Is the Capital One Spark Cash Plus worth the $150 annual fee?

Over the past few years, Capital One has completely overhauled its business card roster — which included the release of the Capital One Spark Cash Plus.

Since hitting the market, the Capital One Spark Cash Plus has undergone several changes of its own. This card currently offers an unlimited 2 percent cash back on all purchases, which is the highest cash back percentage among the Spark Cash lineup. The fact that it’s a charge card means there’s no preset spending limit, plus big spenders will benefit from the massive sign-up bonus and annual fee refund.

But the Capital One Spark Cash Plus does charge a $150 annual fee, which is high for a business credit card with hardly any cardholder perks.

So, the question is, is the $150 annual fee worth it? We’ll go over the details to help you decide whether the card is worth it or not.

Capital One Spark Cash Plus highlights

Welcome bonus: Earn a one-time cash bonus of $2,000 once you spend $30,000 in the first 3 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 fee refund: Get a statement credit for your annual fee each year you spend at least $150,000 on the card

Annual fee: $150

Regular APR: N/A (It’s a charge card, which requires you to pay your balance in full each month)

When is the Capital One Spark Cash Plus worth it?

Here are four situations in which the Capital One Spark Cash Plus may be worth the $150 annual fee for your small business.

Your business needs to make a large purchase

If your business is about to make a large purchase, the Capital One Spark Cash Plus is a card to consider. The $2,000 welcome offer is tailored to business owners who can spend at least $30,000 on purchases within the first 3 months. If you plan to spend around $10,000 a month on business expenses, this cash bonus makes the $150 annual fee worth it — at least for the first year.

Your business spends at least $150,000 per year

The Capital One Spark Cash Plus is a good choice for big business spenders who have more than $150,000 in business purchases to charge each year. This is because cardmembers get a refund of the card’s $150 annual fee as a statement credit each year in which they reach the $150,000 spending threshold.

Also, because the Capital One Spark Cash Plus is a charge card, you aren’t subject to a credit limit as long as you pay off the balance each month.

Consider the spending example below when deciding whether the Capital One Spark Cash Plus is worth it:

Your business needs a card without a credit limit

Businesses that regularly make large purchases or have high monthly expenses can sometimes run into issues with credit limits when using a traditional credit card. If this describes your business, the Capital One Spark Cash Plus may be worth it for you.

The Spark Cash Plus is a charge card, which means it doesn’t come with a preset spending limit — though you’re required to pay off the balance each month. So if you need the flexibility to charge large expenses each month without hitting a monthly limit, the Capital One Spark Cash Plus could be a great fit.

You prefer a flat-rate cash back card

For business owners who prefer a flat-rate cash back card, the Capital One Spark Cash Plus delivers. The card’s simple rewards structure earns you an unlimited 2 percent cash back on all purchases, which is a solid rate among top cash back credit cards. The Spark Cash Plus also offers 5 percent cash back on hotels and rental cars booked through Capital One Travel, helping businesses that require a lot of travel earn even more.

When is the Capital One Spark Cash Plus not worth it?

Although the Capital One Spark Cash Plus is a solid card for big business spenders, it isn’t the right card for every business owner — especially since it comes with a $150 annual fee. Here are some reasons why the annual fee may not be worth it.

You can’t meet the minimum spending requirement for the welcome bonus

The $2,000 welcome bonus offered by the Capital One Spark Cash Plus is a huge part of its first-year value. Yet if you can’t meet the spending requirement of $30,000 in the first 3 months your account is open, you might want to look for a card that provides a welcome offer with a smaller minimum spending requirement, instead.

For example, the Ink Business Unlimited® Credit Card from Chase offers $900 in bonus cash back after spending $6,000 on purchases within 3 months of account opening. And it offers a flat 1.5 percent cash back on all purchases, with no annual fee.

Your business spends less than $100,000 per year on expenses

If your business spends less than $100,000 a year — or about $8,333 a month — on expenses, the $150 annual fee on the Capital One Spark Cash Plus may not be worth it. Your spending would likely fall short of the minimum required to earn the welcome bonus, so you’d end up with a total of $2,000 in cash back for the year and a lower $1,850 after deducting the annual fee.

Now imagine you charge the same amount to the Capital One Spark Cash Select for Excellent Credit, which charges no annual fee and earns 1.5 percent in cash back. Cardmembers are also eligible for a $500 welcome bonus after spending $4,500 in the first 3 months of account opening. It means that, with this card, your first-year rewards could total $2,000:

• $1,500 in cash back, representing 1.5 percent of your total spending
• $500 back for satisfying the spending requirements of the welcome bonus

And the card comes with no annual fee, netting you an extra $150 in cash rewards during the first year.

You want to maximize rewards through bonus spending categories

The Capital One Spark Cash Plus is a solid card for everyday business spending, offering a flat 2 percent cash back on all purchases. Yet other business cards offer higher rewards in categories that you might already be spending in.

Take the Ink Business Cash® Credit Card, which offers 5 percent cash back on the first $25,000 in combined annual spending at office supply stores and on cable, internet and phone services, and then 1 percent cash back after. It also comes with a $350 bonus cash back bonus when you spend $3,000 on purchases in the first three months, plus an additional $400 when you spend $6,000 on purchases in the first six months after account opening. To top it off, the card has no annual fee — saving you $150 in fees over the Spark Cash Plus.

Your business needs to carry a balance

The Capital One Spark Cash Plus is a charge card — which means that balances on the card must be paid off each month. If you’re unable to pay off your balance each month, you might need to consider a business credit card instead. That way, you can carry a balance from month to month, although you’ll pay interest on charges you may carry over.

The American Express Blue Business Cash™ Card is a good credit card for small business owners. It charges no annual fee and offers 2 percent cash back on the first $50,000 you spend on eligible purchases each year, then 1 percent after. It also offers a 0 percent APR on purchases for the first 12 months after you open your account (then a variable 17.99 to 25.99 APR after).

Should you get the Capital One Spark Cash Plus?

Forking over $150 per year to earn 2 percent cash back may be a lot to ask if you don’t spend tons of money on your business 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.

That said, if your business is considering a large purchase, the Capital One Spark Cash Plus may be worth it. The card offers a generous one-time $2,000 cash back once you spend $30,000 in the first 3 months. In this case, the welcome bonus more than makes up for the $150 annual fee.

Businesses that spend a lot each month on their cards may also be a good fit for the Spark Cash Plus — especially if you need a card without a spending cap. Keep in mind that you will need to pay off your card’s balance at the end of every billing cycle to avoid steep late fees and past-due penalties.

The bottom line

Is the Capital One Spark Cash Plus worth its $150 annual fee? That depends on what you need from your card and how much you spend on your business each year. If you want an easy to use flat-rate business card and spend $150,000 or more annually, you’ll have an easier time maximizing this card’s rewards.

However, business owners who spend less than $100,000 each year may be better off with the Capital One Spark Cash Select for Excellent Credit, another Capital One card or a different business credit card altogether. Whatever you do, compare your business credit cards options against your business’s spending, budget and goals before signing up.