Why Capital One Spark Cash is good for your side business

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Capital One Spark Cash for Business is no longer available to new applicants. For alternative cards, see our article on the best business cards.

Side activities are a powerful way to generate extra income outside of your 9 to 5 job. But with that extra money comes extra responsibilities including income and expenses that you have to keep up with. If you don’t keep track of your income and business costs, you may owe a lot of money at tax time.

This is where a business credit card can help.

Jannese Torres-Rodriguez recently transitioned from her 9- to 5-year entrepreneurship to full-time entrepreneurship and plans to achieve a net worth of $ 1 million by 2025 through her activities and investments.

“When I did my taxes for 2020, I realized I still had a lot of business expenses through my personal credit cards,” says Jannese Torres-Rodriguez, a NextAdvisor contributor who is also an entrepreneur and expert in lateral turmoil with multiple sources of income. through its businesses. “Getting a business credit card has made it much easier for me to reconcile my purchases and not have to go through my statements and figure out what is a personal expense versus a business expense. “

One of the cards she uses for her business expenses is the Capital One Spark Cash for Business, which has no annual fee for the first year ($ 95 thereafter) and offers an unlimited 2% cashback for every dollar you make. you are spending for your business. It is one of our picks for the best business cards.

While the right credit card for your side business will depend on your goals and what you’re spending, “I recommend you take a look at Capital One if you’re looking for an entry point into the world of business credit,” says Torres-Rodriguez. “I don’t have the discipline to determine which category gets the most points this quarter. I just like the simple approach where you get 2% back on everything.

Why Capital One Spark Cash for Business Makes Sense to Most Secondary Scammers

Capital One Spark Cash for Business is primarily suitable for scammers and freelancers who want a straightforward and straightforward rewards program and whose spending does not fall within traditional business card categories.

Pro tip

If you have a lot of common business expenses, like travel, office supplies, and advertising, you may find more value with a card like the Ink Business Cash® credit card, which offers higher cash back in these categories.

It can also help you streamline your budget and simplify your bookkeeping, and you don’t need to have a storefront, employees, or LLC to benefit from it. The card offers extremely detailed year-end summaries of your purchases, and you can upload your records to popular business accounting programs such as Quicken, Quickbooks, and Excel. These features can be particularly useful for planning your business in advance.

“Business credit cards make the tax filing and accounting process a lot easier,” says Torres-Rodriguez. “I think it not only helps you predict what your spending will be for the next year, but it can also give you a 30,000-foot view of what you’ve spent too much money on and where you can bring in. changes, ”says Torres-Rodriguez.

In addition to 2% cash back for everything you buy with Spark Cash for Business, you’ll earn a $ 500 cash bonus if you spend $ 4,500 on purchases within three months of opening the account. Just make sure you spend enough to recoup the annual fee of $ 95, at least $ 4,750 per year (or $ 395 per month) to be exact, according to NextAdvisor’s calculations. You’ll also get a few additional perks with Spark Cash for Business, including roadside assistance, extended warranty, and your choice of monthly due date.

“The rewards come from the investments I’m already making,” says Torres-Rodriguez. “And that’s free money.”

  • Introductory bonus:
  • Annual subscription :

    $ 0 introduction for the first year; $ 95 after that

  • Regular APR:

    20.99% (variable)

  • Recommended credit:

    670-850 (good to excellent)

  • Learn more external link icon on the secure site of our partner.
  • Introductory bonus:
  • Annual subscription :

    $ 0

  • Regular APR:

    13.24% – 19.24% Variable

  • Recommended credit:

    670-850 (good to excellent)

  • Learn more external link icon on the secure site of our partner.

How to Use Capital One Spark Cash for Businesses Responsibly

Using a business credit card strategically requires a foundation of healthy credit habits, such as paying your balance in full and on time each month.

“Know why you are using credit and know that you are using it strategically, not just because you can’t afford to pay for your business expenses,” says Torres-Rodriguez.

With the Capital One Spark Cash for Business, you will especially want to avoid carrying a balance as it carries a high variable APR of 20.99%. A high interest debt balance can quickly wipe out any rewards you earn, and you could find yourself in a financial hole that is hard to get out of.

“You have to respect credit, whether for your personal or business use. Make sure you don’t buy more than you can afford to pay. Make sure your income matches the amount you use on your line of credit, ”says Torres-Rodriguez.

Torres-Rodriguez, who owns personal credit cards with five-digit credit limits, said she was surprised when she applied for Capital One Spark Cash for Business and only got one credit limit initial $ 2,500.

“If you think you’re going to get that huge credit limit because you have a great credit rating, you don’t. You start from scratch when building your business credit, and you need to prove the reliability and reliability of your business.

After six months, she requested a credit limit increase and finally applied for another business credit card. “My limit increased over time, but I had to be patient,” she says.

It is generally easier to get approved for a Capital One card than other credit cards, as they tend to cater for people who are rebuilding their credit or leaving with no credit history. To increase your chances of approval, you must have a credit score of at least 670 before applying.

But Torres-Rodriguez recommends waiting to apply until your side business generates recurring income and you’re ready to take on that extra financial responsibility.

“I wouldn’t open a business credit card until I have a recurring income that I know I’m going to be able to rely on to pay off the bills I’m going to charge,” she says. “It adds a level of complexity to your overall financial picture now that you have to manage your business and personal expenses. Don’t overdo it.

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