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Review on the Capital One Spark Cash for Business

Capital One Spark Cash for Business

Is it the best option for those who want to get cash back on the sums spent on business?

Many small business owners try to organize the businesses they run so that they are flexible and reliable to some extent. It’s not a secret that one of the ways for you to achieve this goal depends on the credit card you choose. Today, we recommend you having a look at the Capital One® Spark® Cash for Business that seems to be quite beneficial for small businesses.

This card promises cash back on every purchase a cardholder makes and doesn’t charge any fees in case he/she needs to use it abroad. Besides, the annual fee that a cardholder is expected to pay is quite fair. This card also has a sign-up bonus for you in case you’re a new cardholder.

General overview of the card and our opinion

Capital One Spark Cash for Business

Capital One Spark Cash for Business

  • There applies no annual fee during the 1st year of using the card. After that, be ready to pay $95.
  • The card implies no additional charges for the purchases made by a cardholder abroad.
  • The rewards you earn will be given to you in the form of cash back.
  • It’s stated that new cardholders will be rewarded $500 if they manage to spend $4,500 during the first 3 months after they get the card.

Our opinion: The card is great for those who own a small business and want to have a straightforward card that offers relatively high rewards.

The card is great for the following categories of people:

  • People who prefer having simple cards with flexible rewards structure.
  • People who don’t have to go on business trips very often.
  • People who may need to make a purchase while on a business trip.

The card isn’t the best option for the following categories of people:

  • People who own a small business and need a long interest free period to pay off their purchases.
  • People who dislike the need to pay annual fee for the privilege of using a card.
  • People who need to go on business trips regularly.

Basic features of the card

First of all, we need to tell you some facts that have to do with the basic features of the card. After that, we’ll get to the perks that make it special for a potential cardholder.

  • Every new cardholder will get the sign-up bonus mentioned provided that he/she meets the requirements specified in the offer.
  • The card allows you to get 2% cash back for any kind of purchase you make with it. It means that you don’t have to bother with the so-called bonus categories.
  • There are no restrictions in terms of the sum you can get back as a cash back. Besides, all your rewards will stay with you for as long as your account is active.
  • The card comes with no additional charges to pay in case you decide to use it abroad.
  • The annual fee of $95 applies only starting from the 2nd

The reasons for you to consider applying for the card

It can be hard for a potential cardholder to come up with certain things that speak in favor of the card he/she is considering applying for. We make it easier for you. Below you’ll find the list of these perks:

  • The card offers a high effective rewards rate. Actually, it’s almost impossible to find a credit card that will give you a cash back of 2% on all the expenses that occur due to the business you run. As a rule, the majority of the cards you’ll find have a standard 1% cash back (that, again, applies to some certain categories of purchases). That’s one of the things that makes the card worth paying attention to.
  • The card offers a simple structure for earning rewards and redeeming them. The truth is that many of us are looking for a card that’s as simple as possible. This is especially important for a CEO who has a business to take care of. With this card you won’t have to bother with bonus categories and worrying about calculating the rewards you earn. You’ll simply be earning 2% cash back each time you use it. Besides, you’ll be free to redeem the rewards you have accumulated on your account whenever you want. There are no limits that have to do with the amount of rewards you’re allowed to redeem.

Some business owners prefer having the redemption process automatically carried out. This is also possible with this card. You can preset the balance that should be redeemed. Once you have this balance on your card, the redemption process will be carried out automatically.

  • The card implies no additional charges. It’s nice to be able not to worry about any additional charged to pay if you need to use your card abroad. With this card you can travel internationally and be sure that you can buy something you need without spending extra money.

Is the annual fee implied by the card worth it?

We believe the card is good for those who own a small business. Still, there is one little thing that you should remember about – being a cardholder, you’re required to pay $95 starting from the 2nd year of using the card. For some bosses this may not be a big deal. What we mean to say isn’t this. We want to draw your attention to the fact that the card has an alternative version – the Capital One® Spark® Cash Select for Business that also has no additional charges to pay when using it abroad, but comes with no annual fee at all. The only difference is a slightly lower cash back rate that amounts to 1.5%.

All in all, if you want to see if this card is better for you, we recommend you think of how much you spend on your business per year. The Capital One® Spark® Cash Select for Business turns out to be valuable if the sum of your business expenses per year amounts to at least $19,000. That is a low limit for those running a small business. We believe that you’ll easily manage to earn enough rewards to offset the annual fee especially considering the fact that the rewards rate is higher than in case of the majority of the cards at the market.

The reasons for you to consider applying for a different card and other cards that you may find to be more appealing

The card is great, but even great cards have their own drawbacks that may make you decide on getting a different card. Let’s see what are the “weakest sides” of the Capital One® Spark® Cash for Business.

  • There is no interest free period. Some business owners prefer having a credit card in their wallets that will let them make some big purchases and then gradually pay them off with no interest. Unfortunately, you don’t get this opportunity with this card issued by Capital One. Once you make a purchase, the APR of 17.99% applies.

