Spark Classic From Capital One Review

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If you’re a business owner with mediocre credit, you might think you’re not eligible for a decent business credit card. However, this may not be the case. Enter the credit-building card Spark Classic from Capital One.

Essentially the most basic of Capital One’s triumvirate of Spark cash back cards (along with Spark Cash and Spark Cash Select), the Spark Classic nonetheless packs a big punch for those with fair credit. While the card’s base 1% cash back seems underwhelming at first, Capital One specifically designed the Spark 1% Classic to help users build credit. Because Capital One reports your activity to multiple credit bureaus — something not all credit cards do — you can improve your credit score by consistently paying off your account.

This business card also has minimal fees and additional business benefits from Visa and Capital One. The Spark Classic is truly a great option for those looking to boost that crucial credit score.

Is this the business credit card for you? Keep reading our review to find out.

Spark Classic From Capital One At A Glance

Eligibility

Capital One designed the Spark Classic for those 18 or older with fair or average credit. Per its website, Capital One considers you to have fair credit if you’ve met the following conditions:

• Defaulted on a loan in the past five years, OR
• Have limited credit history of three years or less

It also means that you should probably have a credit score of at least 580 before applying. Note that this number is just a recommendation; Capital One does not require a minimum credit score.

If you don’t know your credit score, find out by visiting one of our favorite (and free!) credit score sites.

Rewards For Spending

Spark Classic features a very basic rewards scheme that’s easy to understand. No need to pull out the old TI-84 calculator!

Unlimited 1% Cash Back On All Purchases

You’ll get 1% cash back on every purchase you make with this card. Many other credit cards on the market offer better and more numerous rewards, so 1% cash back seems a bit paltry in comparison. However, because the Spark Classic is geared toward consumers with fair credit, receiving rewards of any kind is a bonus. Many credit-building cards and secured credit cards don’t offer rewards at all.

Once you’ve successfully boosted your credit by using the Spark 1% Classic wisely, you’ll be able to graduate to credit cards that offer higher rewards rates for your spending.

Redeeming Rewards

With the Spark 1% Classic, you’ll probably want to redeem your rewards for cash back. However, there are a few other ways Capital One can reward your spending.

Earn Rewards As Cash Back

Because Capital One markets Spark Classic as a cash back card, you can, of course, redeem rewards for cash back. You’ll be able to redeem rewards at your convenience as a statement credit or check.

You can also select an automatic redemption trigger option, which can be set through Capital One’s online port or by contacting the rewards center. Available options include a specific time each calendar year or when a spending threshold (such as $25, $100, or $500) has been reached.

Multiple Redemption Options

Besides cash back, you can choose from several other redemption methods. Available options include credits for previous purchases, gift cards, and more. Note that different types of rewards might be worth a bit less (or more) than straight cash back.

Rewards Don’t Expire

Rewards you earn with the Spark Classic won’t disappear as long as your account is active. Your account may also be eligible to transfer rewards, but not all accounts/reward products are eligible for transfer. Note that you’ll lose any unredeemed rewards if you close your account.

Card Benefits

All Capital One business cards come with some core benefits and Visa Business benefits. Both programs offer a solid range of coverage and include perks aimed at travel and shopping — even though this card isn’t specifically designed for those purposes.

Free Employee Cards

Capital One offers something for all its bits of plastic that should be standard with every business credit card: Employee cards can be given out for free. With employee cards, you’ll be able to earn rewards every time an employee uses their card. You can also set up spending rates and view transactions made with employee cards as soon as they have been posted.

Fraud Coverage & Alerts

If your account is used fraudulently or suspiciously, Capital One will notify you via email, text message, or phone alerts.

You’ll also be covered by $0 fraud liability. This liability protects you when your card goes missing or gets stolen, and someone places unauthorized charges on your card.

You can further lock employee cards if one becomes lost or gets stolen.

Account & Business Management

Capital One offers a few account management tools. You can select your monthly due date, set up automatic payments, and get an itemized year-end report summarizing your annual spending.

Other features of note include a recurring transaction list that displays subscriptions, bills, or other repeating payments charged to your card. On top of this is access to a range of transaction details when available, such as merchant addresses, logos, phone numbers, and maps.

Finally, you can download purchase records into multiple formats, including Quicken, QuickBooks, and Excel.

Visa Business Benefits

There are a few perks filed under the Visa Business benefits program. Topping these benefits is purchase security and extended protection. With this benefit, Visa will repair or reimburse eligible items within 90 days of purchase. Some items may also qualify to have their warranty doubled (up to one additional year).

A few more perks come with Visa’s benefits package, including a worldwide 24/7 emergency car replacement service and an auto damage waiver that covers against collision- or theft-related damage on eligible rental cars.

Other Benefits

Your Spark Classic card will also come with a few other benefits. These include:

• Rental collision coverage
• Travel assistance
• Roadside assistance
• Online/mobile app account access
• Eno, Capital One’s 24/7 virtual assistant

Rates & Fees

You won’t have to deal with annual or foreign transaction fees with this card. However, keep in mind that there is a relatively high APR — plus, you won’t get a 0% introductory rate either.

A Higher-Than-Average APR

With an APR of 26.99% (variable), the Spark Classic has a higher interest rate than many cards on the market. That’s likely because Capital One markets the card toward potentially riskier applicants.

Of course, you won’t have to worry about an APR if you pay off your balance every month. That’s especially crucial if you’re working on improving your credit score — carrying a balance could negatively impact your score down the line.

No Annual Fee

Despite the high APR, this card has no annual fee. This is especially handy because your rewards will start making you money right away — you don’t need to offset an annual fee as you might with a different card.

No Foreign Transaction Fees

While the Spark Classic isn’t a travel credit card, it still lacks foreign transaction fees. This is a staple of Capital One cards, and it could make this card worth it if you don’t qualify for a travel-specific card.

Other Fees

On top of no annual fee, Capital One bundles this card with no balance transfer fees. However, there is a fee for cash advances of $10 or 3% of each cash advance, whichever is higher.

Is Spark Classic From Capital One Right For You?

You might want to apply if:

• You have fair or average credit and are looking to boost your credit score
• You can pay off your balance every month (avoiding Spark Classic’s high APR)
• You have employees who may need a credit card
• Your business requires travel outside of the United States regularly

You might want to look for a different card if:

• You have good-to-excellent credit and are eligible for cards with better rewards
• You will be unable to pay off the card’s monthly balance regularly and won’t avoid the card’s high APR; failing to pay your balance consistently could also drop your credit score

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