If you own a small business and want solid travel rewards, a $0 annual fee, and extra time to pay off a big expense, the Capital One® Spark® Miles Select for Business is right up your alley. Let’s take a look at the details.
Capital One® Spark® Miles Select for Business: Benefits and basics
Unlike many business credit cards that offer a slew of bonus categories, the Capital One® Spark® Miles Select for Business gives a simple 1.5 miles per dollar spent, regardless of where you spend it. That’s a solid rewards rate for a card with a $0 annual fee.
The card also offers a sign-up bonus that can give you a head start on your next vacation or business trip: Earn a one-time bonus of 20,000 miles once you spend $3,000 on purchases within the first 3 months.
Here are a few other things that stand out about the card.
introductory apr deal
Whether you have a large upcoming business expense or you expect your cash flow to be irregular for the next few months, the Capital One® Spark® Miles Select for Business can help, offering 0% on purchases until January 2017, and then the ongoing APR of 13.24% - 21.24% (Variable).
That should give you some time to pay off a good chunk of your balance, if not all of it, interest-free.
flexible redemption
The Capital One® Spark® Miles Select for Business earns Capital One miles, which are worth 1 cent apiece if used for travel. You can redeem your rewards either by booking travel directly through Capital One’s travel platform, or by paying for travel with your card and using the Purchase Eraser tool to receive a statement credit for all or part of the purchase.
There is no minimum redemption amount for a full travel statement credit, but a 2,500-mile minimum does exist for partial redemptions.
good for international travel
Like all Capital One cards, the Capital One® Spark® Miles Select for Business has no foreign transaction fee. It’s also a Visa card, which means you likely won’t run into problems with overseas acceptance.
Capital One® Spark® Miles Select for Business: Pitfalls and other possibilities
Like all credit cards, the Capital One® Spark® Miles Select for Business isn’t for everyone. Let’s take a look at some of the card’s drawbacks.
no bonus categories
The Capital One® Spark® Miles Select for Business’ 1.5% rewards rate is better than average, but you can earn more if your business spends a lot in certain categories.
The SimplyCash® Business Card from American Express, for example, offers 5% cash back at U.S. office supply stores and on wireless telephone services purchased directly from U.S. service providers; 3% cash back on the category of your choice from a list of select categories; and 1% cash back on other purchases. The 5% and 3% categories apply to purchases up to $25,000 per year.
The card also offers a decent sign-up bonus: Limited Time Offer: You can get a $250 statement credit after you spend $5,000 on qualifying purchases on the Card within the first 6 months of Card Membership. Plus, you’ll get a $0 annual fee and an introductory APR deal: 0% on Purchases for 9 months, and then the ongoing APR of 12.49% - 19.49% Variable.
The SimplyCash® Business Card from American Express may offer better rewards for some business owners, but it isn’t a great travel card. Not only does it charge a 2.7% foreign transaction fee, but you may run into acceptance issues overseas because it’s an American Express card.
big spenders can get more miles
If you’re a small operation with low expenses, the Capital One® Spark® Miles Select for Business is a great card to have. But if your business spends more than $1,000 per month, you may want to consider the Capital One® Spark® Miles for Business. The card offers 2 miles per dollar spent, no foreign transaction fee, and a solid sign-up bonus: Earn a one-time bonus of 50,000 miles once you spend $4,500 on purchases within the first 3 months.
The card doesn’t have a 0% APR promotion, and it comes with an annual fee: $0 intro for first year; $59 after that. If you spend more than $1,000 per month, however, you’ll get more value from your rewards with the Capital One® Spark® Miles for Business, even taking into account the annual fee.
a cash-back card offers more flexibility
If you want the benefits of no foreign transaction fee and wide international acceptance, but don’t want to be tied down to using your rewards only for travel, you’ll want to check out the Capital One® Spark® Cash Select for Business.
The card offers 1.5% cash back on all purchases, a $0 annual fee and a comparable sign-up bonus: Earn a one-time $200 cash bonus once you spend $3,000 on purchases within the first 3 months.
What’s more, you’ll get a decent introductory APR deal: 0% on purchases until January 2017, and then the ongoing APR of 13.24% - 21.24% (Variable).
Is the Capital One® Spark® Miles Select for Business right for me?
The Capital One® Spark® Miles Select for Business is a solid credit card for small businesses with low expenses. Its high ongoing rewards rate for a $0 annual fee is hard to beat among business credit cards.
There may be situations, however, where another business card is a better option. Make sure to review all business credit card options before making your final decision.
Ben Luthi is a staff writer at NerdWallet, a personal finance website. Email: bluthi@nerdwallet.com. Twitter: @benluthi.
Image via iStock.
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