Capital One® Spark® Classic for Business Review 2019

Capital One® Spark® Classic for Business is best for business owners who want to build both personal and business credit and who also want to earn rewards. This Capital One business credit card charges no annual fee and pays 1% cash back on all spending. It has an ongoing variable APR of 24.74%.

The best fair credit business credit cards that offer cash back pay up to 1% on every purchase, as this one does. We give this card 4.5 out of 5 stars. This is an excellent choice for owners with fair credit, although it shouldn’t be compared with credit cards designed for people with good credit. Any card that requires good to excellent credit that we’ve given 4 stars or higher is a superior card.

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How We Evaluated Capital One® Spark® Classic for Business

Capital One® Spark® Classic for Business is one of the few business credit cards for fair credit that doesn’t charge monthly or annual card fees. In addition to its cost, we also considered any introductory bonuses, ongoing rewards, and additional card features. Although this card offers no introductory rewards, it does provide 1% cash back on all spending.

We considered the following criteria in our review:

• Annual fee: How much it costs to own the card every year. Capital One® Spark® Classic for Business has no annual fee.
• Ongoing APR: How much it will cost to finance purchases on your card. Capital One® Spark® Classic for Business has a variable ongoing APR of 24.74%.
• Ongoing rewards: The rewards you’ll earn when you use Capital One® Spark® Classic for Business. This Capital One business credit card offers unlimited 1% cash back.
• Introductory rewards: The introductory offer you can earn by reaching a minimum spending requirement. Capital One® Spark® Classic for Business does not have an introductory reward.
• Introductory APR: Whether the card has an introductory 0% APR period. Capital One® Spark® Classic for Business does not offer an interest-free financing period.
• Additional benefits: Whether the card has additional card benefits and perks. Capital One® Spark® Classic for Business offers card perks including extended warranty protection, purchase protection, rental car insurance, and emergency assistance services.

The typical business credit card carries an average ongoing APR of 17%, which is much lower than this card. However, compared to other fair credit business credit cards, the ongoing APR on this Capital One business credit card is around the average. For example, Capital One® QuicksilverOne® Cash Rewards, a personal credit card for business use, has an ongoing variable APR of 26.46%.

How We Evaluate Fair Credit Business Credit Cards

When grading business credit cards for fair credit like Capital One® Spark® Classic for Business, we weight the annual fee and ongoing APRs the heaviest. We also consider the card’s rewards, security deposit, introductory APR, and any other fees. This card lacks introductory rewards and an introductory 0% APR period.

We graded Capital One® Spark® Classic for Business using the following methodology:

Based on our 5-star rating system where 20 points equals one star, Capital One® Spark® Classic for Business would need to improve its introductory rewards and APR to earn 5 stars. In cases where cards receive perfect scores in most categories, we may award bonus points to boost the card’s rating.

There are other small business credit cards for fair credit that offer better ongoing rewards and charge a lower ongoing APR. The Wells Fargo Business Secured Credit Card, for example, pays unlimited 1.5% cash back on all purchases. Plus, it has a variable ongoing APR of 17.40%. That card is also a secured business credit card, which means your credit limit will be equal to your cash deposit.

Who Capital One® Spark® Classic for Business Is Right For

Capital One® Spark® Classic for Business is best for business owners who have personal credit scores between 580 and 669 and want to earn rewards. This small business credit card is an excellent way to build your personal and business credit with an unsecured credit card. If you want to receive similar features, including controlling employee spending, and avoid a credit check, consider Bento for Business Prepaid Card.

Alternatives to Capital One® Spark® Classic for Business

Compared to Capital One® Spark® Classic for Business, other business credit cards for fair credit offer introductory 0% APR periods, cheaper ongoing financing, and better rewards. You can even find cards that don’t require a credit check, which are secured credit cards.

Three alternatives to Capital One® Spark® Classic for Business are:

Wells Fargo Business Secured Credit Card

The Wells Fargo Business Secured Credit Card is best for business owners who want a secured credit card that offers a higher credit limit compared to other cards. With this Wells Fargo business credit card, your credit limit is equal to a collateral deposit between $500 and $25,000. Additionally, this card offers cheap financing for business owners with fair credit. You can learn more about how this card can help you build your credit in our in-depth Wells Fargo Business Secured Credit Card review.

