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Capital One Spark 1% Classic Card Review: An Easy Pick for Fair Credit

Review Updated
Brittney Myers
Author: Brittney Myers
Brittney Myers
Brittney Myers
Writer

Brittney started her writing career in the world of science, putting her physics degree to good use. Her journey into finance started with building her personal credit, but soon grew into a borderline obsession with credit cards and travel rewards. For the last 7 years, she has enjoyed the ability to share her expertise with readers, as well as the opportunity to interview companies and individuals making an impact on our financial lives. She wholly believe most problems can be solved with the right research -- and a good spreadsheet -- and she specializes in translating complex financial topics into actionable advice to help educate and empower readers.

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Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures that our product ratings are not influenced by compensation. Terms may apply to offers listed on this page.

Offer status

The Capital One Spark 1% Classic Card is unavailable on Motley Fool Money. All information was collected independently and not reviewed for accuracy or provided by the credit card issuer. Some items may be out of date.

Capital One Spark 1% Classic Card is a credit card designed for business owners with average credit. We think it's a solid card to consider, particularly for cardholders seeking an entry-level business card to better establish their credit histories. You can even earn rewards while you do so. See our detailed Capital One Spark 1% Classic Card review to find out if this is the right card for your business.

Ratings Methodology

Capital One Spark 1% Classic Card

Capital One Spark 1% Classic Card
Rating image, 3.75 out of 5 stars.
3.75/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 3.75 out of 5 stars.
3.75/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Credit Score: Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.
Recommended Credit Score required for this offer is: Fair/New to Credit Under(669)
Credit Score Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.

Fair/New to Credit Under(669)

Intro APR

Purchases: N/A

Balance Transfers: N/A

Regular APR

29.99%, variable

Rewards

1% cash back

Annual Fee

$0

Welcome Offer

N/A

  • For businesses or borrowers with fair credit, this card is a winner. Purchases earn unlimited 1% cash back, plus it includes a $0 annual fee. These perks are rare for cards in this credit score range.

    • Flexible credit score requirements
    • Cash back on purchases
    • No annual fee
    • No foreign transaction fee
    • No rewards
    • No intro APR offer
    • Earn unlimited 1% cash back for your business on every purchase, everywhere, no limits or category restrictions. Plus, earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel.
    • 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 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
The Capital One Spark 1% Classic Card is unavailable on Motley Fool Money. All information was collected independently and not reviewed for accuracy or provided by the credit card issuer. Some items may be out of date.

Our Top Business Credit Card Alternate Options

We suggest taking a good look at various options to pick the perfect card for you and your small business. Remember, not all business credit cards are created equal, and every business has unique needs. To help you out, we've put together a short list of top-notch business credit cards that offer great value across a variety of business types.

Offer Our Rating Welcome Offer Rewards Program APR Learn More
Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Earn up to $750 bonus cash back Circle with letter I in it. Earn $350 when you spend $3,000 on purchases in the first three months and an additional $400 when you spend $6,000 on purchases in the first six months after account opening. Earn 5% cash back in select business categories Circle with letter I in it. Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year. Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other card purchases with no limit to the amount you can earn.

Intro: Circle with letter I in it. 0% Intro APR on Purchases

Purchases: 0% Intro APR on Purchases, 12 months

Balance Transfers: N/A

Regular: 17.74% - 25.74% Variable

Apply Now for Ink Business Cash® Credit Card

On Chase's Secure Website.

Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Earn $750 bonus cash back Circle with letter I in it. Earn $750 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening. Earn unlimited 1.5% cash back on every purchase Circle with letter I in it. Earn unlimited 1.5% cash back on every purchase made for your business

Intro: Circle with letter I in it. 0% Intro APR on Purchases

Purchases: 0% Intro APR on Purchases, 12 months

Balance Transfers: N/A

Regular: 17.74% - 23.74% Variable

Apply Now for Ink Business Unlimited® Credit Card

On Chase's Secure Website.

Rating image, 4.75 out of 5 stars.
4.75/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
= Good
= Fair
= Poor
150,000 Miles Circle with letter I in it. 150,000 Miles once you spend $30,000 in the first 3 months from account opening 2X-10X miles Circle with letter I in it. Earn unlimited 2X miles on every purchase, everywhere—with no limits or category restrictions. Earn unlimited 10X miles on hotels and rental cars and 5X miles on flights and vacation rentals booked through Capital One Travel, where you'll get the best prices on thousands of options.

Intro:

Purchases: N/A

Balance Transfers: N/A

Regular: N/A

Apply Now for Capital One Venture X Business

On Capital One's Secure Website.

Rates & Fees External Link Icon

Full Capital One Spark 1% Classic Card review

This credit card is a good fit for: Business owners with average credit who want to earn rewards without paying an annual fee.

