Credit Cards

What Credit Score Do You Need For Capital One Spark

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 6 minute read

If you own a small business and have average credit or lower, you may qualify for a Capital One Spark Classic for a Business credit card. Spark Classic’s actual value is in its ability to help you develop your credit, despite the fact that its fair cash-back rewards rate and minimum fees (including no annual fee) are excellent bonuses for anyone who likes low-cost rewards credit cards.

Capital One’s own Spark Cash Select and Spark Miles Select, which charge no annual fee and offer better benefits to business owners with excellent credit, are among the several entry-level business credit cards with which Spark Classic must contend. 

The American Express Business Green Rewards Card and the American Express Blue Business Plus Card are two of its main rivals in the business credit card market.

Keep in mind that Spark Classic, as an introductory business credit card, doesn’t provide as many rewards as some of its more premium rivals. For example, applicants are warned that their initial credit limits could be as little as $500 and there is no promotional APR offer or early spend bonus.

Key Characteristics

A Spark Classic card’s main benefits are as follows.

Redemption of Cash Back Rewards

When using this card, you will receive 1% cash back on all purchases, no matter how much you spend. Your cashback can be cashed out for a statement credit or a printed cheque at any time. In addition, once you reach a $25, $50, $100, or $200 cash-back barrier, you can arrange automated redemptions to send paper checks or apply for statement credits.

Capital One also allows you to redeem your cash back for things other than cash, such as gift cards, but the exchange rate for these items is usually lower than the customary $0.01 per cash back point and is subject to change without notice.

Important Fees

The company does not charge any fees for additional employee cards, balance transfers, foreign transactions, or annual fees.

Year-End and Quarterly Summaries

A summary of your quarterly and annual spending, including any employee card purchases, is provided at the end of each quarter and year. To help you save time and effort when it comes to things like taxes, budgeting, and accounting, we’ve included detailed spending data that have been neatly organized and itemized for you in this summary.

Downloadable Records from Purchase

Downloadable purchase records are provided for you, and they are formatted in a way that makes it simple to import them into spreadsheets or databases like QuickBooks, Excel, or Quicken. There will be even less complexity in the bookkeeping and tax-filing procedures as a result of this.

Additional Advantages

When you charge the entire rental car cost to your Capital One Spark Classic card, you’ll receive free collision damage coverage. You’ll also get up to $3,000 in lost luggage reimbursement and access to 24/7 emergency travel help services like lost card replacement and ticket replacement.

Credit Required

You need good, fair, or limited credit to qualify for this card. One can still be considered for this card even if they have numerous negative items on their credit report. However, recent bankruptcy or foreclosure may be deal-breakers.

Advantages

There are a few good reasons why you might wish to join Spark Classic.

  1. There is Not Annual Charge. There is no yearly charge associated with the Capital One Spark Classic for Business account. In comparison to other popular options like Chase Ink Business Preferred and American Express Business Green Rewards, this is great news for thrifty business owners.
  2. Loans for Business Owners with Average or Below-Average Credit Scores. The requirements for getting a Spark Classic card are very low for a corporate credit card. There is no hard and fast rule that says you can’t apply here even if you have major credit issues like a history of late payments or a high credit usage ratio. Alternatives that are just as common require good credit, if not better, such as the American Express family of cards and the other Capital One Spark cards.
  3. There Will Be No Additional Fees for International Transactions. The absence of fees for purchases made in other countries is a major perk of using this card for international trade. The fact that many cards issued by AmEx’s rivals impose such fees is a major negative for travelers who frequently use their cards overseas.
  4. There are 0 Balance Transfer Fees. No balance transfer fees are incurred while using Spark Classic. Despite the relatively high balance transfer APR, this is a perk for business owners who want to move high-interest balances to a card with no additional fees.
  5. No Limits on Reward Money. With Spark Classic, the 1% cash-back rate is effective for all purchases, regardless of the amount. Both of the Chase Ink cards place restrictions on how much you can spend in different categories, reducing your earning potential if you use the cards frequently.
  6. There Are No Withdrawal Limits for Cash Back. If you don’t spend (or make) enough to frequently fulfill such minimums, you’ll appreciate this card’s lack of a cash-back redemption barrier.

Disadvantages

When deciding whether or not to sign up for Spark Classic, you should think about these disadvantages.

  1. Starts off with a Low Credit Limit. The starting credit limit for Spark Classic customers with fair credit may be as low as $500. Credit limit increases are possible, but Capital One does not disclose exactly how they are determined or how often cardholders may expect them.
  2. Profits for Enterprises are Minimal at Best. The Spark Classic does not provide as many useful features for businesses as other credit cards do. There’s hardly much to discuss other than the regular spending reports and downloadable purchase data. American Express business cards (including Business Green Rewards) offer discounts of five percent at certain partner retailers including FedEx.
  3. There is Not Any Introductory APR. Neither new purchases nor balance transfers are eligible for Spark Classic’s introductory 0% APR period. That’s a downside compared to Capital One’s Spark Cash Select for Business and Spark Miles Select for Business, both of which provide 0% APR rates for nine months on purchases and balance transfers, respectively.
  4. In Other Words, there is no early spending bonus. One major drawback for new cards that want to maximize their earnings right away is the fact that Spark Classic does not offer an early spend bonus. The maximum bonus you can receive when you spend money on your Fellow Spark card in the first three months is $500.
  5. Limitations on Redemption for Services Other Than Cash. Spark Classic is not the card for you if you prefer to be able to redeem your rewards for things other than cash at competitive prices. It is possible that the value of your earned points will decrease after redeeming them for a gift card. Both the Chase Ink and the American Express business cards provide an extensive selection of travel and product redemption possibilities at reasonable prices (typically $0.01 per point or better).

Bottom Line

If you own a small business and have a big vision but less-than-perfect credit, the Capital One Spark Classic for a Business credit card is a great option. It’s extremely comparable to the Capital One QuicksilverOne consumer credit card, which is also designed for those with ordinary to good credit, has a moderate initial credit limit, and doesn’t rack up cash-back benefits as quickly as its more generous competitors.

In the right hands, both the Spark Classic and the QuicksilverOne can serve as stepping stones to more premium credit cards with more generous spending limits, lower interest rates, better rewards, and enticing perks. The first steps are always the hardest, but you’ve made the right one.

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