A cash back business card for those with fair credit.
30-second take
- Get this card if you’re looking for cash back on business expenses and have a fair credit score.
- Pick something else if you’re looking to pay balances on the card off slowly with a low APR.
- Apply for this card with a fair to excellent credit score of 625 or higher.
| Product Name | Spark® Classic for Business |
|---|---|
| Balance Transfer Rate (not intro) | 24.49% variable |
| APR for Purchases ( Purchase Rate ) | 24.49% variable |
| Annual fee | $0 |
| Cash Advance Rate | 24.49% variable |
| Card Type | Visa |
| Interest Free Period The interest-free period on purchases is the period or number of days you do not have to pay interest on your card purchases. You will be charged interest either from the day you make a purchase or from the statement date, unless you pay the closing balance in full by the due date (or within the interest-free period) on your statement. | Up to 25 days |
| Foreign Currency Conversion Fee (VISA) Foreign currency conversion fees are charged when you make a transaction that is converted by a credit card network, such as MasterCard, Visa or American Express, from Australian dollars to a foreign currency. You’ll also incur a currency conversion fee if you make a purchase or obtain a cash advance in Australian dollars while overseas or shopping online with a foreign merchant or financial institution. | 0% of transaction value |
| Minimum Credit Score | Poor (Below 660) |
|---|---|
| Minimum Age | 18 years of age |
| Annual fee | $0 |
|---|---|
| Late Payment Fee | $39 |
| Cash Advance Fee | $10 or 3% of the amount of each cash advance, whichever is greater |
The basics
Capital One Spark® Classic for Business proves that cashback cards aren’t only for businesses with excellent credit. You can earn 1% cash back on all business purchases with this card while paying $0 in annual and foreign transaction fees.
Unlimited cash back earnings and the chance to build credit are good features, but other cards in the Spark® suite may be better suited to your business. You may want to check out Capital One® Spark® Cash for Business for a higher cashback rate of 2%, or look into Spark® Miles for Business to earn airline miles for every dollar you spend.
The perks
Cash back.
Earn 1% cash back on all purchases. There’s no limit to the amount you can earn each year, and the rate doesn’t go down based on how much you’ve spent. Get your cash back as statement credit, a check, or you redeem it for credits for credit towards previous purchases, gift cards and more.
Build credit.
If you’ve defaulted on a loan in the past five years, or if you have a limited credit history, you can apply for this card. By paying your bills on time and managing your account responsibly, you may be able to work your way up to stronger rewards cards.
No annual fee.
You’ll pay an exceptionally low annual fee of $0 to own this card.
You’ll also like …
Visa® business benefits.
Since this is a Visa card, you also get benefits such as car rental insurance, purchase protection, access to 24/7 emergency services when you travel and more.
Free employee cards.
Employees can help you earn rewards for every business purchase.
Fraud alerts.
Capital One will notify you of any suspicious activity by phone, text or email. You have $0 liability in case your card is stolen.
0% foreign transaction fees.
Use your card overseas and for online international purchases without the worry of extra fees.
What to watch out for
High APRs for purchases and cash advances.
You’ll pay up to 24.49% variable APR on your purchases.
Avoid late payments.
Try to make your payments on time. You can incur late payment fees of up to $39, and if you’re late twice within 12 billing cycles Capital One may impose a penalty APR of 30.90. Penalty APRs stick around until you make at least the minimum payment on time for 12 consecutive billing periods.
No travel rewards.
If your business mostly spends on travel expenses that you’re looking to get extra rewards from, you may want to look at other cards.
Consider other cards if …
You’re looking for a travel card.
Consider the Spark® Miles Select for Business credit card to satisfy your travel reward needs. It has $0 annual fee, and you earn miles with every purchase made. As a bonus, it has a 0% intro APR on purchases for the first 9 months of your account being open, with an APR of 14.49%, 18.49% or 22.49% variable after that. Not bad if you’re looking to make a large initial purchase for your business.
You want higher cash back.
