Capital One Spark Treasury Review
Capital One Spark Cash Full Review
Decent welcome bonus offer
Simple rewards program
Your personal credit history could be affected
- Decent welcome bonus offer: The Capital One Spark Cash card offers a $ 500 cash bonus once you spend $ 4,500 in the first three months after opening your account. While there are larger bonuses available with similar spending requirements, that still equates to around 11% return on your initial spending, which is a solid value.
- Simple and lucrative cash back rewards: The card offers a flat-rate 2% cash back on every purchase you make. If simplicity is your thing, it’s probably music to your ears. You don’t have to worry about which traders are eligible for bonus category spending, and there is no cap on the amount eligible for the 2% rate.
In other words, it’s easy to know how much you are getting back each time you use the card. This is especially useful as the time for renewal approaches and the decision to pay the card’s $ 95 annual fee (which is waived in the first year) is approaching. At the 2% cash back rate, spending $ 4,750 per year would yield enough rewards to justify the cost of the card. Beyond that, other rewards from extra spending are pure profit, provided, of course, that you don’t have a balance and allow interest charges to offset that income.
- Your personal credit history could be affected: Like most major business credit card issuers, Capital One reports your card activity to business credit bureaus, which can help you establish a business credit history. But Capital One also reports this information to consumer credit bureaus. This means that accumulating a huge balance or missing a payment on the card could potentially lower your personal credit score, especially if the problem occurs repeatedly.
Capital One Spark Cash is a solid choice for businesses that plan to charge a lot of money on a card, a minimum of around $ 500 per month. It is particularly suitable for homeowners who plan to incur much higher expenses up front. This is because charging $ 4,500 on the card in your first three months earns you a bonus of $ 500.
This card’s flat 2% cash back rewards are appealingly simple for businesses with little time to master the multiple reward rates of some cards and not spending enough in a category to justify the time required to such monitoring. Ideally, it’s also a card for those who don’t have to worry about business cash flow or other issues that might interrupt their ability to make regular payments on time or be a great customer. This is because unlike most other business card issuers, Capital One provides the credit behavior of their business card holders to consumer credit reporting agencies.
Multiple missteps with this card could therefore potentially compromise your ability to obtain additional personal credit on favorable terms. This could be a big negative point for business owners who want a clear separation between their business and personal relationships.
Capital One Spark Cash Bonus
Once you are approved for the card, you will earn $ 500 if you spend $ 4,500 in the first three months. Keep in mind that the delay begins with the account opening, which occurs when you are approved, rather than from the date you receive the card in the mail.
Also, keep in mind that you will also earn 2% cash back on spending necessary to earn these bonuses.
You will earn 2% fixed cash back on every purchase you make. You’ll be hard-pressed to beat that base reward rate, at least on any purchases you make. However, be aware that the card charges an annual fee after the first year. Therefore, to justify that $ 95 tab, you’ll essentially be forgoing a significant amount of the extra rewards you get with this card compared to a card with no annual fee.
Details on how to use rewards
The cash back you earn with the card can be redeemed for cash at any amount at any time, and your rewards will never expire. You can also buy gift cards and more.
If you choose to receive cash rewards, you can choose to receive them as a general statement, statement against specific purchases, or paper check. You can even set up automatic redemptions once your balance reaches $ 25, $ 50, $ 100, $ 200, $ 500, or $ 1,500. These automated rewards can make it even more appealing to business owners who want as much simplicity as possible.
How to Maximize Your Rewards
This card’s cash back rewards are worth the same no matter how you redeem them. So other than using your card on every purchase you can make, there’s not much you can do to maximize the value of the cash back you receive.
You should, of course, try to pay off your balance on time and in full each month to avoid interest charges, which can significantly offset or even eliminate the benefits of the rewards program. If you plan on spending big soon after getting Capital One Spark Cash, the card bonus is worth planning to meet the spending requirements of this benefit, perhaps increasing large purchases to meet the deadline. three months.
Beware, however, of the temptation to spend indiscriminately to earn the rewards. Reckless expenses that you cannot repay could mean losing the earned value of the bonus, and more, due to interest charges and could even put your business at risk with debts that you ultimately cannot repay.
- Rental car insurance
- Travel assistance
- Extended warranty protection
- Free employee cards and personalized spending limits
- Year-end reviews
- Buy recordings in multiple formats
Capital One ranked fifth in the 2020 JD Power Credit Card Customer Satisfaction Survey. The bank offers free access to business credit reports through its Business CreditWise program – no other major business credit card issuer offers this benefit.
The bank’s customer service team is available 24 hours a day, seven days a week, which is standard among credit card issuers. You can manage your account online or with the Capital One mobile app, which was ranked second among banks by JD Power in its 2020 US Mobile Banking App Satisfaction Survey.
You can lock your card from the mobile app, which can be useful if the card is lost or stolen. This functionality also applies to employee cards, which allow you to easily control the use of wrong cards. Beyond this functionality, Capital One’s security features are industry standard.
Fees to watch out for
For the most part, Capital One Spark Cash’s fees are up to industry standards with one exception. Typically, cash back credit cards charge a foreign transaction fee, but not this one.
If your business regularly charges credit cards over $ 5,000 per year, Capital One Spark Cash’s rewards program consistently and easily allows you to accumulate enough cash back rewards to justify its $ 95 annual fee. $.
If such expenses are beyond your means, it is worth comparing Capital One Spark Cash with other top business credit cards that offer comparable cash back rates. The Amex Blue Business Cash Plus, for example, offers 2% cash back on the first $ 50,000 spent each year and does not charge any annual fees.
For a relatively large bonus without huge expense, consider Chase Ink Business Preferred, which offers 100,000 bonus points after spending $ 15,000 in the first three months, which equates to $ 1,250 on travel booked through Chase. However, the card comes with an annual fee of $ 95 and, saved on a special pay rate for travel and a few other categories, offers less valuable rewards than Capital One Spark Cash.