The Spark® Classic from Capital One® is designed for business owners with a spotty credit history, or who are just starting out.
If your credit is strong and you’re looking for better rewards on a Capital One credit card, you may want to try the Spark Cash Select instead.
Who is the Capital One Spark Classic card for?
If you compare small business credit cards, the Spark Classic doesn’t offer a lot of the perks you’d find elsewhere.
Instead, it excels at offering a way for business owners to establish a solid credit history.
This makes it an option for startups or entrepreneurs who have struggled with financial problems in the past.
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Capital One Spark Classic Review of Benefits
Most small business credit cards require good, or even excellent credit.
The Spark Classic is a lot less stringent on this requirement.
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If a small business owner has been declined for other cards, the Spark Classic provides them with a chance to begin establishing their creditworthiness:
No Annual Fee with Capital One Spark Classic
Many business credit cards charge an annual fee and the costs can really drag your business down.
The Spark Classic doesn’t charge any annual fee, so that’s a huge perk in itself!
Unlimited Cash Back
Earn unlimited 1% cash back on all purchases, which can be redeemed as either a statement credit or a check.
No Foreign Transaction Fees
The Spark Classic from Capital One is great for traveling overseas, especially since many other business cards impose fees on foreign purchases.
While this small business credit card may not come with a lot of extras, the unlimited cash back feature makes it one of the best small business credit cards for the less-established entrepreneur.
Capital One Spark Classic Review of Drawbacks
Because it’s a card geared toward small businesses with fair to no credit, the Spark Classic is truly a no-frills card.
It offers a good path to establishing a strong credit history, but it doesn’t come with a lot of the extra features common to many other business credit cards.
Some of the biggest drawbacks for business owners who are considering the Spark Classic include:
No Special Introductory Incentives with this Business Credit Card
Unlike many other business cards, the Spark Classic does not have a promotional 0% APR when you open your account.
So you’ll be paying interest from day one, and it doesn’t offer any type of signup bonus either.
Prepare for Low Spending Limits with Spark Classic
Because this card is targeted to businesses with less-than-ideal credit, the credit limit can be quite low initially, with some cardholders approved for as little as $500.
Still, even a card with a low spending limit can be useful for credit-building purposes.
Relatively High APR Compared to Other Small Business Credit Cards
The APR for purchases and transfers is 24.49%, which is high for a business card.
As we mentioned earlier, there is no 0% introductory rate, so this APR will go into effect immediately.
If you aren’t able to pay off your balance monthly beware of the Capital One Spark Classic, the interest charges will add up fast.
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Final Thoughts on the Capital One Spark Classic
The Spark Classic may not be the best choice for every company…
If you are an established small business owner with good credit, you may want to look elsewhere for a business credit card.
However, if you are trying to repair your credit and increase your business cash flow, the Spark Classic is still a solid option.
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