Note: You can obtain a business credit card without owning a traditional business. Many cards, including those we’re comparing today, primarily consider your personal credit history for approval, rather than business credit scores, business structure, or revenue. This means freelancers and individuals with side gigs can also qualify for these cards.
When selecting a credit card for your business, it’s essential to evaluate not only the rewards and benefits but also the annual fees and overall value. In this comparison, we’re focusing on two popular options that both carry a $95 annual fee: the Capital One Spark Miles for Business and the Ink Business Preferred® Credit Card. Each card offers unique features tailored to different business needs, so let’s dive into a side-by-side analysis to help you make an informed decision.
Overview
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Intro Bonus: 50,000 miles (worth $500 in travel) after spending $4,500 in the first 3 months.
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Reward Rates: 5X miles on hotels, vacation rentals, and rental cars booked through Capital One Travel; 2X miles on all other purchases.
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Annual Fee: $0 intro for the first year, then $95.
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APR: 26.24% Variable.
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Special Features: Transfer miles to over 15 loyalty programs; up to $120 credit for TSA PreCheck® or Global Entry.
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Intro Bonus: 90,000 bonus points after spending $8,000 in the first 3 months.
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Reward Rates: 3X points on travel and select business categories (up to $150,000 spent per anniversary year); 1X points on all other purchases.
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Annual Fee: $95.
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APR: 21.24% - 26.24% Variable.
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Special Features: Points are worth 25% more when redeemed for travel through Chase Travel℠; extensive travel and purchase protections.
Rewards Structure
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Travel Purchases: Earn 5X miles on hotels and rental cars booked through Capital One Travel. This is particularly beneficial if you frequently use Capital One’s travel portal.
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Other Purchases: 2X miles on all other purchases ensures that you’re rewarded for everyday business expenses as well.
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Our Take: The high rewards rate for travel booked through Capital One Travel makes this card an excellent choice if you can align your bookings with their platform. 2X miles on every purchase sets a good standard for purchases outside of categories with increased rewards. The flexibility in using miles for a range of travel-related expenses, coupled with no expiration on miles, provides significant long-term value.
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Travel & Business Categories: Earn 3X points on travel, shipping, internet, cable, phone services, and advertising (up to $150,000 per year). This broad category coverage can significantly enhance your rewards if you spend in these areas.
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Other Purchases: 1X point on all other purchases ensures you still earn rewards on everything else.
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Our Take: This card’s focus on a wide array of business categories makes it versatile. If your business expenses span multiple areas, especially those covered at 3X, you’ll find substantial rewards accumulation. The 25% increase in travel redemption value through Chase Travel℠ adds a premium touch to your travel rewards.
Annual Fees
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First Year: $0.
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After First Year: $95.
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Our Take: The introductory fee waiver is a nice perk, but it’s important to weigh the annual fee against the rewards you’ll earn. If your business benefits significantly from travel rewards, the fee can be justified.
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Annual Fee: $95.
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Our Take: This fee is standard for premium business cards, and the value derived from the high intro bonus and enhanced rewards can easily offset it. Plus, the ability to downgrade to a $0 annual fee card after the first year if needed provides added flexibility.
APR
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Variable APR: 26.24%.
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Our Take: The high APR means carrying a balance can be costly, which is a crucial consideration if you anticipate not paying off your balance in full each month.
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Variable APR: 21.24% - 26.24%.
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Our Take: While the APR range overlaps with the Capital One card, it’s slightly lower at the minimum end. Still, both cards can be expensive if balances are carried over, making prompt payments essential.
Sign-Up Bonus
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Bonus: 50,000 miles after spending $4,500 in the first 3 months.
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Our Take: This bonus provides a solid start, translating to $500 in travel rewards, which is substantial but lower compared to the Ink Business Preferred® Credit Card. The required spend is significantly lower, good for businesses that cannot meet high spend requirements in 3 months.
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Bonus: 90,000 bonus points after spending $8,000 in the first 3 months.
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Our Take: The impressive bonus is one of the card’s strongest features. The points’ value, especially when redeemed through Chase Travel℠, offers considerable immediate value and is a significant draw for businesses with higher spending capabilities.
Additional Benefits
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Employee Cards: Free additional cards for employees, which can boost reward accumulation.
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TSA PreCheck®/Global Entry Credit: Up to $120 every four years helps streamline travel.
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Foreign Transaction Fees: None.
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Our Take: The no-foreign-transaction-fee feature is advantageous for international business, and the TSA PreCheck®/Global Entry credit is a valuable perk for frequent travelers.
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Employee Cards: Free additional cards and protection for employee misuse.
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Travel Protections: Comprehensive coverage including trip cancellation/interruption insurance, auto rental collision damage waiver, and purchase protection.
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Points Transfer: 1:1 transfer to travel partners for potentially higher value.
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Foreign Transaction Fees: None.
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Our Take: The extensive travel protections and points transfer options add significant value, especially for businesses with high travel needs and those seeking premium travel experiences.
Considerations
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Pros:
- High rewards rate on travel bookings through Capital One Travel.
- Flexible mile redemption with no expiration.
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Cons:
- High variable APR.
- Best suited for businesses with significant travel expenditures.
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Our Take: Ideal for businesses that frequently book through Capital One Travel and seek flexibility in redeeming rewards without worrying about mile expiration. Also ideal for business that spend outside of special rewards categories or prefer a straightforward rewards structure.
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Pros:
- Large sign-up bonus and high rewards in multiple business categories.
- Enhanced travel redemption value and extensive protections.
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Cons:
- $150,000 cap on higher rewards categories.
- Higher spend requirement for the bonus.
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Our Take: Perfect for businesses with diverse spending who can leverage the substantial sign-up bonus, high reward rates in specific categories, and extensive benefits. The card’s versatility and additional protections make it a powerful tool for optimizing business expenditures.
Conclusion
Both the Capital One Spark Miles for Business and the Ink Business Preferred® Credit Cards offer substantial rewards and benefits for businesses, each justifying the $95 annual fee in different ways.
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Capital One Spark Miles for Business: Best suited for frequent travelers who can benefit from high rewards on travel bookings through Capital One Travel and value flexible mile redemption options or for businesses that don't frequently spend in higher reward categories.
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Ink Business Preferred® Credit Card: Ideal for businesses with varied expenses and those who can take advantage of the high sign-up bonus, versatile rewards categories, and enhanced travel benefits.
Your choice will ultimately depend on your business’s specific needs, spending habits, and how you prioritize rewards and benefits. Both cards provide strong value, so consider which features align best with your business objectives.
To dive deeper into the specifics of each card including detailed benefits check out our full articles on each card below:
Editorial Disclaimer: Opinions, reviews, analyses, & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.
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