Signing-up for credit cards through partner links earns us a commission. Here’s our full Advertising Policy.
The Capital One® Spark® Cash for Business is a great pick for small business owners who want a solid return for their spending without investing in a complicated rewards system.
The card earns a flat 2% cash back on all purchases. And it comes with a welcome bonus worth $500 cash after meeting minimum spending requirements. Who would say no to $500?
But the card also has a $95 annual fee (waived the first year). Let’s take a look to see when the Capital One Spark Cash is worth it.
Is the Capital One Spark Cash Worth It?
Apply Here: Capital One® Spark® Cash for Business
If you’re a small business owner with a 700+ credit score, you have the golden ticket to free travel. There are SO many amazing small business credit card options that can earn you tons in cash or travel. And the Capital One Spark Cash is one of them!
The card comes with a $500 cash bonus after you spend $4,500 on purchases within 3 months of account opening. That’s an EXCELLENT deal. And because its $95 annual fee is waived the first year, opening the card is a no-brainer.
It’s like Capital One is PAYING YOU $500 to open the card. There’s very little downside.
What About After the First Year?
The Capital One Spark Cash has a few advantages over many other small business credit cards.
Lots of MMS readers like Capital One credit cards because they are SO effortless. You’re not juggling bonus categories, your rewards are easy to redeem, and the entire program is very transparent.
With the Capital One Spark Cash, you’re earning cash instead of points. Cash is the easiest type of reward to redeem. You don’t have to spend it on travel – you can reinvest that money back into your business if you like!
The card also has a solid earning rate. You’ll receive 2 cents for every $1 you spend. Just note that the first $4,750 you spend each year will only cause you to break even with the $95 annual fee. ($4,750 X 2 cents per $1).
Great Insurance Benefits
The Capital One Spark Cash comes with a few handy business insurance benefits, too, my favorite of which is primary rental car insurance when renting for business purposes. If you don’t already have a travel credit card that offers primary rental car insurance, this can save you a LOT of money. You can waive the rental agency’s insurance (often $15+ per day), and your card will cover damage due to collision or theft to your rental car.
Note: If you rent a car for personal reasons, the card offers secondary coverage (it will kick-in for things that your personal insurance doesn’t cover).
As a small business owner, your purchases will be covered when you use the Capital One Spark Cash. If you lose an item within 90 days of the purchase date, you can file a claim for Capital One to replace, repair, or reimburse it. You’re covered for up to $10,000 per claim, $50,000 per cardholder.
The card will even double a manufacturer’s warranty up to 1 extra year on warranties of 3 years or less. All great perks for a small business!
Capital One Is a Bit Quirky
Capital One has a lot of valuable cards, like the Capital One® Venture® Rewards Credit Card. If you’ve recently opened one of those cards, be aware that Capital One won’t approve more than 1 application every 6 months.
Additionally, Capital One pulls your credit report from all 3 main credit bureaus (Equifax, Experian, and TransUnion) when you apply. That concerns some people, though it’s really nothing to worry about.
The Capital One Spark Cash is absolutely worth opening. You’ll earn a bonus $500 after meeting minimum spending requirements, and the $95 annual fee is waived the first year. So you can test the card out for ~11 months, and if you decide it doesn’t fit into your strategy, you can cancel it without paying a dime.
The card is worth keeping if:
- You favor cash over points
- You hate juggling bonus categories
- You have a LOT of business expenses
- You will use its insurance benefits, such as primary rental car insurance when renting for business purposes and purchase protection
You really must say YES to all the above for this card to be a keeper. That’s because there are no-annual-fee credit cards that earn an effective 2% back. If you’re going to pay this card’s $95 annual fee, you better get your money’s worth from the card’s ongoing benefits.
Let me know if you think the Capital One Spark Cash is a worthwhile card for your lifestyle! And subscribe to our newsletter for more posts that make hard credit card decisions easier: