Business owners who compare business credit cards face a common conundrum– they crave points they can redeem for travel, but may be put off by the egregious annual fees some business cards charge. Fortunately, at least one business credit card offers valuable rewards, a simple redemption process, and an annual fee nearly any business owner can stomach.
If you’re a business owner who is in the market for a new credit card, it might be time to consider the Capital One® Spark® Miles for Business credit card. Here are the card’s basic details:
Capital One® Spark® Miles for Business
- Earn a one-time bonus of 50,000 miles - equal to $500 in travel - once you spend $4,500 on purchases within the first 3 months from account opening
- Earn unlimited 2X miles per dollar on every purchase, everywhere, no limits or category restrictions, and miles won't expire for the life of the account
- Earn 5X miles on hotel and rental car bookings through Capital One Travel℠ using a Spark Miles card
- $0 fraud liability if your card is lost or stolen
- Transfer your miles to 10+ leading travel loyalty programs like JetBlue™, Air Canada, and Emirates™
- Redeem your miles instantly for any travel-related purchases, from flights and hotels to ride-sharing services
- Fly through security with one statement credit for either the $85 TSA Pre✔® application fee or the $100 Global Entry application fee
- $0 intro annual fee for the first year; $95 after that
How the Capital One® Spark® Miles for Business Works
If you’re looking for a business credit card that is simple to use and keep track of, the Capital One® Spark® Miles for Business definitely fits the bill. This card offers a flat 2x mile for every dollar you spend, making it a smart option for any purchase. On the redemption side, you can redeem your points for travel purchases at a rate of one cent per point. That makes your 50K-mile sign-up bonus worth $500 in any type of travel you want right off the bat.
By using the card for all your business purchases, you can rack up considerable rewards over time. If your business spends an average of $4,500 per month, for example, you would earn 170,000 points worth $1,700 in travel your first year (10,000 points per month plus the signup bonus). Since there is no annual fee the first year, you can easily justify trying the card and its benefits to see what you think. And since the annual fee is only $95 after twelve months, you only need to spend $3,000 on your card annually to come out ahead in terms of rewards.
Where the Capital One® Spark® Miles for Business Shines
One of the biggest benefits of the Capital One® Spark® Miles for Business is the fact that it offers fixed-value travel credit. Unlike other loyalty programs that require you to use their points through their own travel portal, fixed-value travel credit lets you book your travel however, or wherever, you want.
You can redeem your points for airfare purchased directly from an airline, travel booked through a discount provider like Expedia or Priceline, train travel purchased anywhere, and even Uber rides. As long as your purchase is related to travel, you should have no problem redeeming your points.
The fact that you can redeem them how and where you want provides flexibility while also letting you shop around for the best price. If you find a flight cheaper on Expedia than elsewhere, for example, you can book it and redeem fewer points to cover the purchase.
Another notable advantage that comes with the Capital One® Spark® Miles for Business is the fact that it offers 2x miles for every dollar you spend. Since there are no bonus categories to keep track of and no earning caps, you won’t have to worry about when to use your card. Just use it for all of your business purchases to earn 2x miles for each dollar you spend, then redeem as you please. When it comes to travel credit cards, it doesn’t get any simpler than that.
Where the Capital One® Spark® Miles for Business Comes Up Short
While it’s hard to complain about the prospect of earning 2x miles and a big signup bonus, there are plenty of areas where the Capital One® Spark® Miles for Business comes up drastically short.
For example, while the card does offer primary auto rental coverage for cardholders and authorized users, it doesn’t come with valuable trip cancellation/interruption insurance. Other common benefits this card doesn’t offer include guaranteed returns, extended warranties, cell phone replacement coverage, or purchase protection. Since many of the top business credit cards on the market offer these perks and more, this is one area where the Capital One® Spark® Miles for Business really drops the ball.
Lastly, another area where the Capital One® Spark® Miles for Business is lacking is its rewards program. While having flexible travel credit makes it easy to book any type of travel you want, this card doesn’t let you transfer miles to specific loyalty programs like other competing cards.
Who This Card is Best For:
- Business owners who want to earn no-nonsense rewards for travel
- Individuals who don’t need a lot of cardholder perks
- Anyone who despises large annual fees
Who this card Isn’t Good For:
- Business owners who want a card with superior benefits and perks
- Someone who wants to transfer their points to hotel and airline loyalty programs
- Anyone who wants a huge signup bonus
Another Business Card to Consider: Ink Business Preferred® Credit Card
Before you sign up for a business credit card, it’s smart to consider more than one option. One specific business credit card that could be a smart alternative to the Capital One® Spark® Miles for Business is the Ink Business Preferred® Credit Card.
New Offer! Earn 100k bonus points after you spend $15,000 on purchases in the first 3 months from account opening. That's $1,250 toward travel when redeemed through Chase Ultimate Rewards®. Earn 3 points per $1 on the first $150,000 spent on travel and select business categories each account anniversary year and earn 1 point per $1 on all other purchases - with no limit to the amount you can earn. Points are worth 25% more when you redeem for travel through Chase Ultimate Rewards. You can also redeem points for travel, cash back, gift cards and more - your points don't expire as long as your account is open and get employee cards at no additional cost.
The Ink Business Preferred® Credit Card also offers myriad consumer protections and travel benefits for its cardholders. Popular perks include trip cancellation/interruption insurance, cell phone coverage for employees, purchase protection, extended warranties, primary auto rental coverage, roadside dispatch, and travel and emergency assistance services.
Finally, all these benefits and rewards come at a fairly low Annual Fee of just $95.
If you’re in the market for a business credit card, the Capital One® Spark® Miles for Business is a decent option. You’ll earn a big signup bonus along with a flat 2x miles for each dollar you spend. Even better, you’ll have a small annual fee of just $95 to worry about, and it’s waived the first year.
On the flip side, the Capital One® Spark® Miles for Business doesn’t offer a ton of benefits and its rewards program is flexible enough yet not as dynamic as others.
Is it the right card for you? Before you decide, make sure to compare several other business cards to find out what they offer in terms of their ongoing costs, perks, and benefits. If you’re willing to pay a higher annual fee starting the first year, a card like the Ink Business Preferred® Credit Card could make more sense.
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