Capital One Spark Classic Business Card Review: Credit-Building Option for Small Business Owners

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Capital One® Spark® Classic for Business
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Capital One® Spark® Classic for Business
Editor’s Score: (N/A)
Learn more externa link icon At our partner’s secure site.
Capital One® Spark® Classic for Business
Editor’s Score: (N/A)
  • Intro offer:
    N/A
  • Annual fee:
    $0
  • Regular APR:
    26.99% (Variable)
  • Recommended credit score:
    (No Credit History)
Rewards rate:

Earn unlimited 1% cash back for your business on every purchase, everywhere, no limits or category restrictions.

NextAdvisor’s Take

Pros
  • Available to business owners with fair credit scores
  • No annual fee and no foreign transaction fees
  • Free employee cards
Cons
  • No welcome offer
  • High APR if you carry a balance
  • Minimal cardholder perks
  • Does not allow balance transfers
The Bottom Line
The Capital One Spark Classic Business Card lets business owners with imperfect credit or limited credit history earn rewards with no annual fee. Consider this card if you want the chance to build credit while earning 1% cash back on business purchases.

Additional Card Details

  • Available for business owners with fair credit
  • Perks for businesses including end-of-year reporting, free employee cards, and the ability to set spending limits for individual employees
  • Roadside assistance and extended warranties
  • Choose your monthly due date
  • Purchase records for download to software like Quicken or QuickBooks

Capital One Spark 1% Classic Business Card Full Review

Card Type

The Capital One Spark Classic Business Card* is a business credit card. Unlike many business rewards options, you may qualify with a fair credit score or limited credit history.

Annual Fee

There’s no annual fee to carry this card.

Welcome Offer

The Capital One Spark Classic Business card has no welcome offer of any kind.

Introductory Offer

There’s no introductory APR for purchases or balance transfers upon approval.

Rewards

The Capital One Spark Classic Business Card offers a flat, unlimited 1% cash back on all purchases. This is better than some credit-building cards with no rewards, but 1% is a pretty meager rewards rate compared to other business rewards options.

When you’re ready to redeem your rewards, you can receive cash back in the form of a statement credit or check.

Fees

This business credit card comes with no annual fee and no foreign transaction fees. Fees to watch out for include a 3% (minimum $10) cash advance fee and a $39 late fee if you pay your bill after its due date. If you make a late payment, you may also take on a penalty APR up to 29.4%.

Other Benefits

This business card doesn’t have a ton of perks, but you will get access to end-of-year spending summaries and free employee cards, and you may set spending limits for individual employees. There are a few protections you can qualify for too, including roadside assistance and extended warranties on eligible items that come with a manufacturer’s warranty.

Benefits of Capital One Spark 1% Classic Business Card

If you’re a business owner, but a lack of credit history or fair credit score prevents you from qualifying for the best business credit cards, the Capital One Spark Classic Business Card is a nice starter card. The 1% rewards rate is lower than many competing cards offer, but you can still earn cash back while you build credit for the future. Considering this card doesn’t charge an annual fee, that’s a pretty good deal. 

Drawbacks of Capital One Spark 1% Classic Business Card

The biggest downside of the Capital One Spark Classic Business Card is the incredibly high APR you’ll pay if you carry a balance. With a variable APR of 26.99%, everything you buy will become considerably more expensive if you don’t pay your balance in full each month. 

Also be aware that this card doesn’t have a welcome offer or a lot of added perks. While other business cards may offer more robust benefits, this is pretty typical among credit cards for bad credit or fair credit.

How to Use Capital One Spark 1% Classic Business Card

There’s no welcome offer or intro APR with this card, so the best way to begin maximizing your spending is simply by using your Spark Classic Business card for all your business purchases to earn 1% back.

This credit-building card can also be a great way to establish the habits that will help you maintain a good score long term. Have a plan to pay your balances in full and on time each month. Create a budget for your business spending so you don’t spend more than you can afford to pay off when your statement is due. Not only will this help you avoid this card’s very high ongoing APR, but can build your credit over time so you can move up to a business card with better rewards and perks. 

Capital One Spark 1% Classic Business Card Compared to Other Cards

Our Choice
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Capital One® Spark® Classic for Business

Capital One® Spark® Classic for Business

Editor’s Score: (N/A)
  • Intro offer:
    N/A
  • Annual fee:
    $0
  • Regular APR:
    26.99% (Variable)
  • Recommended credit:
    (No Credit History)
  • Learn more externa link icon At our partner’s secure site
Learn More externa link icon
Capital One Spark Cash Plus

Capital One Spark Cash Plus

Editor’s Score: (N/A)
  • Intro offer:
    Up to $1,000 cash bonus
  • Annual fee:
    $150
  • Regular APR:
    N/A
  • Recommended credit:
    670-850 (Good to Excellent)
  • Learn more externa link icon At our partner’s secure site
Learn More externa link icon
Ink Business Cash® Credit Card

Ink Business Cash® Credit Card

Editor’s Score: (4.0/5)
  • Intro offer:
    $750
  • Annual fee:
    $0
  • Regular APR:
    15.49% – 21.49% Variable
  • Recommended credit:
    670-850 (Good to Excellent)
  • Apply Now externa link icon At Chase’s secure site

Is the Capital One Spark 1% Classic Business Card Right for You?

If you’re looking for business card that earns simple rewards and can function as a way to keep your business and personal expenses separate, the Capital One Spark Classic will suffice. And if you have little personal credit history, it’s also a good choice. You’ll get the chance to build your credit score with timely payments, and unlike many other credit-building cards, pay no annual fee while also earning cash back.

That said, if you have the credit to qualify, there are much better business rewards cards options available. For example, the Chase Ink Business Cash® Credit Card also charges no annual fee, but you’ll get 5% back on your first $25,000 in combined spending at office supply stores and on internet, cable, and phone services annually; 2% cash back on your first $25,000 in combined spending at gas stations and restaurants; and 1% back on everything else. The Capital One Spark Cash Plus, too, does have a $150 annual fee, but you’ll double your rewards with 2% back on every purchase. 

Before you apply, compare other business credit card options you may qualify for. Your credit history, regular business expenses, and budget can help you determine the right combination of credit card benefits and features that work best for your business.

Frequently Asked Questions (FAQ)

What credit score do you need for the Capital One Spark Classic Business Card?

This business card is for people with little credit history or “fair credit,” which typically means a FICO score of 580 or more.

Is the Capital One Spark Classic Business Card an unsecured credit card?

The Capital One Spark Classic Business Card is an unsecured credit card. You do not have to put down a security deposit as collateral upon account opening.

Does the Capital One Spark Classic Business Card charge foreign transaction fees?

The Capital One Spark Classic Business Card does not charge foreign transaction fees if you use it for purchases outside the United States.

Does the Capital One Spark Classic Business Card report to the credit bureaus?

This business card reports your balances and payments to both business and personal credit bureaus, which is how it helps you build credit through positive payment history.

*All information about the Capital One Spark Classic Business and Capital One Spark Plus has been collected independently by NextAdvisor and has not been reviewed by the issuer.