Bento for Business Prepaid Card

The Bento for Business Prepaid Card is best for business owners looking for an option that has fewer qualifications than traditional small business credit cards. We believe this is one of the best business prepaid cards because you’ll receive your first two cards free, and it requires no credit check. This card is ideal for businesses that need up to two cards. You can learn more about this card’s features and pricing in our Bento for Business review.

BBVA Compass Visa® Business Rewards Credit Card

The BBVA Compass Visa® Business Rewards credit card is best for businesses that operate in one of seven southern and western U.S. states. It’s one of the few business credit cards for fair credit that offers an introductory 0% APR period on purchases. This card is available to owners in the following states: Alabama, Arizona, California, Colorado, Florida, New Mexico, and Texas.

Capital One® Spark® Classic for Business Costs

Capital One® Spark® Classic for Business is a business credit card with no annual fee. It charges a variable APR of 24.74%, which is average for business credit cards for fair credit. If you have fair credit, you will only have access to business credit cards with higher APRs.

Financing costs and fees on this Capital One business credit card include:

• Introductory APR: None
• Ongoing APR: 24.74% variable, which adjusts with the prime rate
• Annual fee: None
• Balance transfer fee: None
• Foreign transaction fee: None
• Cash advance fee: $10 or 3%, whichever is greater (cash advance APR is 24.74% variable)
• Late payment fee: Up to $39
• Returned payment fee: None
• Penalty APR: 31.15% variable, which is applied if you make a late payment

Capital One® Spark® Classic for Business lacks an introductory 0% APR period. If you’re looking to finance a balance transfer, a balance transfer business credit card would be a better choice. Those cards offer introductory 0% APR periods up to 12 months on purchases and balance transfers. However, business owners with fair credit are likely to not qualify for 0% APR business credit cards.

How to Avoid Paying Interest on Capital One® Spark® Classic for Business

Capital One will not charge you interest on new purchases, as long as you have paid your previous balance in full by the due date each month. The Capital One® Spark® Classic for Business has a due date 25 days from the close of each billing cycle. This payment period is identical to what’s offered when compared to other business credit cards for new businesses, including the American Express SimplyCash® Plus credit card.

Capital One® Spark® Classic for Business Rewards

Capital One® Spark® Classic for Business offers no introductory rewards. You will receive ongoing rewards of 1% cash back on all spending. There are other business credit cards for fair credit that offer a better rewards structure, such as the Wells Fargo Business Secured Credit Card (1.5% cash back). This is a secured credit card, which means your credit limit is equal to your cash deposit.

Introductory Rewards

Capital One® Spark® Classic for Business does not offer any introductory rewards, which is common among most business credit cards for fair credit. However, there are a few that do offer introductory rewards. For example, the BBVA Compass Visa® Business Rewards Card offers 20,000 CompassPoints when you spend $3,000 within the first 90 days. However, that card is not available nationally.

Ongoing Rewards

Capital One® Spark® Classic for Business offers the following ongoing cash back rewards:

• 1% cash back on all purchases

Capital One® Spark® Classic for Business ongoing rewards fall short of other business credit cards for fair credit. The Wells Fargo Business Secured Credit Card, for example, pays unlimited 1.5% cash back on every dollar you spend. That card also has a rewards point option, which pays one point for all purchases. Plus, you’ll receive an additional 1,000 bonus points when your company spends $1,000 or more in a month.

Rewards Restrictions

Capital One® Spark® Classic for Business won’t give rewards for the following:

• Interest charges
• Cash advances
• Traveler’s checks
• Purchases or reloading of prepaid credit cards
• Purchases of gift cards
• Person-to-person payments
• Any cash equivalents

Capital One rewards won’t expire as long as your account remains open. If you close your account, you’ll lose any rewards you did not redeem. Rewards restrictions are common across all business credit cards.

How You Can Redeem Your Rewards

There are four primary ways to redeem your rewards:

• Statement credit or check: Receive your rewards in the form of a statement credit or a check by mail.
• Redeem for purchases: Redeem your rewards for a recent purchase made on your Capital One business credit card.
• Redeem for gift cards: Redeem your rewards for gift cards at restaurants, retailers, or hotels. It takes two to three weeks for your gift card to arrive.
• Automatic redemption: Receive your rewards at a set time each calendar year or when you meet a specific threshold ($25, $50, $100, $200, $500 or $1,500).

