The Capital One Spark Miles for Business credit card offers excellent rewards for business owners. In our review, we look at the signup bonus, everyday rewards, and fees.
The Capital One Spark Miles for Business is one of the older business credit cards in the marketplace. Years ago, in what seemed to be an attempt to simplify things, Capital One (along with other issuers) re-branded their business line. Chase chose “Ink,” Discover chose “it,” and Capital One chose “Spark.”
Capital One currently offers five versions of the Spark Business card, and I believe the best version is the Capital One Spark Miles for Business. Having written about hundreds of credit cards over the years, I can honestly say this is the most straightforward a credit card can be.
Capital One Spark Miles for Business Rewards
For becoming a new Capital One business cardholder, you stand to earn 50,000 bonus miles after spending $4,500 in the first three months. You can redeem those miles for travel, cash back, gift cards, or other merchandise (although you should NEVER redeem credit card rewards for merchandise).
If you’d have trouble spending this amount in three months, consider waiting until you have a large business purchase coming and/or you can manage $1,500 a month in business expenses.
The everyday rewards program is two miles for every dollar spent. There is no limit to the amount of miles you can earn. And there is nothing complex about tier levels, quarterly categories, or other obstacles issuers use to minimize rewards. The miles you earn won’t expire for the life of the account. But if you decide to close your Capital One Spark Miles for Business card, you’ll need to use them inside of 12 months, otherwise you will lose them.
When using your miles, there are no blackout dates or restrictions. Fly any airline you want, anytime.
APR and Fees
What other benefits does this card provide? Well, a couple of the better ones are as follows:
- $0 annual fee for the first year ($95 every year after that)
- No foreign transaction fees
- No balance transfer fee
The standard purchase APR is 18.24% variable. There is no introductory APR offer, but there’s also no high-end APR for less qualified applicants. 18.24% might be high for businesses with a great credit history, but for those getting started or with just “good” credit, you’ll likely find the APR very reasonable.
The APR for cash advances is a much higher 24.25%, and the penalty APR is 30.65%. That kind of APR is CRAZY high, so whatever bind you find yourself in when it comes time to make your payments, do your best. Missing consistent payments or not meeting minimum requirements can cost you thousands of dollar in interest if you’re not careful.
The cash advance fee is 3% or $10 (whichever is greater) and there’s a $39 fee if you’re late with a payment. Capital One is likely to forgive that fee if it’s your first mistake, and you ask nicely. But beyond that, they’ll post the debit to your account.
The Smart Decision
Owning my own small business, there are no words I can put on paper to that appropriately stress the importance of keeping your business and personal finances separated. In 2010, when I decided to begin working for myself, I simply used my personal credit card for any business expense. It was so easy I thought. But in February of 2011 when I filed my taxes for the first time as a business owner, I quickly realized how stupid I was.
Gone was the opportunity to deduct valid business expenses. My credit card statement was too vague (and my memory to blurry) to accurately find and record business purchases, so I missed out on the chance to save a good chunk of money. If for no other reason, owning a small business credit card is a really smart idea. The 50,000 mile bonus and double miles rewards the Capital One Spark Miles for Business offers means this card is a must own for any business that would benefit from use of a credit card.
- Learn more about this card and other small business credit cards