SimplyCash® Plus Business Credit Card from American Express is a $0 annual fee card that offers 5% cash back on wireless services and supply stores, 3% cash back on select categories and 1% on everything else. The 5% and 3% rates apply to up to $50,000 in purchases per year, and drop to 1% after that.It comes with an intro APR of 0% on purchases up to your credit limit for nine months, with an APR of 13.99%, 18.99% or 20.99% variable thereafter. If you spend $50,000 in a year, you can get up to $2,500 in cash back with the SimplyCash® Plus Business Credit Card from American Express. The Capital One Spark® Classic for Business will only earn you $500 on the same $50,000 spent per year.
You want an intro APR on purchases and balance transfers.
The Blue Business℠ Plus Credit Card from American Express offers one of the longest intro APR periods for purchases and balance transfers: for the first 15 months. After the promotional period the APR reverts to 12.99%, 16.99% or 20.99% variable. You’ll also get 2x membership points per dollar spent on purchases up to $50,000 per year, 1x thereafter.
Compare other Capital One credit cards
What size business is the Capital One Spark® Classic for Business good for?
The Capital One Spark® Classic for Business could be a good choice for small businesses that have limited credit histories, and for those that had credit difficulties in the past.
You’ll get a chance to build up your business credit while earning 1% cash back on all purchases. That’s up to $500 in cash back if your business spends $50,000 annually.
What should I know before I apply
- Business name and address
- Type of industry you’re in
- Ownership type and how long you’ve been in business
- Tax Identification Number
- Annual revenue and monthly expenses
- Full name and personal contact information
- Date of birth and Social Security number
- Annual income and monthly housing expenses
What credit score do I need?
The Capital One Spark® Classic for Business is designed for companies with poor credit or limited credit history. You can apply with a fair credit score of 625 or higher.
Be aware that Capital One pulls your credit history from TransUnion, Equifax and Experian, while other banks usually pull your credit from one credit bureau.
What’s my likelihood of approval?
You’ll have a chance of being approved for the Spark® Classic for Business card if you apply with a fair to excellent credit score of 625 or higher.
Always consider your options and your financial situation before you apply for a credit card.
What do customers say about the Capital One Spark® Classic for Business?
Many customer complaints revolve around the low credit limit received — some starting from just $500. Several claim it’s hard to increase their limit, even after years of paying on time, but that doesn’t seem to be the case with every customer.
Another complaint mentions the high APR. It should be noted that since this card is meant for companies with poor or with no credit history, the high APR is a trade-off.
The Better Business Bureau has accredited Capital One with a rating of A+.
How to apply for the Capital One Spark® Classic for Business
- Go to the Capital One website.
- Select the Capital One Spark® Classic for Business from the list of cards and click Apply now.
- Complete the application form with the required details about yourself and your company.
- Review your application and submit it.
How long will it take to be approved?
Capital One has automated conditional application approval on its website, meaning you may get a decision within minutes if the information provided is accurate. Applications that need further review may take several business days to be fully processed.
How long will it take to get my Capital One Spark® Classic for Business?
Upon approval, you’ll receive your card within 7 to 10 business days via mail.
I got the card. Now what?
- Set up automatic cashback rewards preference. Go to Capital One website or contact their rewards center at 1-800-228-3001. Set up when to receive your cashback rewards — each calendar year, or when you reach a specific threshold of $25, $50, $100 or $200.
- Avoid paying fees and interest. Make your payments on time to avoid late fees of up to $39. If you make two late payments within 12 months, you’ll incur a penalty APR of 30.90.
- Earn more with your employees. Earn more cash back by providing cards to your employees for business expenses.
- Contact customer service. Get in touch with Capital One by phone at 1-800-867-0904 or by signing in to your account.
Bottom line
The Capital One Spark® Classic for Business card can help you earn unlimited cash back while building credit and paying for your business. You may still want to take a look at other options from Capital One and explore other providers. Lower APRs and better rewards bonuses may be available, especially if you have a high credit score.
Frequently asked questions about Capital One Spark® Classic for Business
Images: capitalone.com
