The Capital One Spark 1% Classic† credit card is designed for small business owners with fair credit who need a business credit card for company purchases, bookkeeping and tax preparation management.
Capital One Spark 1% Classic Overview
The Capital One Spark 1% Classic† could be considered the entry level card in Capital One's line of small business cards, which are all branded with Spark name. The Capital One Spark 1% Classic† has no annual fee, but it offers many of the same benefits featured on other premium rewards cards for small business owners.
This card is unique amongst business cards in that applicants don't need to have excellent or even good credit to be approved. In fact, the Capital One Spark 1% Classic† is the only Capital One small business card that's specifically marketed towards applicants with fair credit, which ranges from 580 to 669 on FICO scoring.
But as you might expect, this card has a higher standard interest rate compared to those meant for applicants with good or excellent credit. The Capital One Spark 1% Classic† has an interest rate of 30.49% Variable APR, which is a variable rate that rises and falls with the prime rate. With rates this high, we strongly recommend you avoid interest charges by paying your monthly statement balances in full.
$0
N/A
30.49% Variable
N/A
Fair
- No annual fee
- Travel and purchase protection
- Some other business cards offer better rewards
- No welcome bonus
Whether you have a new business or just don't have a ton of credit history, the Capital One Spark 1% Classic could be a good stepping stone. It's possible to get approved for the card with just fair credit, whereas most other business cards that earn rewards require a good or even excellent credit score.
Capital One Spark 1% Classic Rewards
The Capital One Spark 1% Classic† allows business owners to earn basic rewards on everyday spend — a rare feature on cards designed for applicants with low credit scores.
Welcome Bonus
Unlike competing business credit cards cards designed for those with excellent credit, the Capital One Spark 1% Classic† doesn't offer a new account bonus.
How to Earn Rewards With the Capital One Spark 1% Classic
The Capital One Spark 1% Classic† has a very simple rewards structure. You earn 1% cash back on all purchases, with no limits. And when you book hotels and rental cars through Capital One Travel, you can earn 5% cash back.
How to Use Rewards With the Capital One Spark 1% Classic
Your cash back can be redeemed online and in any amount as a statement credit or as a check. You can also use your cash back to cover a recent purchase or to buy gift cards.
Capital One Spark 1% Classic Benefits and Features
The Capital One Spark 1% Classic† comes with many tools designed to streamline business accounting and expense management.
Accounting and Business Management
This benefit offers an itemized report of your spending, which can help small business owners to simplify their budgeting, track expenses, and prepare taxes.
The Capital One Spark 1% Classic† also lets you view a list of recurring transactions and cardholders can receive year-end summaries to simplify accounting and tax preparation. This card even integrates with popular business tax software such as Quickbooks, Concur Expense, Expensify, Xero and Abacus.
Employee Access
Capital One Spark 1% Classic† cardholders can request free additional cards for employee authorized users, and the primary account holder can set customized spending limits for each user. You can also assign an account manager with the access necessary to review transactions and resolve any problems.
Fraud Prevention
The Capital One Spark 1% Classic† comes with a host of services to protect your account including automatic fraud and security alerts. You also have the ability to create one-time-use virtual card numbers that allow you to make purchases without disclosing your account information. The Card Lock feature allows you to temporarily lock your card if you suspect it has been misplaced, lost or stolen.
Travel Insurance and Purchase Protection
The Capital One Spark 1% Classic† offers several valuable services to help you when traveling. Roadside assistance helps you during automotive emergencies, such as jump-starting, tire changing and towing.
Cardholders also receive access to Capital One Travel, which offers customized booking recommendations that helps you find the right time to purchase your flights for the lowest price. Finally, you also receive additional warranty coverage that adds a one year to the manufacturer's warranty of eligible purchases.
Capital One Spark 1% Classic Annual Fee and Other Costs
There's no annual fee for this card, and no foreign transaction fees, as is the case for all Capital One credit cards. There is a late payment fee and a cash advance fee (see Capital One's website for details).
Compare the Capital One Spark 1% Classic
While the Capital One Spark 1% Classic† has its merits, small business owners with good to excellent credit have many cards available to them which often come with better benefits. Even if you have poor to fair credit, it's still worth comparing other options to ensure you find the financial tool that best suits your needs.
Here are some alternative options for you to consider.
