Capital One Spark Cash No Longer Reports to Personal Credit Reports
Capital One has very solid business cards that come with 2x earning and often with huge welcome bonuses. But there’s some good reasons why people might overlook Capital One cards. Capital One pulls from all three main credit bureaus when you submit a credit card application and small business cards report to your personal credit reports.
But now HelpMeBuildCredit reports that there is a positive change for one of the cards. As per Capital One executives, the Spark Cash business card will no longer appear on personal credit report. Strangely, this is the only business card that will change the way it reports to credit bureaus, while the other business cards will continue to do so. This change has gone into effect already, since October 20th. It’s not clear for now if this applies to new applications only or if it will affect current cardholders as well.
Update: A Capital One spokesperson reached out to us to clarify their policy. Here is what they had to say. “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 it Matters?
The primary reason why it matters how Capital One Spark Cash reports to credit bureaus, is because it affects your Chase 5/24 status. Business cards don’t normally go into your personal credit reports, so Capital One is one of the only banks that does this. With less cards reporting, you have a better chance at staying under 5/24.
Another reason is that if you are heavily using the card for business expenses, it can affect your utilization score. That would then lower your FICO score and make it harder for you to apply for premium cards, get better rates on loans etc.
And last but nut least it matters because the Capital One Spark Cash card often has huge bonuses. Currently you can get a $500 welcome bonus, but we have seen in the past bonuses as high as $1,000 and $2,000. And you can earn 2% cash back on all purchases with no caps.
Conclusion
This is good news for people that worry about Chase 5/24 as it gives you another business credit card option. We need to find out more details about this change, on how it affects existing users.
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They do report to personal credit bureaus, my score dropped because I use cards exclusively for my business, going to pay down and use other cards, they offered a great reward for big spend in a few months, all I got was big credit drop. I have been with Capital One 360 for 20 years, still like them just not business cards.
Update 2023- Capital One Spark Business Card reports to your personal credit no matter what. I formally complained on this and was told it was a federal regulation to report to all, which seems like a lie since Citibank and Wells have business cards that seem to not report to personal credit bureaus. Note – this card is in perfect standing and new.
True. and its horrible.
The CapOne information above is incorrect so your article needs to be changed. They are STILL report to consumer credit agencies regardless of account standing. I called and they stated your article is not accurate and that they’d continue to report to the credit bureaus even if the account is in good standing.
If you got the card before October of 2020 then it will still be reported on your credit reports as clearly stated in the article. The clarification is directly from Capital One itself. The article is accurate.
[…] 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.” […]
[…] Miles to Memories has some extra data so far as how this transformation will likely be carried out. A Capital One spokesperson reached out and offered the follwoing data. “Our portfolio of small enterprise bank cards report back to each private and enterprise credit score reporting bureaus. For brand spanking new Spark Money clients beginning 10/20, Capital One will now not report to non-public credit score bureaus so long as an account stays in good standing.” […]
If it is only for new applications, it is worthless to those who got the card within the past 24 months