Starting and running a business is a challenging task and typically requires a great deal of capital. Getting a credit card solely for your new business is a bit of a no brainer, but which one will work best for you?
Both the Chase Ink Card and the Capital One Spark Card are solid business credit cards and both offer cash-back rewards and various bonuses. While similar in some ways, there are a few key differences to consider when selecting the card that’s right for you and your business.
The types of items you need to purchase for your business should weigh heavily when finding the right card, as should the annual percentage rate (APR), special bonuses and fees.
Let’s take a look at the details for each of these cards and consider the pros and cons.
This card has no annual fee and good cash-back rewards, though if you don’t spend a lot on certain categories, it may not make as much sense for your business. But if your business spends the bulk of its money on office supplies or cable/telecom, then it can be a very lucrative card to have.
- No annual fee
- $300 cash back bonus if you spend $3,000 on purchases during the first three months.
- Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on cellular phone, landline, internet and cable TV services
- Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants
- Earn 1% cash back on all other purchases
- Cash-back rewards do not expire as long as your account is open
- Get employee cards at no additional cost
- 0% introductory APR on all purchases and transfers for 12 months
- After the kintroductory period, the interest rate may be as low as 13.74% depending on your creditworthiness
- 25.49% APR for cash advances
- APR is raised to 29.99% if you are late with a payment or a payment is returned
- This penalty APR applies to your account indefinitely after it is assigned
- Balance transfer fee and cash adva
- nce fee of either $5 or 5% of the amount of each transfer, whichever is greater.
- Balance transfers cannot exceed your credit limit or $15,000, whichever is greater
- You cannot transfer a balance from any other Chase accounts
- 3% foreign transaction fee, making it not a great card for travel
- Late payment fees range from $15 to $35 depending on your balance
This business card is a no-nonsense, simple cash-back card. There are no categories to worry about. You get 2% cash back on all business purchases. Period. However, this card is more difficult to acquire since it is only available to people with excellent credit. The Chase Ink card has a bit more flexibility, though still requires good to excellent credit.
Despite the excellent credit requirement, this card has a higher interest rate than the Chase Ink card, which is an important factor to consider when applying for any card, but particularly for one that already has a high credit standing.
Another downside: There is no special introductory rate. While the Chase Ink card provides a year of 0% APR on purchases and balance transfers, the Spark card starts at 17.49% and stays there.
Let’s take a look at what’s good and bad about this card.
- No annual fee for the first year
- $500 cash bonus once you spend $4,500 on purchases within the first three months
- 2% cash back on all purchases for your business, no category restrictions
- Add employee cards at no additional costs and earn rewards from their purchases too
- $0 fraud liability if your card is lost or stolen, and you get real-time alerts of fraud attempts via text, email or phone
- No transfer fees
- After the first year, there is a $59 annual fee
- 23.49% APR for cash advances
- Must have excellent credit to qualify
- APR starts at 17.49%
- No special introductory APR
- APR is raised to 29.99% if you are late with a payment
So which of the two cards is better for your particular business? If you plan to spend the bulk of your money on office supplies or cable/telecom costs, then the Chase Ink card will serves you well. But don’t forget the $25,000 spending limit. If your company will need to spend more in these two categories, then it may not be the best card for you.
If your company won’t be spending a lot on office supplies and cable/telecom costs, then the Capital One Spark Card may better suit your needs. This card has no category restrictions and simply pays the user 2% cash back on any type of purchase, no limits.
There are other factors to consider, of course, including APR, the annual fee of the Spark Card and more, but the type of supplies that fuel your business should be the deciding factor when choosing between these two cards.
For a breakdown of other business credit cards and their features, check out check out SuperMoney’s reviews.
Heather Skyler writes about business, finance, family life and more. Her work has appeared in numerous publications, including the New York Times, Newsweek, Catapult, The Rumpus, BizFluent, Career Trend and more. She lives in Athens, Georgia with her husband, son, and daughter.