On Aug. 20, Capital One debuted a new lineup of Spark Cash credit cards designed for small business owners. In addition to replacing the Spark Cash with a new Spark Cash Plus Card—a charge card—the bank now lists two Spark Cash Select cards on its website instead of just one.
- Capital One has updated its line of Spark Cash credit cards, offering three cards instead of two.
- The new Spark Cash Plus card replaces the old Spark Cash card, and the bank now offers two Spark Cash Select cards, one for excellent credit, the other for good credit.
- The new Spark Cash Plus Card is a charge card designed for businesses with a lot of expenses.
Details on the New Capital One Business Credit Cards
Capital One has long had a strong lineup of business credit cards, focusing on high, flat rewards rates and flexible redemptions. With its new lineup of Spark Cash cards, the bank is widening its selection for different types of small businesses.
Here's how each card's features break down:
Capital One Spark Cash Plus
The new Spark Cash Plus card replaces the Capital One Spark Cash, which featured unlimited 2% cash back, a decent one-time bonus, and a $95 annual fee. Here's what to expect from the new Spark Cash Plus:
- New cardholders can earn up to $1,000 in the first six months—that's $500 once you spend $5,000 in the first three months, then another $500 when you spend $50,000 in the first six months.
- You'll receive a $200 cash bonus for every year in which you spend $200,000 or more.
- Earn unlimited 2% cash back on every purchase you make.
- The card is a charge card, which means there's no interest rate, but you must pay your bill in full every month—otherwise, you'll be assessed a 2.99% monthly late fee.
- The card charges a $150 annual fee.
This card could be a big hit with business owners with a lot of expenses. The large bonus for new cardholders is one of the best out there, and the annual cash bonus is more than enough to make up for the card's annual fee.
Capital One Spark Cash Select, for Excellent Credit
The old Capital One Spark Cash Select was available for small business owners with good or excellent credit, but now the bank offers separate products for each credit-level category.
With the Spark Cash Select for excellent credit, you'll earn a one-time $500 cash bonus after you spend $4,500 in the first three months—matching the bonus offered by the old Spark Cash card that has been discontinued.
You'll also get unlimited 1.5% cash back on every purchase and pay no annual fee.
This card could be a good fit for small business owners who don't spend enough to justify paying for the new Spark Cash Plus card but who still want to enjoy a solid welcome bonus and decent rewards rate.
Capital One Spark Cash Select, for Good Credit
The Spark Cash Select for good credit offers the same 1.5% rewards rate and also charges no annual fee. But instead of offering a cash bonus for new cardholders, this one provides an introductory 0% APR promotion on purchases for 12 months. After that, the variable APR ranges from 15.99% to 23.99% based on creditworthiness.
Should You Apply for a New Capital One Business Credit Card?
The new Spark Cash Plus credit card has some impressive features, but the barrier to entry is high, with its best benefits requiring a lot of spending plus the ability to pay the balance off in full every month. If your business can meet those spending thresholds, though, and you prefer cash back to travel rewards, the card could be well worth the moderate annual fee.
In contrast, the Spark Cash Select cards don't offer as much value in the long run. However, they don't charge annual fees, making them worth considering for newer businesses. Just be sure to check your credit before you apply to determine which one is best for your business.