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This article was last updated Jun 22, 2020. Terms and conditions may have changed. For the most accurate information, please consult the issuer website.
Business owners with less-than-stellar credit can build credit history and earn cash back with the Capital One® Spark® Classic for Business. It’s a flat-rate, no-annual-fee card that’s worthy of consideration if you think you’ll struggle to qualify for other business credit cards.
We break down what the card offers, who it’s best for, and suggest another business card to consider.
- Capital One® Spark® Classic for Business pros
- Capital One® Spark® Classic for Business cons
- Compare it with the Wells Fargo Business Secured Credit Card
- Is the Capital One® Spark® Classic for Business right for you?
Capital One® Spark® Classic for Business pros
Easier to qualify for. While some business credit cards require good or excellent credit to be approved, the Capital One® Spark® Classic for Business is designed for business owners with fair/limited credit. Use it responsibly and in time, you can apply for a card with more lucrative rewards.
If you don’t know where your credit score stands, it’s wise to check it before applying. Note that both personal and business credit can be considered when applying for a small business card.
Ways to check your personal credit score for free include:
- By signing up for My LendingTree
- With the Discover Credit Scorecard
- Capital One’s CreditWise
- From the credit bureau Experian
You can check your business credit profile from the following sources, though you’ll have to pay:
- Dun & Bradstreet’s Credit Evaluator Plus ($61.99 for one report per company)
- Equifax’s Business Credit Report ($99.95 for a single report)
- Experian’s Business Credit Advantage ($189 annually)
Rewards. Cardholders earn 1% cash back on every purchase. Rewards don’t expire as long as the account is open, and there’s no cap on how much cash back you can earn.
Redemption options include:
- Statement credits
- Statements for previous purchases
- Gift cards
No annual fee. The Capital One® Spark® Classic for Business has an annual fee of $0.
No foreign transaction fee. If business requires you to travel abroad, don’t worry about paying a foreign transaction fee on each purchase – there is none.
Free employee cards. There’s no charge for extra cards to issue to your employees, and you’ll earn cash back on the purchases they make.
Spending summaries and downloadable records. Get year-end spending summaries (to help with budgeting and taxes) and download your purchase records in formats such as Quicken, Quickbooks and Excel.
Visa Business Card benefits, including:
- Purchase security. This covers eligible items against damage or theft for 90 days after purchase. Maximum coverage is $10,000 per claim and $50,000 per cardholder.
- Extended protection. Double the length of the original manufacturer’s warranty for up to one additional year on warranties of three years or less (up to $10,000 per claim).
- Auto rental collision damage waiver. Get primary coverage when renting for business purposes.
- Travel and emergency assistance. Need help getting connected with medical, legal and other services? This benefit is available 24/7. Note that while referrals are free, you’re responsible for any cost incurred when using a service.
*Certain restrictions, limitations and exclusions apply. For questions or assistance 24 hours a day, 365 days a year: call the toll-free number on the back of your Visa Business card.
Capital One® Spark® Classic for Business cons
Subpar rewards rate. For business owners with less-than-stellar credit, it’s a plus that this card offers rewards along with a chance to build credit history. However, those with good to excellent credit can do better than 1% cash back on every purchase. There are small business credit cards offering 2% back on every purchase or up to 5% in specific categories.
No sign-up bonus. While many business cards offer sign-up bonuses if you spend a certain amount within a set period of time from opening the account, this one does not.
Compare it with the Wells Fargo Business Secured Credit Card
Another card that’s good for building business credit history is the Wells Fargo Business Secured Credit Card. Here’s how it compares with the Capital One® Spark® Classic for Business:
Capital One® Spark® Classic for Business vs. Wells Fargo Business Secured Credit Card
|Capital One® Spark® Classic for Business||Wells Fargo Business Secured Credit Card|
|Annual fee||$0||$25 per card|
|Minimum deposit||No deposit.||$500|
|Credit needed||Applicants should have at least fair/limited credit.||Applicants should have at least poor or fair credit.|
|Rewards||1% cash back on every purchase.||.|
|Foreign transaction fee||None||$0|
|Regular purchase APR||26.99% (variable)|
The downside with a secured credit card is that you must submit a security deposit, typically in the amount you want for your credit limit, before the issuer will grant you the card. In the case of the Wells Fargo Business Secured Credit Card, you can deposit from $500 to $25,000.
Since the Capital One® Spark® Classic for Business is an unsecured card, you don’t have to put down a deposit.
However, if you think your approval odds for the Capital One® Spark® Classic for Business are low, a secured business card might be your only choice. The Wells Fargo Business Secured Credit Card is a good option for applicants with poor or fair credit.
Is the Capital One® Spark® Classic for Business right for you?
If you’re a business owner with fair/limited credit, the Capital One® Spark® Classic for Business could help you build up your credit profile with responsible usage. Keep in mind that, as with all credit card applications, a variety of factors are considered and approval is not guaranteed. For those with better credit scores, a card such as the Capital One Spark Cash Select - $500 Cash Bonus or the Capital One Spark Cash for Business will offer an opportunity to earn a higher cashback rewards rate on card purchases.