Bank of America Business Advantage Unlimited Cash Rewards Secured Business Credit Card vs. Capital One Spark 1% Classic
The Bank of America Business Advantage Unlimited Cash Rewards Secured Business Credit Card is one of our choices for the best business credit cards for bad credit, as it features the best everyday rewards in its category.
This card earns 1.5% cash back on all purchases, which is 50% more than what the Capital One Spark 1% Classic† earns per dollar spent. It also doesn't come with an annual fee.
While this secured card is available to applicants with nearly any credit history, cardholders must submit a $1,000 minimum security deposit to open an account.
FNBO Business Edition® Secured Mastercard® Credit Card vs. Capital One Spark 1% Classic
Another contender on our list of cards for businesses with low credit, the FNBO Business Edition® Secured Mastercard® Credit Card offers credit limits between $2,000 and $100,000, but requires a security deposit of 110% of the amount of your desired credit limit. However, your deposit will earn interest while it sits in your secured card account.
The card has a $39 annual fee, but doesn't earn any cash back or other rewards.
Capital One Spark Cash Select vs. Capital One Spark 1% Classic
This Capital One card can be a more rewarding option for business owners with better credit. The Capital One Spark Cash Select† is nearly identical to the Capital One Spark 1% Classic†, but it earns 1.5% cash back on all purchases instead of the 1% you'll earn per dollar spent on the Spark Classic.
The Capital One Spark Cash Select† does not have an annual fee, and features an intro APR of N/A (then 17.49% - 23.49% Variable APR).
Capital One Spark 1% Classic Cardholder Insights
As part of our review of the Capital One Spark 1% Classic†, we reviewed the concerns of current and previous cardholders across a number of forums such as Reddit and FlyerTalk. Here are some trends you may want to know and consider before applying.
Approval Odds
Since the Capital One Spark 1% Classic† is designed to appeal to those with credit problems, it's not surprising that much of the comments about it relate to the chances of being approved. For example, Redditors frequently debate their odds of getting approved with various credit scores.
The best advice is to apply for the card that's designed for those with your credit score range. There are reports of applicants being sent letters from Capital One requesting additional identifying information.
Spark vs. Quicksilver
Many people online compared the Capital One Spark business cards to the consumer-targeted Capital One Quicksilver cards. It's easy to see why, as the terms of these cards are very similar, with the key points being unlimited cash back at a fixed rate, and no annual fee for several of each version.
However, the Spark cards are specifically intended for small business use, and come with a range of expense tracking and business management features that most consumers would be unlikely to use.
Capital One Spark 1% Classic Frequently Asked Questions
The Capital One Spark 1% Classic† is designed for businesses with fair credit, and earns 1% cash back on all purchases. It doesn't have an annual fee or charge foreign transaction fees, and allows cardholders to add authorized users at no cost.
The Capital One Spark 1% Classic† is ideal for small to medium-sized businesses with fair credit that are seeking to improve their credit score while earning rewards on every purchase. It's particularly beneficial for businesses that incur regular expenses which may not qualify for premium business cards that require higher credit scores.
By reporting to the major credit bureaus, the Capital One Spark 1% Classic† helps businesses build credit with responsible use. Timely payments and maintaining low balances can positively impact your business credit score, making it easier to qualify for more competitive financial products in the future.
Yes, the cash back earned with the Capital One Spark 1% Classic† can be applied as a statement credit to offset business expenses, or it can be redeemed for checks. This flexibility allows businesses to reinvest their rewards in a way that best suits their needs.
The Capital One Spark 1% Classic† provides several protections and benefits, including fraud coverage in case your card is lost or stolen, customizable spending limits on employee cards, and year-end summaries to simplify accounting and budgeting. Additionally, cardholders have access to Capital One's business resources and 24/7 customer service.
Why You Should Trust Us: How We Reviewed the Capital One Spark 1% Classic
Business Insider's credit cards team reviewed the Capital One Spark 1% Classic† by comparing it to similar small business credit cards. We looked at several factors in our assessment, including:
- Credit requirements — Who is this card available to? What credit score is required?
- Cash back rewards — What are the cash back rewards of this card? How do they work? Are they capped?
- Costs — What are the costs of this card, in terms of fees? What is the standard interest rate?
- Benefits — What cardholder perks and benefits can you expect from this card? How does it meet the needs of its intended users?
