What We Think of the Capital One Spark Classic for Business Card

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As a small business owner looking to expand their company line of credit, you want to find a company credit card that works for your small business. One solution to your small business credit card dilemma is the Capital One Spark Classic for Business. We’ve taken a look at some of the main features of this credit-building card for small business owners, and this is what we found.

Weighing the Costs

When choosing the right small business credit card to build your business credit, you should weigh the costs of card offerings to make sure they line up with your company needs and values. Here are just a few of the pros and cons of the Capital One Spark Classic for Business.

PROSCONS
No annual maintenance feesHigh interest rate makes this card less than ideal for carrying debt
Earn 1% cash back rewards on every business purchase, even on purchases from linked employee cardsLow credit limits can be difficult to increase over time, even with consistently prompt payments
Zero fraud liability for lost or stolen cards protects you from potential threats to your creditVariable APR increases with slow payments, but may be difficult to bring back down

Mobile App Features

With an intuitive and customizable UX design, the user-friendly mobile app for the Capital One small business credit card was ranked by J.D. Power as the “Highest in Customer Satisfaction Among Mobile Banking Apps” for the second year in a row. While some features of your account such as setting up new recurring payments are limited and app sign-in has a penchant for turning glitchy on you, instant purchase notifications and fraud protection alerts help you keep on top of your business credit. As far as reviews go, the Capital One mobile app received a stellar 4.7 out of 5 star rating for both Android (700.3k ratings) and Apple users (112.4k ratings).

Online Reviews

Reviews of the Capital One Spark Classic small business credit card are consistently positive, with 4.4 out of 5 stars from over 1,600 reviewers on the Capital One site. While ditching the annual fee can be a good thing on this otherwise decent card, common complaints center on the high APR and difficulty of increasing your credit line over time.

Who’s it For?

If you’re a small business owner with an fair credit score looking for a cashback rewards card for your business, the Capital One Spark Classic card might be for you. Business owners with higher scores or who anticipate a high monthly balance may want to look elsewhere for a credit card with a lower APR and better rewards.

Annual APR

APR for purchases and transfers25.24 %
APR for cash advances25.24 %
Penalty APR for late payments31.65 %

The variable APR for this small business credit card typically runs on the higher end. While certainly a great option for short-term credit for small business owners looking to avoid the high fees of short-term business loans, it’s probably not in the best interest of entrepreneurs looking for a debt-bearing card for longer-term purchases.

Annual Fees

The Capital One Spark Classic small business credit card has no annual fee, but prompt payments are essential. Slow payments can easily increase your variable APR, and penalties for paying late can range up to $39 a month.

Target FICO Scores

While many credit cards targeted towards small business owners require a credit score of over 700, the Capital One Spark Classic is more accessible to those with fairly average credit scores. The ideal credit score range recommended for this card is around 630-689, and takes into account both business and personal credit of entrepreneurs looking to open a new credit line.

Additional Features

The additional features of small business credit cards can be real selling points for your business. The Capital One Spark Classic card comes with the following Visa Business Benefits:

  • 24/7 emergency and travel assistance services
  • Purchase security to reimburse, replace, or repair eligible items within 90 days of purchase
  • Auto rental damage waiver of eligible car rentals

Conclusion

When it comes to choosing the right small business credit card for your company, the Capital One Spark Classic card is a big contender for entrepreneurs with fair credit scores. While the cashback rewards and lack of annual fee can be tempting to business owners with a penchant for prompt payments, the high variable APR makes this card less than ideal for longer-term debt. For more reviews of credit cards for business owners, see Revenued.com

 

 

Sources:

https://www.capitalone.com/small-business/credit-cards/spark-classic/

https://www.creditcardinsider.com/reviews/review-capital-one-spark-classic-business/

https://www.fundera.com/business-credit-cards/capital-one-spark/classic

https://www.jdpower.com/business/press-releases/jd-power-2018-us-banking-and-credit-card-app-satisfaction-studies

https://www.capitalone.com/credit-cards/reviews/?prodid=sparkclassic&mts_code=MTS::LQT5NROZR

https://wallethub.com/d/capital-one-spark-classic-89c/

https://www.nerdwallet.com/reviews/credit-cards/capital-one-spark-classic

https://www.capitalone.com/small-business/credit-cards/spark-classic/

https://www.revenued.com/

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