Most cash back business credit cards offer similar rewards redemption methods, such as receiving them as a statement credit or a check. There are some credit card issuers that have more ways you can redeem rewards, such as American Express. That issuer gives you the option to redeem your rewards for charges, travel, gift cards, Amazon purchases, event tickets, and for some taxis in New York City.

Capital One® Spark® Classic for Business Additional Features

Capital One’s website shows that Capital One® Spark® Classic for Business comes with several additional card perks, such as fraud protection and insurance. Once you’re approved, you’ll either receive Visa® Signature Business Benefits or Visa® Business Benefits. We spoke to Capital One, and it wouldn’t disclose the factors that determine this.

We address Visa® Signature Business Benefits, which include travel accident insurance, lost baggage reimbursement, and price protection plan in addition to all Visa® Business Benefits.

The additional features included in Visa® Business Benefits are:

• Purchase security
• Extended warranty protection
• Auto collision damage waiver
• Travel and emergency services

The additional features included in Visa® Signature Business Benefits are:

• Purchase security
• Extended warranty protection
• Travel accident insurance
• Lost luggage reimbursement
• Auto collision damage waiver
• Travel and emergency services
• Price protection plan

These features are similar when compared to other credit card issuers, such as Chase Bank, American Express, and Bank of America. Card perks like these can be worth thousands of dollars per year if you and your employees travel frequently.

Price Protection Plan

According to Capital One’s website, this is only available through Visa® Signature Business Benefits. The Visa® Signature Business Benefits guide states you can receive a price difference refund if you see a purchased item at a lower price in another store’s printed advertisement within 60 days of purchase. Coverage is limited to $500 per item and up to $2,500 per account. This feature is unique to Capital One business credit cards.

Purchase Security

According to Capital One’s website, Capital One® Spark® Classic for Business covers purchased items against theft or damage within the first 90 days from purchase. Additionally, Capital One will replace, repair, or reimburse you up to the original purchasing price. Capital One’s benefits guide states that this coverage is capped at $10,000 per claim and $50,000 per cardholder.

What’s Covered with Capital One® Spark® Classic for Business Purchase Protection

Purchase security covers items that have been stolen or damaged within 90 days of purchase. Other business credit cards offer more coverage. For example, the American Express SimplyCash® Plus credit card offers purchase security for the first 120 days after purchase. However, business owners with fair credit may have trouble qualifying for this card.

What Capital One® Spark® Classic for Business Purchase Protection Excludes

Purchase protection does not cover the following types of purchases:

• Animals and living plants
• Antiques or collectible items
• Boats, aircraft, automobiles, and any other motorized vehicles and their motors, equipment, or accessories, including trailers
• Computer software
• Items purchased for resale
• Items that are lost
• Items under the care and control of a common carrier
• Jewelry and watches stored in your baggage
• Theft or damage resulting from abuse, fraud, or hostilities of any kind
• Theft or damage resulting from misdelivery or voluntary parting with property
• Medical equipment
• Perishables or consumables

Business credit cards that offer purchase security generally exclude the same types of purchases.

Extended Warranty Protection

According to Capital One’s website, Capital One offers extended warranty protection on original manufacturers’ warranties of three years or less. It will double the length of the warranty up to an additional one year. Capital One’s benefits guide states that coverage is limited to $10,000 per claim and $50,000 per account.

What’s Covered with Capital One® Spark® Classic for Business Extended Warranty Protection

Capital One® Spark® Classic for Business extended warranty protection covers warranties of three years or less. This window of coverage is identical when compared to other small business credit cards. For example, Chase Ink Business Cash^SM also offers extended warranty protection on warranties of three years or less. However, fair credit business owners may not qualify.

What Capital One® Spark® Classic for Business Extended Warranty Protection Excludes

The following purchases are not covered by extended warranty protection:

• Boats, automobiles, aircraft, and any other motorized vehicles and their motors, equipment, or accessories
• Any costs other than those specifically covered under the terms of the original manufacturer’s written U.S. repair warranty, as supplied by the original manufacturer, or other eligible warranty
• Items purchased for resale
• Computer software
• Medical equipment
• Real estate and items which are intended to become part of real estate including
• Rented or leased items, or items purchased on an installment plan
• Used or pre-owned items

Excluded items here are typically the same when compared with small business credit cards that offer this protection.

