As a small business owner since 2009, I've been looking for a new business credit card to take advantage of bonus rewards. I've always know that Capital One business credit cards are some of the best. But I haven't owned one until recently.
I've currently got the Chase Ink Business Cash card, which provides a $750 sign up cash bonus after spending $7,500 within three months of opening a new account. I'm already a cardholder, so I can't take advantage of the bonus, but you can if you're new to Ink.
Capital One also offers extra bonuses for new card holders from time to time. For example, if you spend $4,500 over the first three months, you can get $500 with the Spark Cash card.
Capital One Business Credit Cards: Do You Have A Big Enough Business?
Spending thousands of dollars is obviously not easy for every business. But having a great small business credit card is important. There are many benefits of a business credit card.
Capital One often has plenty of bonus rewards credit cards to choose from as well. Creating great credit cards is all Capital One has been doing since 1994.
Capital One's latest Spark bonus offers made me do a deep dive into my own business expenses to see how much I've spent over the past six months, and how much I could spend over the next six months.
I just spent about $60,000 on home appliances for remodeling three bathrooms and a kitchen at one of my SF properties. That would have been the perfect project for the Spark Cash card, since rental property is a business. But I'm in money saving mode right now, hence part of the reason why I'm looking for all these bonuses.
I could spend lots of advertising money to promote Financial Samurai. But that's not what I do. And I'm certainly not going to force myself to spend money on my business just for the sign-up rewards. Spending needs to be strategic and necessary to boost growth.
Therefore, make sure that your business is large enough to reach the minimum amount of the sign up offer if that's all your after. If your business is large enough, then the Spark cards are a good choice.
Great Rewards For Spark Miles And Spark Cash Cards
Capital One Business credit cards provide great benefits. Besides being able to earn bonus miles on the Spark Miles card or bonus cash on the Spark Cash card, you can also earn 5X miles per dollar on hotels and rental cars booked via Capital One travel.
5X miles per dollar is one of the highest rewards multipliers today. The usual rewards multiplier is only 2X – 3X miles per dollar based on our research of over 100 credit cards.
Further, each Capital One mile is valued at around 1.3 cents to 1.4 cents each. Therefore, if you earn 5X on hotel and rental car spending, you're really getting 6.5 – 7 cents per dollar, which is even better.
Spark Miles or Spark Cash Card?
Given my family and I don't travel as much given we have a toddler, I'm partial to the Spark Cash card. Before our son was born in 2017, we'd fly internationally twice a year and domestically 3-5 times a year, which would make the Spark Miles card more appropriate.
Let's look at the differences between these two great business rewards credit cards.
|Spark Miles||Spark Cash|
|Sign-up bonus:||50,000 miles after spending $4,500 in the first three months||$500 bonus after spending $4,500 in the first three months|
|Rewards rate:||5x miles on hotels, rental cars booked via Capital One Travel; 2x miles on everything else||2% cash back on every purchase, simple as pie|
|Redemption options:||Redeem as a statement credit for travel purchases, or transfer to one of Capital One’s transfer partners||Redeem as a statement credit or a check|
|Annual fee:||$95, waived the 1st year||$95, waived the 1st year|
If you travel 2X or more times a year, the Spark Miles card is probably your better bet. The miles you earn are equivalent to closer to 2.8% cash back versus the 2% flat cash back on the Spark Cash card. The Spark Miles also offers a TSA PreCheck/Global Entry application fee credit (up to $100) that isn’t available on the Spark Cash.
Standing in the long check-in lines at the airport have become a real epidemic. It is totally worth it for me and especially those traveling with young children to use the TSA PreCheck/Global Entry program.
Further, Capital One is partners with over 10 airlines where you can transfer your miles at a 2-to-1.5 ratio.
On the flip side, it is nice to have the simplicity of 2% unlimited cash back on all purchases. Most cash back credit cards offer at most 1.5% unlimited cash back. Therefore, 2% is quite a premium.
Capital One Business Cards Are Solid
For those still on the fence between the Spark Miles or Spark Cash card, I don't think you can go wrong with either. If you fly more than twice a year for business, then get the Spark Miles card. If you like the simplicity of cash and getting 2% cash back on all purchases, get the Spark Cash card.
Here are some other attributes to consider before getting one of the cards, as there is an annual fee after the first year. Qualify for at least three, and you're good to go.
- Your business is over one year old and growing.
- Each year you generate at least $50,000 in revenue and growing.
- In six months you plan to spend at least $50,000 on your business.
- You like to keep business expenses all in one place.
- You're a Capital One client already and like the experience.
- Minimizing your taxable income with legitimate business expenses is priority.
- Due diligence before doing anything financially is important to you.
- You always pick up free money on the street.
This elevated bonus for both cards is only temporary. When the door is open, you should walk through to the other side. Why not since you’re getting at least $2,000 in value no matter which card you apply for, and more like $3,000 in value after you spend the $50,000 within six months.
Capital One Business credit cards truly are some of the best around.
I'm personally signing up for the Chase Ink Business Unlimited card because it offers $750 cash back after spending just $7,500 within three months. I've got some business car maintenance to take care of and furniture to buy for my new home office.
Related post: Why Online Business Valuations Will Skyrocket
About the Author: Sam worked in investment banking for 13 years at GS and CS. He received his undergraduate degree in Economics from The College of William & Mary and got his MBA from UC Berkeley. In 2012, Sam was able to retire at the age of 34 largely due to his investments that now generate roughly $250,000 a year in passive income. He spends most of his time playing tennis, figuring out the best rewards offers, and taking care of his family.
Financial Samurai was started in 2009 and is one of the most trusted personal finance sites on the web with over 1.5 million pageviews a month.