Designed to provide spending power without restrictions, the Spark 2% card is the premier version of Capital One’s business card offerings. It could be a good funding alternative for the times when your company needs to make a large purchase without the time constraints a loan application requires. This review delves into the benefits to help you learn more about how it works – and whether it’s the right card for your company.
Pros:
No preset spending limitNo APREarn a flat fee of 2% cash back with no revolving categories or restrictionsNo foreign transaction feesFree employee cards available with a spending limit of your choiceLucrative bonus for new cardholders
Cons:
Requires excellent creditBalance due in full each monthAnnual fee of $150
The legal names, addresses, and Social Security numbers for all business owners The legal business name, address, and company tax ID number
Once you complete and submit the application, you should receive a decision in just a few minutes. You’ll receive a 2% reward for every dollar you spend. If your business has high capital expenditures, you’ll be pleased to hear there aren’t any cashback rewards caps. Plus, you can order cards for your employees at no additional charge and earn cash-back rewards on their spending as well. Keep in mind that the card has no preset spending limit, which can be helpful when you need to make a large purchase. However, the balance is always due in full. There is no APR because the Spark 2% card is not designed for carrying a balance. If you don’t make your payment by the due date, the balance is subject to a penalty rate of 2.99% per month and the account will be marked as past due. There are plenty of spending and transactional reports available that can be downloaded or integrated with other software, such as Excel, Quicken, or QuickBooks. And to make tax time easier, Capital One issues year-end itemized spending reports. The virtual card feature is unique and especially useful if you make frequent online or cardless transactions. You’ll receive a temporary card number when making purchases online to keep your actual card account number concealed from merchants, reducing the potential for fraud. Although the Spark 2% is a business card, the card issuer reviews your personal credit to determine approval odds. You’ll need an excellent credit score to get approved. Most business credit cards operate this way, using the card applicant’s credit history (instead of the company’s credit score) to approve or deny an application. The good news is, businesses with a limited track record can still have access to a revolving line of credit through the owner. However, a business credit card could affect your personal credit.
Chase Ink Preferred: It’s less expensive with an annual fee of $95, but could be more rewarding for the traveling businessperson. It earns 3x points per dollar (on the first $150,000 spent in combined purchases per year) for a variety of business-related expenses, and comes equipped with a nice selection of travel protections. It also features a 1:1 transfer rate to Chase’s travel partners. By transferring points, cardholders could find a higher per-point value.American Express Business Gold Card: Coming in at a higher price tag of $295 annually, it offers greater rewards and better benefits. The Business Gold card offers cardholders 4x points per dollar in the two categories they spend the most in each billing cycle, making it flexible and rewarding. However, the 4x points categories are limited to the first $150,000 spent in a calendar year, so if your business spends more than that annually, it’s better to go with a different card.Bank of America Business Advantage Customized Cash Rewards Card: An ideal choice for small business owners. For no annual fee, it offers the choice of one 3% cash back category to earn in, in addition to 2% for dining and 1% for everything else. The 3% and 2% categories are limited to the first $50,000 spent in combined purchases per year. The choices for the 3% cash back category include gas, office supply stores, travel, computer services, business consulting services, and TV, wireless, and telecom service.
