580 to 669. This makes it an accessible option for businesses that may not meet the stringent requirements of other business credit cards.
Application Process
The application process is straightforward and can be completed online. You must provide basic information about your business, such as its legal structure, annual revenue, and number of employees. Capital One will also ask for your personal information, including your Social Security Number and income. Once you submit your application, the approval process is usually quick, and you can expect to receive a decision within a few business days.
Business Benefits
The Capital One® Spark® Classic for Business Credit Card has many features and benefits that can help small businesses manage their finances effectively. These features provide companies with the essentials required to manage their card spending, including:
- Choose your due date: Capital One allows businesses to pick their own monthly due date. This feature allows companies (and account managers) to ensure the Spark Classic due date works for their business, not the other way around.
- Autopay: The automatic payments system streamlines account management even further. Managers can quickly set up autopay and ensure the monthly payment is made without logging into the card account.
- Recurring transactions: Quickly view a list of merchants that charge your business card monthly like subscriptions and bills to get an eagle-eyed view of where your company is spending the money ahead of time.
- Year-end summaries: Get an itemized report of your spending to simplify budgeting and tax time. This feature further streamlines the bookkeeping process saving you time, money, and headaches.
- Account integrations: The card also comes with easy-to-use accounting tools –download purchase records quickly in Quicken®, QuickBooks™, and Excel® for seamless bookkeeping.
Vendor Pay
A unique feature of Capital One business cards is the Vendor Pay feature. With Vendor Pay, you can use your Capital One Spark business card to pay any vendor bill without any headaches. Typically, credit cards can’t be used to pay some bills, including rent, mortgages, and utilities. However, Vendor Pay lets companies use their card for any bill with a 2.9% transaction fee.
Complimentary Employee Cards
Finally, additional employee cards are complimentary with the Capital One® Spark® Classic for Business Credit Card. This is a particularly good feature for companies planning to issue several cards given the basic cash back rewards on offer.
How to Earn Rewards
One of the standout features is the ability to earn unlimited 1% cash back on all purchases, which can add to significant savings over time. Even better, there are limits to the total rewards businesses can earn. Points never expire while the account is open.
How to Redeem Rewards
Cash back through the Spark® Cash Select is redeemable through the Capital One Rewards program. The program offers solid value for money and offers several different award options. These options include statement credits, charitable donations, merchandise, gift cards, or travel through the Capital One Travel portal.
Other Card Benefits
Other features of the Capital One® Spark® Classic for Business include:
- No annual fee
- No foreign transaction fees
- EMV chip and pin technology for contactless payments
- Mobile wallet compatibility
- 24/7 Capital One customer service access
Comparison
| Revenued Business Card Visa® | Ramp Card | Capital One® Spark® Classic for Business | |
|---|---|---|---|
| Credit needed | None | Fair | Fair |
| Annual fee | $0 | $0 | $0 |
| Card features | FlexLine credit line, no draw fee | Spend/vendor controls, no FTX fee | Vendor Pay, no FTX fee |
| Rewards | N/A | 1.5% back | 1% back |
Tips for Building Business Credit
| ① Don’t treat business credit like free money | Credit cards can seem like free money to spend, especially when those purchases aren’t automatically deducted from your company’s bank account immediately. Because credit cards can seem like “invisible money”, you should always treat credit lines as you would you own physical funds. Only spend what you can afford to pay off either right away, or easily with a strict payment plan. |
| ② Make more than just the minimum payment | Making the minimum monthly payment due on your credit card can seem like a good idea, but it can result in quickly accumulating significant credit card balances. Always try to pay off the full balance owed every month. |
| ③ Work with partners that report to credit bureaus | Building credit requires working with partners who report credit and financial details to the major reporting bureaus. Some lenders, including SmartBiz and Fundbox, do not report to credit agencies and won’t build your business credit. |
| ④ Monitor your credit reports | Businesses have credit reports just like consumers. Business credit reports in the United States are typically generated by Dun & Bradstreet, Experian, and Equifax. |
| ⑤ Keep your information current | When you monitor your business credit, always make sure to check if your company’s information is up to date. Check to ensure contact information is accurate, there are no unknown trade lines, or other incorrect information. |
What We Like About the Card
Build Credit with Responsible Usage
Building credit can be tricky. This reality is especially true for businesses. With those difficulties in mind, Capital One’s Spark Classic Card gives companies the purchasing power they want and the credit-building capability they need. Capital One regularly reports to the major credit bureaus.
Basic Rewards
The Spark Classic not only helps build credit. The card also earns rewards with every purchase. The reward rate – 1% back on all purchases – isn’t exceptional but is a nice perk.
Things to Consider
Basic Rewards
One drawback is that no bonus categories are available for earning higher cash back rates. This means that the cash back rate remains the same regardless of the type of purchase.
High APR
Because the Spark® Classic for Business is designed for average credit scores, it has a less-than-impressive purchase APR. This rate is significantly higher than the national average for businesses and is fixed, meaning boosting your business credit score won’t lower your interest charges. Be careful when carrying a balance as the costs could quickly spiral.
Capital One Ratings
How does the Capital One rate as a lender? Here is a selection of expert reviews for Capital One and its business credit card products:
| BestCards | Better Business Bureau | TrustPilot |
|
4.5/5 |
2.5/5 |
2.5/5 |
Should You Apply for the Capital One® Spark® Classic for Business Card?
The Capital One Spark® Classic Card is the ideal credit card for businesses looking to build credit and earn rewards. The card’s fixed-rate APR isn’t exceptional, but it serves as a launching point for another Capital One Spark card in the future.
Learning an unlimited 1% is a nice feature—especially since there are no limits to the number of rewards earnable. Free employee cards further bolster this perk at no additional cost. Throw in some Visa purchase and fraud protection and Capital One business tools, and you have a winner of a business card for no annual fee.
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