Capital one business credit card no personal guarantee

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There are only a few small business rewards cards available to those with so-so credit, and the Capital One® Spark® Classic for Business is one of them. With this card you can get fired up about building better credit and earn an unlimited 1% cash back on all your business spending. But carry a balance and the sky-high APR will extinguish the value of any rewards earned.

Capital One® Spark® Classic for Business

Regular APR

28.49% variable

Credit Score

Average, Fair, Limited

Pros

• Free employee cards
• No foreign transaction fee
• Applicants with limited or fair credit may qualify
• Business spending management tools

Cons

• Rewards rate is only 1% with no bonus rewards categories
• No welcome bonus
• No intro APR offer
• High APR

Highlights

• Earn unlimited 1% cash back for your business on every purchase, everywhere, no limits or category restrictions
• No annual fee
• Build and strengthen credit for your business by using this credit card responsibly
• $0 Fraud Liability if your card is lost or stolen
• Free employee cards, which also earn unlimited 1% cash back on all purchases
• Rewards won’t expire for the life of the account, and you can redeem your cash back for any amount
• No foreign transaction fees

Introduction

If you’re looking to get a business credit card and your credit is just fair, you’re aren’t going to qualify for a lot of the bells and whistles that come with some of the best small business credit cards. The Capital One Spark Classic Card may not come with a lot of extras like a welcome bonus or introductory 0% APR offer, but it is a viable option for someone with fair credit and that’s the card’s main selling point. There aren’t a whole lot of choices available to someone without stellar credit seeking a business credit card.

Aside from earning rewards and a more forgiving underwriting policy, the Capital One Spark Card also comes with some nice perks like extended warranty and protection on eligible items bought with your card, and coverage for damage or theft on eligible rental cars.

At a Glance

• No annual fee
• Earn a unlimited 1% cash back on your spending
• Reports to credit bureaus, which can help improve your credit standing
• No foreign transaction fees
• Rewards are unlimited and can be redeemed in any amount at any time
• Travel and extended warranty protections

Capital One Spark Classic Rewards

Earning Rewards

Earning rewards is easy on the Capital One Spark Classic. For everything you buy, you’ll earn 1% cash back.

Redeeming Rewards

The Capital One Spark Classic Card has a simple redemption process. You can log into your account online or call Capital One’s rewards center and ask to cash in those earnings as a statement credit on your card account or a check sent in the mail. Rewards can be redeemed in any amount and at any time.

You can  set up automatic redemptions of either method for once a year on a specific date or when your earnings reach a pre-set increment of $25, $50, $100, $200, $500 or $1,500. You can also redeem your rewards for travel through CapitalOneTravel.com.

Rewards Potential

Forbes Advisor uses data from various government agencies in order to determine both baseline income and spending averages across various categories. According to our calculations, the 70th percentile of wage-earning households bring in $100,172 annually and we base spending on that number.

A small business who spends approximately $2,000 a month on their business credit card can net $20 per month, or $240 annually, on the Capital One Spark Classic. It’s not a boatload of cash, but assuming you pay your bill in full and on time, it’s free money just for spending the way you normally would.

Keep in mind that if you ever carry a balance on the Capital One Spark Classic, the ultra-high APR will far outweigh any rewards you’ve earned on the card.

Other Card Benefits

In addition to a simple and straightforward cash back program, the Capital One Spark Classic Card comes with some nice extras not typically available on a card without an annual fee. The card offers:

• Extended Warranty and Protection. Eligible items purchased with the card are protected for up to 90 days in case of damage or theft and you’ll get double the time period of your original manufacturer’s warranty up to $10,000 per claim and $50,000 per cardholder
• Auto Rental Collision Coverage. Provides primary coverage for expenses related to damage or theft when you rent an eligible car , decline the rental company’s waiver and pay for it with your card
• Travel Assistance. This includes emergency services and referrals to medical and legal assistance for you, your immediate family members or your business associates
• Free Employee Cards. Manage employee spending and preset the limits on those cards

The Fine Print

Interest Rates

• APR on Purchases: 28.49% variable

Fees

• Annual Fee: $0
• Cash Advance: Either $10 or 3% of the amount of each cash advance, whichever is greater

How The Capital One Spark Classic Card Stacks Up

Capital One® Spark® Classic for Business* vs. Brex 30 Card

If you’re running a well-funded startup, the Brex Card is a solid option for business owners with little to no credit history. That’s because the card doesn’t require a personal guarantee and instead relies on your company’s cash flow and financial backing to determine credit limits.

The Brex Card is a charge card, so you can’t carry a balance, but if you can use the card exclusively, it offers generous rewards.  If you pay in full monthly you’ll earn 7 points per dollar spent on rideshare, 4 points per dollar on travel booked with Brex, 3 points per dollar at restaurants and dining , 2 points per dollar on software subscriptions and 1 point per dollar on all other transactions. Those who own the version of the Brex card where payments are made daily can earn even higher rewards.

Cardholders can opt to pay their bills daily rather than monthly to earn slightly elevated rewards. It also offers a raft of money-saving discounts and deals, plus has a number of airline transfer partners to move that stack of rewards to. All this for no annual fee.

Capital One® Spark® Classic for Business* vs. Discover it® Secured Credit Card

If your credit is shot, you might not qualify for the Capital One Spark Classic card. If that’s the case, your priority should be to improve your credit score. While not a business card, one great card to consider is the Discover it® Secured Credit Card.

This no-annual-fee card reports to the three major credit bureaus and you’ll earn rewards too—2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases. It has a top-notch first year-bonus too, with Unlimited Cashback Match - Discover will automatically match all the cash back earned at the end of the first year. Discover will automatically start to review your account starting at seven months to see if you qualify for an unsecured card.

Compare Capital One Spark Classic with Other Cards

Is The Capital One Spark Classic Card For You?

If your personal and/or business credit are just so-so, you don’t have a lot of options for getting an unsecured small business credit card. The Capital One Spark Classic is a fine choice in the field as it doesn’t come with an annual fee or a security deposit plus it offers rewards and some perks too. But, if you have good or better credit, look to a more rewarding option.

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