Capital One Spark 2X Miles Review: An Unlimited Miles Card With a Competitive Bonus

The Capital One Spark 2X Miles is a small business credit card aimed at business owners who want to earn lots of travel rewards without too much hassle. Where the typical travel rewards credit card has multiple categories to track, the Capital One Spark 2X Miles is a bit of an outlier. It earns the same 2x miles per dollar on your purchases, but that's not all it has to offer. Read our full Capital One Spark 2X Miles review for all the details.

This credit card is a good fit for: Business owners who want a great rewards rate on their spending and versatile miles with several redemption options.

Top perks

Unlimited 2x miles per $1

The Capital One Spark 2X Miles earns an unlimited 2x miles per dollar on purchases. That's twice the typical base rate for a travel rewards card, though less than some cards' bonus category rates. And that's part of the perk -- you don't need to track bonus categories or activate anything to earn the 2x miles. You can also earn up to 5x miles per dollar on hotels and rental cars if you book through Capital One Travel. And, perhaps best of all, your rewards are truly unlimited; there's no quarterly or annual cap on how many rewards you can earn.

50,000 miles sign-up bonus

The issuer will grant 50,000 miles as a one-time bonus to new cardholders who spend $4,500 in qualifying purchases within three months of account opening -- that equates to $500 in travel statement credits. The bonus could be worth even more if you transfer your miles to one of Capital One's travel partners and redeem wisely.

While this isn't the best sign-up bonus you can find, it's certainly competitive. And it's even better when you compare the spending requirements for higher bonuses; some require you to spend $7,500 or more in the first three months, which may be difficult for smaller businesses.

No foreign transaction fee

This card passes the no foreign transaction fee test, so that's one less thing to worry about when venturing overseas and using this card to help fund the trip. Foreign transaction fees can add up to 3% to every purchase in a foreign currency. But this perk offers savings on more than just your purchases abroad. Many cards with foreign transaction fees also charge them on any purchases that route through a foreign bank -- even if you make them from home. So, the Capital One Spark 2X Miles can help you save when purchasing from foreign suppliers, too.

Flexible redemption options

This isn't one of those credit cards that requires customers to redeem their miles through the issuer's dedicated travel portal to get the best rate. Holders of this card have that option, but they're also free to book travel through any means they want.

However, for many folks, the best value will come from transferring your miles. Capital One has partnered with more than a dozen airline loyalty programs, meaning you can turn your Capital One rewards into frequent flyer miles. Most transfers are at a 1:1 rate, and smart redemption could net you significant per-mile value.

Airport perks

The Capital One Spark 2X Miles comes with a few perks that could be particularly useful for those who fly multiple times a year. For one, cardholders can get a $100 credit for Global Entry or an $85 credit for TSA Pre✓®. This credit kicks in every four years, which is how long you can go between renewals. These programs can help you speed through U.S. immigration and domestic airport security, respectively.

Learn more: Best Travel Rewards Credit Cards

What could be improved

Here are a few potential downsides of this card to consider.

Annual fee

Yes, the annual fee is waived in the first year of ownership. But unless you only plan to keep the card for a year, you'll be hit with that annual fee every year after. A $95 annual fee isn't the highest we've seen-- but it's not the lowest, either. The annual fee is worthwhile if you spend so much that the miles you earn are worth well over $95 a year. If not, you can find no annual fee travel cards that may make more sense for businesses with smaller budgets.

No introductory 0% APR offer

Credit cards with intro 0% APR offers for new cardholders are so common these days that any cards without them stand out -- in a bad way. The Capital One Spark 2X Miles doesn't offer an intro APR rate on new purchases or on balance transfers, which is a big lack in a competitive market. If you have large purchases coming up and were hoping to score an interest rate deal, you'll need to look somewhere else.

Read more: Best Capital One Credit Cards

This card is for business owners with excellent credit -- a FICO® Score of 700 or higher. The issuer goes on to define a person in this category as one who has:

• Never defaulted on a loan.
• Never declared bankruptcy.
• Managed a credit card account or loan for at least three years. Said product(s) should have a credit limit or total amount of more than $5,000.
• Not, over the past year, paid a credit card statement, loan installment, or medical bill more than 60 days late.

The issuer says these factors are only guidelines in its decision. It will also weigh select information from the data you provide on the application and of course, your overall credit history.

As with any product that carries a charge, you should be willing to pay an annual fee for a credit card only if you're going to get enough use out of the card. Use is the key here. In the case of Capital One Spark 2X Miles, right off the bat, will you and your business spend enough to qualify for the sign-up bonus? Those miles alone are worth $500 in travel statement credit, which is more than enough to cover five years of the annual fee.

Beyond the sign-up bonus, consider how much annual spend you (and your employees) will be putting on the card. The annual fee is only worth it if you'll earn enough each year to cover the fee -- and then some -- long after your sign-up bonus is gone.

For Capital One Spark 2X Miles, the math works out like this: You and your team will need to hit 9,500 miles per year (equating to $95 in travel redemptions) to reach that $95 annual fee. This breaks down to an annual spend of $4,750, averaging out to just under $396 per month for all cardholders.

If your spending will far exceed that minimum, the Capital One Spark 2X Miles could be well worth the annual fee. But if that's at or near your budget, consider a no-fee card that won't eat up most of your rewards.

See more: Best Rewards Credit Cards

The Capital One Spark 2X Miles is a solid pick for business owners who want a simple way to earn competitive travel rewards. It may be especially lucrative for businesses with multiple employees who can all earn the same 2x miles per dollar. Having several cardholders spend on at least a semiregular basis will keep the miles tally rising.

Smaller businesses or those with less annual spending may not see as many benefits, especially in light of the annual fee that kicks in the second year. These cardholders may be better off checking our list of credit card reviews for a card with no annual fee.

Our credit card methodology

At The Motley Fool Ascent, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.

We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how The Ascent rates credit cards.