Travel Accident Insurance

According to Capital One’s website, you’ll receive travel accident insurance if you’re approved for Visa® Signature Business Benefits. Capital One’s benefits guide states you’ll have coverage up to $250,000 for you, your spouse, and unmarried dependent children. You must pay for your trip using your Capital One business credit card.

What’s Covered with Capital One® Spark® Classic for Business Travel Accident Insurance

Capital One® Spark® Classic for Business travel accident insurance covers accidental loss of life, limb, sight, speech or hearing while riding as a passenger in, entering or exiting any licensed common carrier. As stated in the benefits guide, coverage is capped at $250,000. Other startup business credit cards offer less coverage, including the American Express Blue Business℠ Plus credit card. That card only offers coverage up to $100,000. However, fair credit owners may not qualify.

What Capital One® Spark® Classic for Business Travel Accident Insurance Excludes

Travel accident insurance doesn’t cover loss resulting from:

• Emotional trauma, mental or physical illness, disease, pregnancy, childbirth or miscarriage, bacterial or viral infection, or bodily malfunctions
• Suicide, attempted suicide or intentionally self-inflicted injuries
• Declared or undeclared war, but war does not include acts of terrorism
• Travel between the insured person’s residence and regular place of employment

These excluded items are common when compared to other small business credit cards that offer similar insurance.

Lost Baggage Reimbursement

According to Capital One’s website, Capital One lost baggage reimbursement is only available through Visa® Signature Business Benefits. In the Visa® Signature Business Benefits guide, it states that your checked or carry-on baggage is protected against theft or misdirection by the common carrier. Coverage is limited to $3,000 ($2,000 for New York residents).

What’s Covered with Capital One® Spark® Classic for Business Lost Baggage Reimbursement

Capital One lost baggage reimbursement covers the value of your checked luggage or carry-on baggage up to $3,000 per trip. If you’re a New York resident, your coverage is capped at $2,000. Other business credit cards for fair credit don’t offer lost baggage reimbursement, including the Wells Fargo Business Secured Credit Card. That card is a secured credit card, which means your credit limit is equal to your cash deposit.

What Capital One® Spark® Classic for Business Lost Baggage Reimbursement Excludes

The following items are not covered by the baggage insurance plan:

• Automobiles, automobile accessories and/or equipment; motorcycles, motors, bicycles (except when checked with the common carrier), boats, or other vehicles or conveyances
• Contact lenses, eyeglasses, sunglasses, hearing aids, artificial teeth, dental bridges, and prosthetic limbs
• Money, securities, credit or debit cards, checks, and traveler’s checks
• Tickets, documents, keys, coins, deeds, bullion, stamps, perishables, consumables, perfume, cosmetics, rugs and carpets, animals, cameras, sporting equipment, and household furniture
• Property shipped as freight or shipped prior to the trip departure date
• Items specifically identified or described in and insured under any other insurance policy
• Losses arising from confiscation or expropriation by any government or public authority or detention by customs or other officials
• Losses resulting from abuse, fraud, or hostilities of any kind
• Business Items, cellular telephones, or art objects

Excluded items here are common across small business credit cards that offer baggage insurance.

Auto Rental Collision Damage Waiver

According to Capital One’s website, you’ll receive an auto rental collision damage waiver in case of damage due to collision or theft. This insurance acts as primary coverage when the rental car is used for business purposes. This means you won’t need to accept the rental company’s insurance or use your own personal coverage. Capital One’s benefits guide states you may be reimbursed up to the cash value of the car.

What’s Covered with Capital One® Spark® Classic for Business Auto Rental Collision Damage Waiver

Capital One’s auto rental collision damage waiver covers car rental agreements of 31 consecutive days or less. Additionally, it covers losses due to theft or collision that happen when the authorized driver is driving. There are other business credit cards that may put a monetary cap on the coverage. For example, most American Express business credit cards limit car rental insurance to $50,000.

What Capital One® Spark® Classic for Business Auto Rental Collision Damage Waiver Excludes

The following auto rental collision damage waiver coverage limits apply:

• Expensive, exotic, and antique automobiles
• Certain vans
• Vehicles that have an open cargo bed
• Trucks, motorcycles, mopeds, and motorbikes
• Limousines and recreational vehicles
• Wear and tear, gradual deterioration, or mechanical breakdown
• Any violation of the rental agreement
• Loss or theft of personal belonging
• Confiscation by authorities
• Rental periods that exceed 31 consecutive days
• Leases or mini leases
• Theft or damage reported more than 45 days from the date of the incident

These excluded items are similar when compared to other business credit cards that offer primary car rental insurance.

