[Update: Some offers mentioned below have expired. You can view the current offers from our partners here — Capital One Spark Classic for Business. Disclosure: Cards from our partners are mentioned below.]
There are always plenty of small business credit cards available for those with excellent credit. Hey, even if you have only “good” credit, you’ve got options. But fair, or average, credit is like the Bermuda Triangle of credit scores. There are few decent options and it’s almost like you don’t exist in the eyes of credit card issuers.
I just reviewed the Capital One Spark Classic for Business, which is targeted especially for owners who want a cash back credit card but who don’t qualify for the elite group of business cards. There are some things to really like about the card.
- You earn 1 percent cash back for every $1 spent. There’s no limit to the amount of cash you can earn and your cash rewards don’t expire. Like other Capital One rewards programs, redeeming your rewards is easy. You can redeem your cash anytime you wish either by phone or online. Or you can let the cash accumulate and Capital One will automatically send you a check each year.
- You get management tools that make business life so much easier, such as year-end itemized reports.
- You can get cards for your employees at no additional cost.
- There are no foreign transaction fees. If you travel overseas on business, this can save you a bundle.
- There’s no annual fee.
Now, you knew there was a downside, right? You can’t expect a low APR on a card for fair credit. The Capital One Spark Classic for Business credit card carries a 22.9 percent (V) APR. So this card can be a good financial tool for you as long as you don’t carry a balance. Use this card responsibly and over time, you’ll see your credit history improve. Your goal is to get your credit up into the good-to-excellent credit score range so you can qualify for a rewards card with better terms and benefits.
Another downside to business cards is that they aren’t covered by the Credit CARD Act of 2009, which protects consumers against sudden rate increases among other things. Capital One has adopted some of the CARD Act provisions for its business cards. But this is voluntary and not legally required, so be aware that this could change without warning.