Ink Business Cash Credit Card

If you’re the one looking for a long interest period that will allow you to pay off your purchases without any worries, you may consider the following option – the Ink Business Cash℠ Credit Card that goes with an interest free period of 12 months (applies to both your purchases and balance transfer operations. As for the rewards you can earn with this card, they are as follows:

  • 5% cash back for the purchases that have to do with your office supplies as well as telecom services (the limit is $25,000).
  • 2% cash back for the purchases made at restaurants and gas stations (the same limit applies).
  • 1% cash back for any other kind of purchase.

The card also promises a good sign-up bonus of $300 cash back for all the new cardholders who manage to spend at least $3,000 during the first 3 months of using their cards. Since there is no additional fee to pay each time you buy anything with the card abroad, you’re free to take it with yourself when travelling. We tend to think that this is a great option for you if your goal is to decrease the charges you pay due to your business expenses.

SimplyCash Plus Business Credit Card from American Express

  • The card has no bonus categories. Some business owners look for a simple rewards structure, while others are willing to take advantage of the rewards that they can earn for the purchases in bonus categories. If you’re one of those people, you’ll definitely find the SimplyCash® Plus Business Credit Card from American Express to be more appealing. The purchases you’ll make with this card will go under the following rewards rates: 5% cash back (when paying with the card for the US telephone services and buying office supplies at the US stores) and 1 % cash back for any other purchases except for the category you choose by yourself. The card gives you the right to choose one category for the purchases in which you’ll be rewarded 3% cash back. Do not forget that these high rewards rates apply for as long as you don’t exceed the limit of $50,000 in both of the categories. Once you exceed it, the cash back of 1% applies.

You can clearly see that the card gives you an opportunity to earn more rewards within a shorter period of time. For those who like getting sign-up bonuses, there is also something to expect. We are talking about the sign-up bonus of $200 statement credit that’s given to a cardholder in case he/she manages to spend $5,000 on qualifying purchases within the first 6 months. You’ll also qualify for an additional bonus ($200) if you manage to spend as much as $10,000 during the first year of using the card. Since this card implies no annual fee at all, the bonuses alone make it look quite attractive.

In the end, it’s up to you to decide. Of course, before applying for this card you’d better find out if you spend enough in the eligible categories so that the rewards you earn are really worth it. We simply recommend you studying the information about the card’s features thoroughly before coming up with the final decision.

  • The card has no travel perks to offer. If you run your business in different countries and you have to travel a lot because of that, you certainly need to look for some travel benefits in a credit card. Unfortunately, with this card you don’t get many of them. The only perk that’s promised is the absence of additional charges on the purchases made with the card abroad.

Summary: Is the Capital One® Spark® Cash for Business the best card for a small business owner?

We’ve come to the conclusion that the card is designed for those who look for a straightforward redemption and earning rewards structures as well as a fair sign-up bonus. If you need more travel perks or some other features that will allow you to organize your business processes in a bit different way, you’d better have a look at some other cards available at the market.

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Comments: 5
  1. Briana

    This is a very good card. I really like the fact that I can look through all of the transaction history. Quickbooks allows you to sort the history according to either fiscal or calendar year. very convenient. I can get my cash back in the form of a statement credit any time I want. I think this card is just what a small business with relatively small expenses needs.

  2. JHG

    Hello. I have a question that I hope someone can an answer. Will the credit score be decrease even if a cardholder pays off the balance on this card in full each month?

    1. Henry

      Hello there, JHG. The thing for you to remember with this card is that you should always pay the balance in full before there occurs any amount in your statement. In other words, you’re to pay the September sum in September etc.

      The thing is that if you start carrying any balance, it’ll have a very negative impact on your credit score. This card isn’t designed so that a cardholder can have a balance left and simply pay it off next month. I’m using this card currently and I’m trying to make sure that all the payments are made on time (sometimes I can pay earlier if I get such a chance).

      I think this is a very good card in terms of cash back, but it’s definitely not the financing tool.

  3. RichardF

    Thank you for the information provided about the card. I applied for it and was almost immediately approved with the credit line of $30,000. I’ll come back later with a more detailed feedback. For now, I just need some time to see the benefits of the card in practice.

  4. FFDastin

    I can’t say that the card is good. My company used the Bank of America card to pay off all the charges that occur due to the business. The limit on the card was high, but we always paid it off gradually. We’ve recently decided to switch to the Capitol One card. I now see that we made a mistake. We got the card and used it for 3 months. After that, I called the customer support service and asked them to increase our spending limit since the one provided wasn’t enough. They refused to do it saying that we should use the card for at least 6 months before asking for an increase.

    Okay. I can understand that. The thing I couldn’t understand is why they suddenly started to deny charges. When we got the card, we asked if it’d be possible to exceed the limit. The one that was offered to us wasn’t enough. We were told that the card wouldn’t charge us for exceeding the limit and that it was okay. When we faced the problem, I called the customer support service again. The explanation they gave to me was that we exceeded the limit and that there is nothing that could be done.

    Today I’ve received an e-mail from the bank in which it was stated that I shouldn’t call them anymore to ask for an increase of the credit line. They say the bank itself will decide if it should be increased. Awful. I don’t think the card can be useful for a business. You just can’t get the credit line you need, irrespective of the fact that you pay off your monthly bill with it.

    We are going to cancel this card and start using the Bank of America card again for some time.

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