Capital One® Spark® Classic for Business review – USA TODAY Blueprint

Pay no annual fee and earn 1% back while you build credit.

About the Capital One® Spark® Classic for Business

Most of the best small business credit cards require good or excellent credit, but if you have a limited credit history or have defaulted on a loan in the past few years, you may be able to get approved for the Capital One® Spark® Classic for Business.

The card offers a flat 1% cash back on every purchase, which isn’t great, and its APR is high. But it also charges no annual fee, and you can use it to build both your business and personal credit histories. That also means irresponsible use could hurt your personal credit, so you’ll need to be mindful of how you use the card. 

Capital One Spark Classic for Business basics

• Annual fee: $0.
• Welcome bonus: None.
• Rewards: 5% cash back on hotels and rental cars booked through Capital One Travel and 1% back on all other purchases.
• Regular APR: 29.74% variable.
• Other perks and benefits: Purchase record exporting, virtual card numbers.
• Does the issuer offer a pre-approval tool? No. 
• Recommended credit score: Limited, fair.

Capital One Spark Classic for Business rewards

The Capital One Spark Classic for Business isn’t a heavy hitter when it comes to rewards, but if your credit isn’t in stellar shape, the card’s 1% rewards rate on everything is decent. Additionally, if you use the card to book hotels and rental cars through Capital One Travel, you’ll get an impressive 5% cash back on those purchases.

You can redeem your cash back in the form of a general statement credit or a paper check and can set up automatic redemptions at a specific time each year or once you’ve reached a certain threshold. Alternatively, you can redeem your rewards as a credit toward a specific purchase, to buy gift cards and more.

Capital One Spark Classic for Business rewards potential

The amount you earn depends on how much your small business spends. For a business that spends $2,000 per month, for instance, that’s $20 per month in cash back and $240 per year. 

If you also spend $1,000 each year on hotel stays and rental cars and book through Capital One Travel, you’ll earn $50 on those transactions.

Capital One Spark Classic for Business APR

Having limited or fair credit means that your affordable financing options are limited. With the Capital One Spark Classic for Business, your APR will be a variable 29.74%, which is on the high end for business credit cards. 

To give you an idea of how much that might cost should you carry a balance, take this example: Say you owe $2,000 on your credit card and you make $100 monthly payments to repay it. It will take 13 months to fully repay your balance and you’ll pay over $360 in interest. 

The good news is that if you pay your balance in full each month, you’ll never have to pay a dime in interest.

Capital One Spark Classic for Business pros

• Accessible to people with fair or limited credit: Capital One specifies that you may qualify for the card if you have a credit history that’s less than three years old or if you’ve defaulted on a loan in the past five years.
• Can build personal credit: Capital One states that it may report your account balance and payment history to the consumer credit bureaus. In other words, maintaining a relatively low balance and making on-time payments can help build both your business and personal credit scores.
• No annual or foreign transaction fees: You’ll enjoy no annual fee as you work to build your credit history, and if you take the card abroad, you also won’t pay any fees on international transactions.

Capital One Spark Classic for Business cons

• Low base rewards rate: You’ll only earn 1% cash back on the vast majority of your purchases, which isn’t much.
• No welcome incentives: The card doesn’t offer a welcome bonus or an introductory 0% APR promotion. What’s more, the ongoing APR is high.
• Could hurt personal credit: Most business credit card issuers don’t report your account activity to the consumer credit bureaus. But if you maintain a high balance or miss a payment on this one, it could damage your personal credit scores.

How the Capital One Spark Classic compares to other small business credit cards

Capital One Spark Classic for Business vs. Capital on Tap Business Credit Card

If your small business has at least $30,000 in gross revenue, you may be eligible for the Capital on Tap Card. The card’s issuer will run just a soft credit check when you apply, so you don’t have to worry about wasting a hard inquiry if you’re declined. The card offers a flat 1.5% cash back on every purchase you make and no annual fees. APRs range from 9.99% to 34.99% variable. 

Capital One Spark Classic for Business vs. Ramp Business Card

The Ramp Business Card is a corporate credit card that doesn’t require a personal credit check or a personal guarantee when you apply. You’ll get 1.5% cash back on all of your purchases, and the card doesn’t charge any fees whatsoever. However, some of the other eligibility requirements are a bit steep. You’ll need to have at least $75,000 in your business bank account and be registered as a corporation, limited liability company or limited partnership.

Capital One Spark Classic for Business vs. FNBO Business Edition® Secured Mastercard® Credit Card

If your credit score is poor, you can’t qualify for other options, and you live in a geographic location served by FNBO bank, you may consider the FNBO Business Edition® Secured Mastercard® Credit Card. The security deposit starts at $2,200 and is 110% of the credit limit you’ll receive. The card also charges a $39 annual fee and has a variable 24.99% APR. Be aware that the bank’s limited footprint in just a handful of states means if you don’t live in an eligible area, you won’t be eligible to apply.

Should you get the Capital One Spark Classic for Business?

If you have limited or fair credit, your options for a business credit card are extremely limited. While there are better options out there, they may have high revenue and cash reserve requirements, which can be tough to meet if you’re just starting out or you’re not registered as a corporation, LLC or partnership.

With that in mind, the Capital One Spark Classic for Business can be a solid choice for many small business owners who don’t have the credit required for better options. The lack of an annual fee is also a big selling point. Just make sure that you use the card responsibly to avoid damage to your personal credit history.

Capital One Spark Classic for Business summary