Capital One Spark Miles Business Credit Cards Review
Capital One® offers two different Spark® Miles Business credit cards, each of which is a great business rewards card. This article reviews and compares each Spark Miles credit card so you can determine which one makes the most sense for your business.
Overview of the Capital One Spark Miles Credit Cards
Each of the Spark Miles Business cards offer great travel rewards. But there are differences in the rates you will earn those rewards, in the signup bonuses, the fees, and other minor details. Here is a look at the key features and differences.
Spark® Miles for Business Overview
Annual Fee: $0 first year, then $95
Credit Required: Good
Rewards Program and Signup Bonuses*:
Earn 2 miles per dollar spent on every purchase, every day.
Plus, a one-time bonus of 50,000 miles once you spend $4,500 on purchases within the first 3 months.
Miles don’t expire, and there are no categories to limit where or what you buy.
$0 waived first year, then $95
There’s no limit to the amount of miles you can earn and miles don’t expire.
Redeem miles for travel, cash back, gift cards, and more.
No foreign transaction fees and fly on any airline, anytime, with no blackout dates or seat restrictions.
Capital One designed the Spark Miles travel rewards program to be very straightforward. You earn an unlimited, flat 1.5 or 2 miles on all spending. Your miles will never expire and you can redeem your miles for vacation packages, tickets on any airline, hotel stays, and more.
Each mile is worth $0.01 toward any travel expense. When you want to redeem your miles, you can use them as a statement credit against any eligible travel expense. Unlike many travel rewards cards, this gives you the freedom to shop around for the best deals on hotel stays, airline tickets, vacation packages, rental cars, and more with no restrictions or blackout dates, then apply your miles. You can even earn additional miles or loyalty points through your travel provider before you redeem your Spark miles!
With no limit to how many miles you can earn or seat restrictions or blackout dates to worry about, the Spark Miles rewards program is very simple.
The Spark Miles program does not allow you to transfer miles to airline or hotel loyalty programs. This is a big downside if you love to maximize your rewards and enjoy the benefits of a loyalty program. However, if you prefer a simple travel rewards business card with no foreign transaction fees, a low or no annual fee, and a no-nonsense approach to rewards, you may be better suited to a Spark Miles card.
You can see below how the Spark Miles rewards program stacks up against the competition.
Which Spark Miles Card is Right for Your Business?
The main difference between the three Spark Cash business rewards cards come down to the following:
Miles reward rate
Introductory APR offer
Card to Maximize Your Travel Rewards
If you are looking to maximize your travel rewards, you will select either Spark Miles or Spark Miles Select.
It is true that Spark Miles offers 2x reward miles and a larger signup bonus – but it comes at the expense of a $95 annual fee and higher spending threshold to reach to signup bonus.
If you will spend at least $11,800 per year on your business credit card (which is $983/month), the Spark Miles card benefits will pay for the annual fee. But keep in mind that to earn the sign up bonus, you will need to average $1,500/month in spending over the first three months.
So if you are only spending $1,000/month, Spark Miles Select may be right for you to maximize your cash back. You can always upgrade later. And, this way, you should be able to meet the requirements for the bonus miles signup offer.
Finance a Business with an Intro APR Offer
The Spark Mile Select card is offering an introductory 0% APR perk on new purchases. So, while you rewards are worth a little less, you avoid annual fees in the future and gain the ability to finance new purchases interest free for a period of time.
What if You Only Have Average Credit?
All the Capital One Spark Miles business cards are for those with good to excellent credit. However, Capital One offers the Spark Classic business cash rewards card for those with average credit. You will receive cash back rewards, and not miles. However, it is a no annual fee card with great perks. And you can check out the complete review here.
Other Perks of Sparks Miles Business Cards
In addition to the rewards and benefits already highlighted, all Capital One Spark Business credit cards come with the following benefits, which include Visa® Business Benefits*:
Quarterly and year-end itemized spending reports.
No foreign transaction fees.
Unlimited rewards that do not expire and can be redeemed at anytime for any amount – without blackout dates.
Auto rental collision damage coverage.
Purchase security and extended warranty protection.
Travel and emergency assistance services
Building Business Credit
If you’re considering a Capital One Spark Miles card, there are a few more things you should be aware of.
Right now, you must use your personal Social Security number to apply for any of the Spark cards. This means your personal credit history will be used to determine eligibility. This also means that you will be personally responsible for the debt.
Despite this fact, a major benefit of the Spark cards is you will be building business credit. This is a huge benefit because not even the American Express business cards currently report to business credit bureaus.
If you want to build credit for your business, make sure your company’s taxpayer identification number is on your application. You can apply for the Spark card even if you are a sole proprietor, but you should leave the business tax ID blank if you are a sole proprietor without a corporation or limited liability company.
How it Compares
Not sure if the Spark Miles card will offer you the most benefit? Here’s how it comes to other popular business cards that offer travel rewards.
Spark Miles vs Chase Ink Bold
The Chase Ink Bold is one of the most popular business rewards cards, and it comes with a 50,000 point sign-up bonus once you spend $5,000 within 3 months. This is comparable to the Capital One Spark Miles bonus, although it has a higher spending threshold to meet. The card also has an annual fee of $95 (waived the first year), which is significantly higher than the Spark card.
The Ink Bold earns 5 points per $1 on office supplies, cable TV, internet, and cell phone service, plus 2 points on hotel and gas spending, and 1 point per $1 on everything else. If you plan to spend heavily in office supplies and utilities, this card may earn you more.
For most business owners, the Spark Miles will pay off more with a lower annual fee and a flat 2 miles per $1. However, you should note that you can transfer Ink points at a 1:1 ratio to many loyalty programs, including United, Hyatt, Ritz-Carlton, and Amtrak. You can also use your points toward buying travel at a rate of 1.25 cents per point, or a 25% bonus.
Spark Miles vs American Express Plum
The AmEx Plum card is one of the most unique business credit cards. The Plum card lets you choose when to pay each month, with a 1.5% discount when you pay your bill early. You can also choose to get 60 days to pay with no interest, or do both and still get your discount.
For a limited time, the Plum card will let you earn up to 3.5% cash back on your first $30,000 in spending within the first three months. To do this, you need to pay early to get your 1.5% back. Then you get another $200 statement credit for every $10,000 you spend, up to the limit.
While the Plum card offers some great benefits, it’s not the best choice for most small business owners with its hefty $250 annual fee (waived the first year). If you prefer being rewarded for paying early and flexible payment options over higher rewards, the Plum card may be a good choice.
The Capital One Spark Miles cards offer solid choices for business owners who travel often. This card allows you to shop for travel as you normally would, choosing the best deals and the carriers or providers you like, then use your rewards for statement credits against your travel expenses. The Spark Miles cards offers a simple, easy-to-understand rewards program and have a great bonus sign up.
For business owners who are spending less or looking for better financing options, you can choose one of the Spark Miles cards with no annual fee.
Remember that you can qualify for the Spark Miles card even if you are a sole proprietor. This is one of the few business credit cards that will actually help you establish business credit. While you need to use your personal credit as a guarantee, your payment history will be reported to business credit bureaus.
Credit Shout is a community of personal finance experts dedicated to helping you save money and make smart financial decisions. Learn how to master your credit card rewards, improve your credit score and start eliminating your debt.