Travel and Emergency Assistance Services

According to Capital One’s website, Capital One provides travel, emergency, medical, and legal assistance 24 hours a day to the cardholder, immediate family members, and any employees. The number is free to call, but you’re responsible for the cost of any goods or services provided.

Services Capital One® Spark® Classic for Business Provides

This card offers the following travel and emergency services

• Deliver urgent messages
• Transportation assistance home or to the nearest medical facility
• Ticket replacement
• Translation service
• Lost luggage locator service
• Pre-trip help

This card offers the following medical and legal services

• Medical referral assistance
• Medical prescription assistance
• Referrals for English-speaking attorneys and U.S. embassies

There are a handful of small business credit cards that offer a similar service. For example, both Chase business credit cards and American Express business credit cards have an emergency assistance hotline. However, Chase doesn’t provide referrals for English-speaking attorneys and U.S. embassies.

Adding Capital One® Spark® Classic for Business Employee Cards

You can issue unlimited Capital One® Spark® Classic for Business employee cards at no additional cost. Most business credit cards offer free employee cards, even when the primary card carries an annual fee. Employee cards provide a handy way to get company funds in the hands of your employees. They also allow you to monitor and control employee spending.

If you need to facilitate business-to-business (B2B) purchases of goods and services, a purchasing card would be a good alternative to a traditional credit card. Purchasing cards are designed for businesses that want to issue employee cards to purchase goods and services instead of using other payment methods, such as checks or ACH transactions.

What Capital One® Spark® Classic for Business is Missing

Capital One® Spark® Classic for Business has a high ongoing APR and low ongoing rewards compared to small business credit cards for owners with good to excellent personal credit scores (670 or more). However, we believe this card is the best business credit card for fair credit. It’s a perfect card to use to build your credit until you qualify for a card that has a lower APR and stronger rewards.

Capital One® Spark® Classic for Business Reviews

Capital One® Spark® Classic for Business reviews are mostly positive. Users say they especially enjoy that they can earn cash back rewards, even if their personal credit scores are low. Some users complain about the card’s low credit limits. Credit limits on Capital One® Spark® Classic for Business start as low as $500.

How to Apply for Capital One® Spark® Classic for Business

You can apply for Capital One® Spark® Classic for Business online. To get a business credit card, you must provide your basic business and personal information. Usually, you will receive a decision right away. If not, you’ll receive more details in an email or letter within seven to 10 business days. Once approved, you’ll receive your card within seven to 10 business days.

How to Log In to Your Capital One® Spark® Classic for Business Account

You can log in to your Capital One account online with your username and password. If you have any problems, you can contact customer service through the phone number on the back of your credit card.

Other Capital One Business Credit Cards

Capital One offers four other business credit cards, which are designed for business owners with personal credit scores above 670. You may want to consider one of these cards if you want to redeem miles for travel, interest-free financing, or receive an introductory bonus offer.

The other Capital One business credit cards are:

• Capital One® Spark Cash® for Business: Best for business owners who don’t want to track category bonus and want 2% fixed-rate rewards. This card is similar to Capital One® Spark Miles® for Business, besides the form of rewards. This card’s annual fee is waived over the first year.
• Capital One® Spark Miles® for Business: Best for business owners who want to earn a fixed-rate of 2 miles to redeem for travel. This card’s annual fee is waived over the first year.
• Capital One® Spark® Cash Select for Business: Best for business owners who want no annual fee and fixed-rate 1.5% cash back rewards. The return rate is lower when compared to cards with annual fees. You’ll also have access to an introductory 0% APR period on purchases.
• Capital One® Spark® Miles Select for Business: Best for business owners who want to earn 1.5 miles to redeem for travel and pay no annual fee. This card also offers interest-free financing. However, it pays a lower return rate compared to cards with annual fees.

Bottom Line

Capital One® Spark® Classic for Business is best for business owners who want to build their personal and business credit while earning cash back rewards. This card pays unlimited 1% cash back on all spending and charges no annual fee. You can apply online in a matter of minutes.

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