Looking for a small business credit card to track your expenses, get flexible funding, and earn killer rewards? The Capital One Spark business credit cards offer convenience and cash—music to any entrepreneur’s ears. But which one is right for you?
We’ll review each of the Capital One business credit cards to help you decide.
The Big Picture: Capital One Business Credit Cards
When you sign up for one of the Capital One business credit cards, you get value right off the bat. All four cards have no foreign transaction fees (great if you travel overseas), purchase and warranty protection, rental car insurance, and free employee cards (crucial if you’re putting five or six on the same account).
They also have no balance transfer fee, but since the Capital One business credit cards don’t have a 0% introductory balance transfer APR, they aren’t ideal for transferring existing debt.
Capital One business credit cards are simplicity personified: All four cards have flat-rate rewards with no rotating bonus categories, earning caps, or spending thresholds for ongoing rewards.
Plus, they either pay out in cash back or in Capital One miles, which can be used to offset any travel expense. Rewards are easy to earn and redeem, and while they may not have bells and whistles like many travel credit cards, they do have lower fees and fewer requirements.
Let’s break down the Spark Cash, Spark Miles, and Spark Classic.
Capital One Spark Cash
There are two versions of the Capital One Spark Cash: the regular Spark Cash, which has a higher rewards rate, and the Spark Cash Select, which has no annual fee. Here’s what you need to know about both of these Capital One business credit cards.
The Capital One Spark Cash earns 2% cash back on every purchase, period. No caps, no changing bonus categories, no fuss. It has a $59 annual fee—waived the first year—and offers a signup bonus of $500 when you spend $4,500 in the first three months.
The Capital One Spark Cash Select has no annual fee at all, and offers 1.5% cash back on every purchase. It, too, has a signup bonus: $200 when you spend $3,000 in the first three months.
Both of these Capital One business credit cards require excellent credit, so how do you decide if the annual fee is worth it?
Generally, you should get the Spark Cash if:
- You plan to hold the card for less than five years. The extra $300 of the Spark Cash’s signup bonus covers three years of the $59 annual fee, and since that fee is waived the first year, this is unquestionably the better choice if you hold the card for less than five years.
- You easily spend more than $3,000 a year. If you spend at least $2,950.75 every year, you’ll earn enough cash back to make up for the annual fee.
If you don’t meet either of those conditions, go with the Spark Cash Select.
Capital One Spark Miles
The Capital One Spark Miles and Spark Miles Select are twin versions of the Spark Cash and Spark Cash Select, except for one change: Instead of earning cash back, they earn Capital One miles, which can be redeemed against any travel expense.
You can use the Travel Purchase Eraser, which lets you redeem miles as a statement credit against anything coded as a travel expenses (including airfare, taxi rides, and hotels) at a rate of 1 cent per mile. That means 50,000 Capital One Miles are worth a $500 statement credit against travel expenses.
Alternatively, you can use Capital One’s travel booking tool—they partner with Orbitz to let you directly redeem miles for new trips, at a rate of 1 mile per $1. The downside of this method is that you can’t do a partial redemption—you have to have enough miles to cover the entire trip.
As for the cards themselves, the Capital One Spark Miles earns 2 miles on every $1 spent, and its $59 annual fee is waived the first year. It also offers a 50,000 mile bonus if you spend $4,500 in the first three months. The Spark Miles Select has no annual fee and earns 1.5 miles per $1 spent, and its signup bonus clocks in at 20,000 miles when you spend $3,000 in the first three months.
Like with the Spark Cash cards, the Spark Miles card is better if you either plan to hold the card for less than five years, or if you spend more than $3,000 a year.
Capital One Spark Classic
Both types of Capital One business credit cards—Spark Cash and Spark Miles cards—require excellent credit. If your business isn’t quite there, the Capital One Spark Classic is one of the best options out there for businesses with average credit.
It has no annual fee and no foreign transaction fee (rare among average credit cards) and earns a solid 1% cash back on every purchase. If you want a credit builder card that earns rewards and won’t gouge you with fees, this is your card.
Should You Get a Capital One Business Credit Card?
Whether you want cash back or miles, Capital One business credit cards stake their claim on simplicity.
There are no foreign transaction fees, and the annual fees are either quite low or nonexistent. Rewards are easy to earn and easy to redeem.
The downside? For some businesses, the cards may be too simple. You may be able to earn more rewards with a cash back card that gives bonus rewards in your biggest spending categories, or with a travel credit card that lets you redeem through high-value airline or hotel loyalty programs.
Speaking of travel—if you often find yourself flying or staying in hotels, you might prefer a card that gives you perks like airport lounge access or hotel elite status.
Get a Capital One business credit card if:
- You want a no-fuss, no-surprises business credit card.
- You hate having to juggle bonus categories or reward expiration dates.
- You have less-than-stellar credit and want to use the Spark Classic as a no-fee credit builder.
Skip the Capital One business credit cards if:
- You spend a lot on office supplies, gas, restaurants, or other common bonus categories (check out the American Express SimplyCash and the Chase Ink Cash).
- You usually fly on one airline (try the cards offered by your preferred airline, especially if you frequently check bags).
- You want great travel perks and don’t mind a higher annual fee (the American Express Business Platinum is among the best in that class).
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from Fundera Ledger https://www.fundera.com/blog/capital-one-business-credit-cards