Building a small business is hard work, and establishing business credit when you have none can be a chore, too. Luckily, the Capital One® Spark® Classic for Business (learn more) can help you do both.
This card only requires average credit to get approved and offers perks many business owners will find invaluable. Whether you’re just starting a business or looking for a good credit card solution for your employees, this card could have what you need.
No annual fee
Who should get this card?
The Capital One Spark Classic for Business is a useful option for small business owners with average or fair credit. It’s not going to bowl you over with high-level perks, but it does enough to stand out among other business credit cards for people with little to no credit.
There’s a $0 annual fee attached to this card, and it offers easy-to-understand cashback rewards with no special spending categories to memorize. You’ll earn an easy 1% unlimited cash back on every purchase for your business, including spending on employee cards.
There are also several tools that business owners might enjoy. This includes year-end summaries that provide itemized reports of company spending, which can come in handy at tax time. Payments are a breeze with the option to set your own due date and use automatic payment options. Business owners can earn even more rewards with free employee cards, with which you can set customized spending limits.
The Capital One Spark Classic for Business offers the perks, protections, and tools to help your small business thrive. If you’re looking for a business credit card with rewards and that helps you build your credit, Capital One’s Spark Classic could be a smart choice.
|Card Issuer||Capital One|
|Recommended Credit Score||Fair|
|Foreign Transaction Fee||None|
Top card benefits
- Easy-to-track rewards program: Cardholders earn a flat 1% unlimited cash back on every purchase for your business. While not the highest rewards rate on the market, there are no spending categories to track or complex point systems to learn.
- Increase your credit with responsible use: This card is available for business owners with average credit. By keeping your credit utilization low and making on-time, full monthly payments, business owners can use this card to build up a positive credit history.
- Free employee cards: Business owners can get free cards for any of their employees. You’ll earn rewards from all of their purchases and can set individual spending limits for each employee.
- $0 annual fee: Business owners can use the Capital One Spark Classic for Business to cover company expenses with no worries of an added annual fee.
- Travel perks: This isn’t a travel rewards card but offers some nice travel perks, including auto rental damage waiver (primary coverage) and travel and emergency assistance services. It’s nice to know you and your employees have extra protection when traveling.
Earning & redeeming
Capital One’s Spark Classic for Business keeps earning rewards simple. You earn 1% unlimited cash back on every purchase for your business. Unfortunately, there’s no early spend bonus or opportunity to earn extra rewards with this card.
Best ways to earn
Because of the flat rewards rate, the only way to boost your earnings is to simply use your card for as many business purchases as possible. This includes office or shop supplies, office equipment, fuel and travel expenses, and other business-related spending. If you make $15,000 in monthly purchases, you’d earn $1,800 in cash back annually.
Be mindful of your spending, though, so you don’t carry over a balance from month to month. If you do, you’ll get hit with interest charges thanks to the card’s relatively high APR (annual percentage rate) — and any interest costs you pay will eat into your net cashback rewards.
As you make responsible choices with your card, you’ll build better credit and eventually qualify for other credit cards that offer better rewards and perks.
Maximizing your redemptions
Because rewards are cash back, redemptions are simple with Capital One’s Spark Classic for Business. Cash back can be redeemed as a statement credit or a check. And there’s no minimum, so you can redeem anytime you want. This allows you to put cash back into your business.
Cardholders can also set up automatic redemptions, which can simplify rewards even more. You can either choose a set time each calendar year to automatically redeem your cash back or set a certain dollar threshold at which to redeem your rewards.
How do I redeem my Capital One Spark rewards?
Rewards are redeemed through Capital One’s website. Simply log into your account and you can choose to either get cash back as a statement credit or check. Cashback rewards never expire.
Does Capital One Spark Business report to credit bureaus?
Capital One reports to business credit bureaus. It may also report your information to consumer credit bureaus. As long as you’re paying bills on time and staying well below your credit limit, you should be able to positively build your business credit.
Can I prequalify for the Capital One Spark Business Classic card?
Capital One allows potential cardholders to see what credit cards they might qualify for if they apply. This is done on the Capital One website. Unfortunately, it only extends to personal credit cards, not business cards.
What is the credit limit on the Capital One Spark Business Classic?
Your credit limit is based on a review of your business credit card application and ability to pay bills. The minimum credit limit you’ll receive, if approved, is $500.
Other cards to consider
Another similar Capital One card to consider is the Capital One® Spark® Cash Select for Business, which also has a $0 annual fee. You’ll need excellent credit to qualify, but the perks are better than what you’d get with the Spark Classic. It comes with the chance to earn a $200 cash bonus after spending $3,000 in the first 3 months and earns up to 5X miles on all purchases. You’ll also receive a 0% APR on purchases for the first 9 months.
Business owners interested in cashback rewards and a hefty welcome bonus should also consider the Chase Ink Business Cash Card. You can earn $500 bonus cash back after spending $3,000 in the first 3 months.
Plus, get 5% cash back at office supply stores and on internet, cable, or phone services (up to $25,000 combined annually); 2% cash back at gas stations and restaurants (up to $25,000 combined annually); and 1% cash back on everything else. There’s a $0 annual fee, plus a 0% APR on purchases for the first 12 months.
No annual fee
No annual fee and unlimited cash back
See how these cards compare:
Capital One® Spark® Miles Select for Business
- 20,000 mile welcome offer
- Unlimited 1.5X miles on every purchase
- 0% intro APR on purchases for 9 months
- Free employee cards
Chase Ink Business Cash Credit Card
- $500 cash back sign-up bonus
- No annual fee
- 0% intro APR on purchases for 12 months
- Up to 5% cash back