Top perks

The perks for this card are limited, but they're worth noting.

Accepts business owners with fair credit

Capital One offers many business credit cards, but the Capital One Spark 1% Classic Card is the only one specifically designed for business owners with fair credit histories. Keep this in mind as you read the rest of this card review -- and this section in particular. While some of these perks may not seem competitive with the industry's best business credit cards, they are strong for a card geared toward fair-credit borrowers who need to build credit.

Unlimited 1% cash back

Credit-builder cards are often stingy on the rewards, but having some rewards is definitely better than having no rewards. Capital One Spark 1% Classic Card cardholders enjoy a flat 1% cash back rewards rate on spending. Cash back is unlimited, with no monthly, quarterly, or annual caps. And employee cards earn the same 1% cash back rate on card purchases. Cash back rewards also don't expire, as long as the account remains open and in good standing.

No foreign transaction fees

Whether they're on the road or simply paying a bill from a foreign vendor, Capital One Spark 1% Classic Card cardholders don't have to pay foreign transaction fees. In contrast, some cards charge as much as 3% for payments in foreign currencies, or payments that route through foreign banks. This can tack on as much as $60 on purchases of $2,000, an extra fee that really adds up if you make frequent purchases from overseas suppliers.

Learn more: Best No Foreign Transaction Fee Credit Cards

$0 annual or employee card fees

Credit cards tend to charge annual fees -- either to make up for expensive perks, or to make up for high-risk cardholders. Many credit-building cards fall into the latter category. However, the Capital One Spark 1% Classic Card is a fair-credit card that doesn't charge an annual fee, a nice perk, especially since the card also earns cash back.

Employee cards also carry no annual fees. You can assign, track, and set spending limits for employee cards. Purchases on employee cards earn 1% cash back, too.

Learn more: Best No Annual Fee Credit Cards

What could be improved

This card has its drawbacks, though none are unusual.

No sign-up bonus

This card is geared toward business owners with lower spending needs and credit scores, which generally means fewer rewards perks. So, while the Capital One Spark 1% Classic Card does earn purchase rewards in the form of 1% cash back, it's noticeably lacking a sign-up bonus. A big part of the value in rewards credit cards is the bonus, so the lack is a big drawback. However, this seems to be par for the course with cards for average credit.

No 0% intro APR offer

The card doesn't offer an introductory rate on purchases or balance transfers. Top 0% intro APR cards offer no interest for a year or more, which can really help with large purchases paid off over time. Given the Capital One Spark 1% Classic Card's focus on business owners with average credit, we'd see a 0% intro APR promo as a big perk, even if it was just for a few months.

That said, few cards for lower credit score profiles come with intro APR deals, and many users will likely get more benefit from the Capital One Spark 1% Classic Card's 1% cash back and its lack of foreign transaction fees.

Personal guarantee required

If you're looking at the Capital One Spark 1% Classic Card, you likely have credit that needs a little work. But why does personal credit matter for a business credit card? The personal guarantee is why. That's a clause in your contract that says you, as the business owner, agree to be as liable for your card account as your business itself is. In other words, if your business can't pay its card debt, you are personally responsible for paying the balance. If you default on your business card, your personal credit could be at risk.

High interest rate

The Capital One Spark 1% Classic Card has a higher-than-average APR on purchases and balance transfers. And that APR isn't dependent on your qualifications. Like the rate on most credit cards, it varies based on the prime rate, but there's no range of potential APRs; everyone gets the same high APR. While a high APR isn't unexpected for a fair-credit card, this means carrying a balance can get expensive quickly.

Suggested credit score

For the best chance of approval, you need to have at least fair credit, which typically means a FICO® Score of 580 or higher. This card is one of few business credit cards with such lenient credit requirements. That said, your credit score isn't the only variable Capital One considers. The bank looks at your entire credit history. Your business's credit history, revenue, and how long it's existed also play roles.

The Capital One Spark 1% Classic Card is right for you if:

The Capital One Spark 1% Classic Card doesn’t have quite as many perks and rewards as its Capital One siblings or many competing business credit cards, but it serves a valuable purpose. Not many other business credit cards welcome applicants with fair credit, and offer rewards without charging an annual fee. So if you have business income and need to work on your credit, the Capital One Spark 1% Classic Card could be worth a look. If you have good credit and want a more rewarding option, take a look at our list of credit card reviews for a better fit.

Our credit card methodology

At Motley Fool Money, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.

We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how Motley Fool Money rates credit cards.

FAQs

  • The exact amount a consumer is approved for depends on criteria like income, credit score, payment history, and other factors determined by Capital One. The minimum credit line is $300, though.

  • No, the Capital One® 1% Classic Card is not a metal credit card.

  • This card is a Visa.