This is one of the few business credit cards that work well for new, small businesses. It's also great for new business owners with limited to average credit. However, it's important to use the Spark Classic wisely. It has high interest, average fees, low rewards, and a few other disadvantages.
Still, when it comes down to it, getting a business credit card can be difficult for many new business owners, especially if their personal credit scores are on the average-to-low side. What the Spark Classic card falls short on in benefits it may make up for in opportunity. To find out if this applies to your specific situation, the following full Capital One Spark Classic review should be helpful.
To be the perfect candidate for the Capital One Spark Classic, a few things need to be true. First, you should have average-range personal credit. This means a credit score right around 600, give or take 50 points.
Beyond personal credit, this getmyoffer.capitalone.com card works best if you have a new business with little to no established credit. This is the kind of credit card to help you establish credit. It has an overall low credit line and high interest. You should use, pay it off, and watch your credit improve for the best results.
The Spark Classic is also difficult to negotiate with. This means you're more or less stuck with the interest rate initially assigned to your account after you go to getmyoffer.capitalone.com and upgrades are few and far between in not impossible for most. In short, if you need to establish business credit, this is a card to consider. If you already have good established business credit, you may find a better offer elsewhere.
The APR rate for purchases and cash advances with the Capital One Spark Classic Business Credit Card is 26.99% for all customers. This number will vary a little with the Prime Rate, but typically not more than 4% in either direction. This is a bit high for a business credit card, but perfectly acceptable given how low their credit score and credit history requirements are for this card.
There is Penalty APR that applies if you make a late payment. This Penalty APR may apply for a minimum period of 3 to 6 months or indefinitely, depending on the creditworthiness assigned to your account and if any additional late payments are made. The Penalty APR rate for the Capital One Spark Classic Business credit card is 29.4%. Again, this APR will vary with the Prime Rate.
The overall credit line maximum is not stated. However, many customers report that the credit line does max out at a relatively low level. This is not surprising given that the Spark Classic is a sort of “beginner” business credit card, all things considered. The beginning credit line for most applicants is set at a minimum of $500.
- Annual Fee – There is no annual fee for the Spark Classic Business Card.
- Cash Advance Fee – The cash advance fee for the Spark Classic Business Card is the greater of $10 or 3% of the total cash advance.
- Foreign Transaction Fee – The Spark Classic Business Card has no foreign transaction fee.
- Late Payment Fee – The Spark Classic Business Card has a late fee of up to $39. What you are charged, specifically, will depend on the nature of the transaction and if you have had other recent missed or late payments.
- Authorized User Fees – There are no authorized user fees for the Spark Classic Business Card. This includes cards for employees with restricted permissions.
- Balance Transfer Fee – There is no balance transfer fee for the Spark Classic Business Card as balance transfers are not allowed to this business credit card.
There is a reward rate of 1% for the Capital One Spark Classic Business Credit Card. This means 1% cash back is awarded for every eligible purchase. There are few exclusions to this offer. Rewards are typically not eligible for transfer between business and personal credit cards.
There is no limit to the number of rewards you can earn. Cash back never expires as long as your account remains open and in good standing. There is no threshold for redemption. Cash back can be redeemed as a direct deposit or statement credit in most cases. Automatic redemption at certain thresholds may also be set.
The Spark Classic Business Card from getmyoffer.capitalone.com offers many advantages to a small business that needs to build up credit.
- 1% Cash Back – All eligible purchases made with the Spark Classic Business Card earn 1% cash back.
- Fraud Coverage – There is Zero Liability fraud coverage provided with the Spark Classic Business Card.
- No Redemption Limits or Thresholds – There are no redemption limits on cash back and no minimum threshold that needs to be met for redemption.
- Average Credit Scores Accepted – The Spark Classic is a great starter business credit card or annual-fee-free card for very small businesses.
- No Foreign Transaction Fees – There are no foreign transaction fees to the main account user or any authorized users or employees.
- Purchase Records with Accounting Software Integration – Purchases can be categorized and coded to synchronize with a variety of accounting software. Downloads may also be provided in simple Excel format.
- No Annual Fee – It won't cost anything to keep the Spark Classic Business Card, even after you have upgraded to a better business credit card.
There are a few small things to keep in mind before applying for the Spark Classic Business Card.
- Customer Service and Negotiation – The customer service aspect of the Spark Business Credit Card is lacking. Not only are wait times lengthy, but many negotiations that would work with a personal card are flat-out denied.
- Low Potential Credit Line – With a guaranteed minimum of $500, the Spark Classic Business Card reportedly has a relatively low cap on all credit lines. However, as a business credit-building tool, this may not be such a bad thing.
For any small business just starting out, or any business looking to build up their credit profile, the Capital One Spark Classic Business Credit Card is a solid choice. It offers a basic rewards program, a simple fee schedule, and a $500 minimum line of credit. These are reasons to respond timely to getmyoffer.capitalone.com to gain access to the card.
However, for those with established business credit, these benefits are not nearly what you could be getting. There is only a 25 day grace period and high interest overall. These may be acceptable terms for a responsible business owner just starting out with business credit, but if you have established business credit it will be worth your time to look up other business credit cards.
This is also not a business credit card to grow with. The credit line you are offered will stop growing relatively quickly and the APR is non-negotiable. However, the lack of an annual fee or foreign transaction fee can make this a decent card to have in your company's credit portfolio and one that doesn't cost anything to keep around.