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Capital One Spark Cash Will Not Report to Personal Credit Reports
Capital One might not be as popular as American Express and Chase in the miles and points world, but they have solid credit card products. Besides the Venture and Savor cards, they also have a good lineup of business cards that come with 2x earning and often with huge welcome bonuses. But there are a couple of good reasons why some people might overlook Capital One cards. Capital One pulls from all three main credit bureaus when you submit a credit card application for either a consumer or business account. Additionally, small business cards report to your personal credit reports.
But that is changing, at least for one of their business credit cards. HelpMeBuildCredit reports that there is a positive change for the Spark Cash business card. As per Capital One executives, the card will no longer appear on your personal credit report. Strangely, this is the only business card that will change the way it reports to credit bureaus, while the other Capital One business cards will continue to do so.
Miles to Memories has some more information as far as how this change will be implemented. A Capital One spokesperson reached out and provided the follwoing information. “Our portfolio of small business credit cards report to both personal and business credit reporting bureaus. For new Spark Cash customers starting 10/20, Capital One will no longer report to personal credit bureaus as long as an account remains in good standing.”
Why This Change Matters?
First of all it’s always a good idea to keep an eye on your credit report. Nowadays you can do so for free, so you should periodically check not just for new credit cards that hit your report, but also for possible accounts that could be opened fraudulently. Also, financial institutions might make mistakes sometimes and report negative remarks.
Now the primary reason why this Capital One Spark Cash new matters is that every card that reports to credit bureaus affects your Chase 5/24 status. Business cards don’t generally go into your personal credit reports, so Capital One is the only major bank that does this. With less cards reporting, you have a better chance at staying under 5/24. This is a good thing even when applying for credit cards from other issuers.
Another reason is that if you are heavily using the card for business expenses, it can affect your utilization score and lower your FICO score. That makes it harder for you to apply for premium cards, get better rates on loans etc.
With this positive change, more people could look at the Capital One Spark Cash card for their small business. Currently you can get a $500 welcome bonus, when you spend $4,500 in the first 3 months from account opening. But we have seen big bonuses in the past, sometimes as high as $1,000 and $2,000. And you can earn 2% cash back on all purchases with no limitations.
Guru’s Wrap-up
This is good news for people that worry about Chase 5/24 and other who don’t want to have an additional credit card reporting to their personal credit report. This change for the Capital One Spark Cash card will only affect new customers for now. Other Capital One business cards will continue to report to your personal credit report.
DannyDealGuru has partnered with CardRatings for our coverage of credit card products. DannyDealGuru and CardRatings may receive a commission from card issuers. Responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
