Capital One Spark Classic For Business Review
If you’re a business owner with middling credit, you may have difficulty finding a good credit card for your business. That’s where the credit-building card Spark Classic for Business from Capital One comes in.
Essentially the littlest sibling in Capital One’s trio of Spark cash back cards, the Classic packs a big punch for those with fair credit. While its base 1% cash back program may seem unimpressive at first, Capital One specifically designed the Spark Classic to help users build credit. Because Capital One reports your activity to multiple credit bureaus—something not all cards do—you’ll be able to improve your credit score by consistently paying off your account.
This card is also bundled with minimal fees while featuring additional Capital One and Visa business benefits. The Spark Classic is truly a great option for those looking at upping that all-important credit score.
Is this card right for you? Find out by reading below.
Table of Contents
Capital One Spark Classic At A Glance
Capital One® Spark® Classic for Business
Capital One designed the Spark Classic for those above the age of 18 with fair or average credit. This means you’ll want to have a credit score of at least 580 before applying.
Not sure what your credit score is? Find out by visiting one of our favorite (and free!) credit score sites.
Rewards & Fees
Spark Classic Bonus Offer
The Capital One Spark Classic credit card comes with no bonus or welcome offers.
While this may seem disheartening at first, this is a good thing for those looking to improve their credit score. A welcome offer may encourage you to spend more than you’re able to pay off, only digging you deeper into debt (and potentially dropping your credit score lower). A card with no welcome offer—like the Spark Classic—means you can spend at your own rate with nothing enticing you to spend more.
However, high spenders with a good credit score may want to look at other options if they want to earn some cash via a welcome offer.
Spark Classic Ongoing Cash Back Rewards
Capital One bundles the Spark Classic for Business with an unlimited 1% cash back on all purchases.
This reward amount doesn’t stack up well against other cards, especially when you can find other offerings with over 2% cash back. However, the Spark Classic is aimed at those with fair or average credit. Because there aren’t many business credit card options for that bracket, 1% is actually a very generous offer.
The Spark Classic’s rewards program is also simplistic, meaning you won’t have to do mental gymnastics when it comes to calculating how much you’ll get back when you make a purchase. This can bring peace of mind, allowing you to focus on things that matter.
Rewards don’t expire for the duration that your account is open.
Spark Classic Introductory Period
Capital One Spark Classic, unfortunately, does not offer a 0% intro APR. However, as long as you pay off your balance each month, you won’t need to worry about potential interest.
Spark Classic APR
Because Spark Classic is designed for those with fair or average credit, its APR sits at a relatively high 25.24%. This rate is variable and will change depending on the current market rate. For this card, the APR applies to both purchases and balance transfers. The potential penalty APR for late payments comes in at a variable 31.65%.
Of course, if you completely pay your bill every month, you won’t have to worry about paying interest on your card—plus you’ll improve your credit score!
Spark Classic Fees
The Capital One Spark Classic for Business card has no annual fee. This is especially great since the cash back rewards are on the (somewhat) lackluster side.
Additionally, there are no fees on foreign transactions, which could be helpful if your business requires travel outside of the United States.
You also won’t have to pay a fee for a balance transfer. However, do note that Capital One does start charging interest from the date you transferred the balance.
In fact, the only standard fees Capital One charges on the Spark Classic for Business are for cash advances. For cash advances, the fee is 3% or a minimum of $10.
Rewards can be redeemed via statement credit or by check. Capital One also allows you to opt into an automatic redemption program so you don’t have to worry about remembering to redeem your rewards.
Capital One packs in several additional benefits for Spark Classic for Business card holders.
As part of the Capital One business benefits package, you’ll get quarterly and year-end summary reports to help with planning, budgeting, and doing taxes. You can also add an unlimited number of employee cards at no additional cost while still earning rewards from their purchases.
In addition, Capital One has partnered with Visa’s business benefits program. Benefits include a waiver for damage due to collision or theft when renting an eligible car with Spark Classic. This program further comes with purchase security and extended protection up to $10,000 per claim and $50,000 per cardholder. Purchase security covers eligible products against theft and damage for 90 days while doubling manufacturer warranties. Finally, Visa travel and emergency assistance services are available 24/7 when traveling for business.
How To Use Spark Classic To Build Credit
Because Capital One reports your activity on the Spark Classic to multiple credit agencies—something not every business card does—this card is perfect for building credit. Along with the other cards in the Spark line, Capital One reports activity to three business credit agencies: Dun & Bradstreet, Experian, and Equifax. Other business card companies may only report negative activity to personal credit agencies. Of course, you’ll still have to follow the best practices to your build credit.
These practices include only using 30% or less of your credit limit and diligently paying off your account on time. If you follow these goals, you’ll just need to be patient and, eventually, your credit score should rise.
Once you’ve built up to a strong credit score, you’ll then be able to upgrade from the Spark Classic to top-tier cards. These cards can offer better rewards, introductory APR periods, welcome offers, and more.
If you need more tips on improving your credit score, check out Merchant Maverick’s handy guide to upping your business credit score.
While not really standing up against some top-tier cards, Capital One has built a very respectable card for a specific audience. The Spark Classic is perfect for businesses wanting to improve their credit scores. Other business with higher credit scores may want to look elsewhere.
Is Capital One Spark Classic right for your business? You might want to apply for this card if:
- You have fair or average credit and are looking to boost your credit score.
- You are able to pay off your balance every month (avoiding Spark Classic’s high APR).
- You have other employees who might need credit cards.
- Your business requires travel outside of the United States regularly.
On the other hand, you might want to pass if:
- You have a higher-than-average credit score and are eligible for cards with better rewards.
- You will be unable to regularly pay off the card’s monthly balance. Spark Classic comes with a high APR and failing to consistently pay your balance could drop your credit score.
To learn more about how we score our reviews, see our Business Credit Card Rating Criteria.