Is The Capital One Spark Cash Plus Worth The $150 Annual Fee? Bankrate Caret RightMain Menu Mortgage Mortgages Financing a home purchase Refinancing your existing loan Finding the right lender Additional Resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Bank Banking Compare Accounts Use calculators Get advice Bank reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Credit Card Credit cards Compare by category Compare by credit needed Compare by issuer Get advice Looking for the perfect credit card? Narrow your search with CardMatch Caret RightMain Menu Loan Loans Personal Loans Student Loans Auto Loans Loan calculators Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Invest Investing Best of Brokerages and robo-advisors Learn the basics Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Home Equity Home equity Get the best rates Lender reviews Use calculators Knowledge base Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Loan Home Improvement Real estate Selling a home Buying a home Finding the right agent Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Insurance Insurance Car insurance Homeowners insurance Other insurance Company reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Retirement Retirement Retirement plans & accounts Learn the basics Retirement calculators Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Introduction to the Capital One Spark Cash Plus Credit Card Advertiser Disclosure
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FG Trade/Getty Images July 08, 2022 Checkmark Bankrate logo How is this page expert verified? At Bankrate, we take the accuracy of our content seriously. "Expert verified" means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced. Their reviews hold us accountable for publishing high-quality and trustworthy content. Holly Johnson writes expert content on personal finance, credit cards, loyalty and insurance topics. In addition to writing for Bankrate and CreditCards.com, Johnson does ongoing work for clients that include CNN, Forbes Advisor, LendingTree, Time Magazine and more. Experience: is an editor at CreditCards.com specializing in product news and recommendations. Prior to joining the financial services space, she worked as a copywriter and content writer for a software company in the automotive industry. Kaitlyn is passionate about personal finance, particularly how Gen Z and young millennials grapple with finance now that they are beginning to take on debt and make larger purchases. She hopes her writing demystifies the world of personal finance, making financial advice accessible and comprehensible to everyone. She believes that no one should be discouraged from taking ownership of their own finances due to a lack of financial literacy. Bankrate logo The Bankrate promise
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Welcome bonus: earn up to a $1,000 cash bonus — $500 when you spend $5,000 in the first three months and an additional $500 when you spend $50,000 in the first six months Rewards rate: Unlimited 2 percent cash back on all purchases and 5 percent cash back on hotels and rental cars booked through Capital One Travel Annual bonus: Earn an annual cash bonus of $200 every year you spend $200,000 or more on purchases Annual fee: $150 Regular APR: N/A (It’s a , which requires you to pay your balance in full each month) Is the Capital One Spark Cash Plus worth the annual fee
Generally speaking, the is for big business spenders who have more than $50,000 in business purchases to charge each year. This is because it’s a charge card and the sign-up bonus is tailored to business owners who can spend at least $50,000 on purchases within the first six months. But is the $150 ? There’s no concrete answer, but you should probably take the time to compare it to a similar business credit card from Capital One, like the . This card doesn’t charge an annual fee, but it offers a lower rewards rate of 1.5 percent back on all purchases. New cardholders can also earn a welcome bonus of $500 after they spend $4,500 on purchases within three months of account opening. Capital One Spark Cash Plus vs Capital One Spark Cash Select spending example
If you’re trying to decide whether the Capital One Spark Cash Plus is worth the $150 annual fee, it may be helpful to consider a spending example. Imagine your business has a lot of expenses each month for payroll, inventory and normal operations. As a result, you charge $20,000 in purchases per month ($240,000 per year) to your card. So, for the first year, you’d earn a total of $5,820 in rewards, which breaks down as: Cash back: $4,800 Welcome bonus: up to $1,000 ( $500 once you spend $5,000 in the first 3 months, and $500 once you spend $50,000 in the first 6 months of account opening) Annual bonus: $200 (surpassed the $200,000 annual spending threshold) Subtract the $150 annual fee for the card and you’d still net $5,670 in the first year. No matter how you look at it, that’s a generous number of rewards. Now imagine you charge the same amount to the Capital One Spark Cash Select, which has no annual fee and earns 1.5 percent in cash back. With this card, your first-year rewards would total $4,100, which breaks down as: Cash back: $3,600 Welcome bonus: $500 (spend $5,000 within the first three months) In this case, you avoid the $150 annual fee, but you net $1,570 less in rewards along the way. We found that the “sweet spot” for choosing between these two cards is $30,000 in annual spending per year. If you spend that much on the Capital One Spark Cash Plus, you will earn $1,100 in rewards: Cash back: $600 Welcome bonus: $500 (when you spend $5,000 in the first three months) Deduct the $150 annual fee and you’ll still receive $950 in cash back. Spending $30,000 in a year on the Capital One Spark Cash Select, you would earn the same $950 in rewards: Cash back: $450 Welcome bonus: $500 (when you spend $4,500 within the first three months) In that case, business owners who spend around $30,000 per year should opt for the Capital One Spark Cash Select. However, even though $30,000 is the magic number for the two cards to match rewards earned in a year, cardholders angling for the Capital One Spark Cash Plus should spend around $16,667 each month to best maximize the card. Doing so you can earn the $200 annual cash bonus, one of the best ways to overcome the card’s $150 annual fee. Other business credit cards to consider
Forking over $150 per year to earn 2 percent cash back seems like a lot to ask if you don’t spend a ton of money on your card each year, and that’s especially true when you consider the fact that other business credit cards offer a similar rate with no annual fee. American Express Blue Business Cash Card
The has no annual fee and offers 2 percent cash back on the first $50,000 you spend each year (then 1 percent back). Plus, the card offers a $250 statement credit when you spend $3,000 on purchases within three months of account opening. Ink Business Unlimited Credit Card
Another option is Chase’s . This card has no annual fee, and it offers a flat 1.5 percent cash back on all purchases. Plus, cardholders can earn $900 in bonus cash after spending $6,000 on purchases within three months of account opening. Capital One Spark Miles for Business
This is Capital One’s business credit card geared toward individuals who travel, and the $95 annual fee is waived the first year. With the , cardholders earn 2X miles for each dollar they spend, and they can earn 50,000 bonus miles after spending $4,500 within three months of account opening. This card also comes with up to a $100 credit for , and you can redeem miles for travel expenses or transfer them to a Capital One airline or hotel partner. The bottom line
Is the Capital One Spark Cash Plus worth its $150 annual fee? That depends on how much you spend on your card each year. If the answer is around $200,000 or more, you will probably have an easier time maximizing your reward with this card. However, business owners who spend less than $30,000 per year would probably be better off with the Capital One Spark Cash Select — $500 Cash Bonus, or another or business credit card altogether. Whatever you do, make sure you compare all your options before you decide. SHARE: Holly Johnson writes expert content on personal finance, credit cards, loyalty and insurance topics. In addition to writing for Bankrate and CreditCards.com, Johnson does ongoing work for clients that include CNN, Forbes Advisor, LendingTree, Time Magazine and more. Experience: is an editor at CreditCards.com specializing in product news and recommendations. Prior to joining the financial services space, she worked as a copywriter and content writer for a software company in the automotive industry. Kaitlyn is passionate about personal finance, particularly how Gen Z and young millennials grapple with finance now that they are beginning to take on debt and make larger purchases. She hopes her writing demystifies the world of personal finance, making financial advice accessible and comprehensible to everyone. She believes that no one should be discouraged from taking ownership of their own finances due to a lack of financial literacy.