Managing personal and business finances is a daily activity, which is why when we get comfortable with a bank or using a credit card or an app, we keep going back to them. It’s the ease of use and familiarity that saves us effort and time. If you are banking with Capital One then getting a credit card for your business from them would be on your mind.
If you are not banking with Capital One but are searching for a good business credit card then do stay on this page.
This is a three-part series:
- First, we are going to review the Capital One® Spark® Classic for Business credit card.
- In the second half, we will walk you through the pros and cons of Capital One® Spark® Miles for Business credit card.
- The third half is going to be the exploration of Capital One® Spark® Cash for Business credit card.
Let’s begin by looking into the Capital One® Spark® Classic for Business
In our search, we have found that most business cards have an eligibility requirement which is a good credit score. Whereas, if you have an average credit score you can get a Capital One® Spark® Classic for Business. This is a huge plus point if you are starting and don’t have a business credit history to rely on.
Benefits of Capital One® Spark® Classic for Business
You can earn 1% cashback on all your business purchases. There are no limits on how much cash back you can accumulate, neither restrictions like spending limit or category. You can have an automatic redemption set-up when you reach a certain dollar amount such as $25, $50 or $100 wherein you can get your rewards in the form of a check or a statement credit.
Visa SavingsEdge: You can get extra benefits by enrolling your business card in the Visa SavingsEdge program. Through this you can get discounts on dining, travel, business solutions, and more.
You do not need to pay out of your pocket for keeping the Spark Classic card for business. This is a no annual fee credit card.
Additional Employee Card
If you would like to let an employee make business purchases on your behalf, then an additional employee card is helpful. You can get an additional card at no extra cost. All the transactions made on the additional card will be visible to you and purchases can be accounted for easily.
Assistance with Account Management
Knowledge of how money moves are essential to the success of a business. You can get an itemized spending report on a quarterly or yearly basis to keep track of your budget and to plan forward. Recurring expenses such as bills and transactions can be viewed separately for analysis.
Your purchase records can be downloaded in different formats such as Quicken, QuickBooks, and Excel.
You can set-up AutoPay for recurring transactions. You can also pick your monthly due date based on your business requirements.
The Capital One app provides you with control on the usage of your card. You can lock it instantly if it is misplaced, damaged or you want to limit its use.
VISA Business card benefits
Capital One® Spark® Classic for Business is on a Visa network is accepted widely and has add-on benefits which are offered by Visa.
Purchase Security: If a purchase is paid for entirely using a Business Visa card such as a Spark Classic then you can be eligible for purchase security coverage. You get up to 90 days of coverage against damage or theft beginning from the date of purchase.
Extended Protection: You get up to one year of additional warranty coverage on warranties of three years or less, on eligible items.
Auto Rental CDW coverage: Your rental vehicle is covered against damage or theft when you have paid for the complete rental using your business Visa card. The rental period must not be more than 31 consecutive days or else the coverage won’t apply. Certain vehicles such as antique cars, vans, motorbikes, and trucks are not covered as part of this benefit.
Travel and Emergency Assistance Services benefits information: You can get connected to local emergency and assistance service 24/7, throughout the year by calling 1800-VISA-911. Medical and legal referral assistance, emergency ticket replacement and lost luggage locator service are few of the services which can be availed but the cost for using these services are to be paid by the cardholder. The benefit provides referrals to the cardholder.
Shortcomings of Capital One® Spark® Classic for Business
The Spark Classic for business doesn’t have a joining bonus or introductory APR offer. The variable APR is 25.24% and the late payment fees can go up to $39. The penalty APR rates can also be applied in case of late payment. It is not advisable to carry forward a balance on this card due to its high APR percentage.
Besides, there is also a cash advance fee of either $10 or 3% of the amount of each cash advance, whichever is greater. Spark Classic for Business is a card for small business, but the transaction history is reported to consumer credit bureaus and not business bureaus.
Note: When applying for this card Capital One may pull a hard enquiry on your credit.
Why is this card worth applying?
If you want to build personal credit while building your business, then Capital One® Spark® Classic for Business is a good pick. It’s an uncomplicated card to start with, where you are required to make payments on time. Over a period you can become eligible to upgrade to higher business cards such as Capital One® Spark® Miles for Business and
Capital One® Spark® Cash for Business.
To check out the second part of this series on Capital One® Spark® Miles for Business you may click here.