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Updated: 31 December 2024
When you’re looking for a business credit card, the last thing you want is to damage your credit score with multiple applications. That’s where credit card eligibility checkers come in handy. They can give you an indication of how likely you are to be accepted before you apply, without affecting your credit score. We look at how they work and what it means for your credit score.
A credit card eligibility checker, sometimes called a ‘soft search’, lets you see how likely you are to be accepted for a credit card before making a formal application. It perform what’s known as a ‘soft search’ on your credit file, which means it won’t leave a footprint that other lenders can see.
This is particularly important for business owners, as multiple rejected credit applications can make it harder to access finance in the future. Each time you formally apply for credit, it leaves a ‘hard search’ on your credit file, which other lenders can see. Too many of these in a short period can suggest financial difficulties, even if you’re simply shopping around for the best deal.
When you use an eligibility checker, you’ll typically need to provide some basic information about your business, such as:
The checker then uses this information, along with data from credit reference agencies, to assess your likelihood of being accepted. The process is quick and usually provides an instant result, giving you a clearer indication of whether it’s worth proceeding with a full application.
There are several benefits of an eligibility checker, from protecting your credit score to providing better financial planning.
The main advantage is that you can check your chances of approval without risking damage to your credit score. As a result, you can potentially shop around more confidently and make informed decisions about which products to apply for.
Knowing your chances of approval beforehand can avoid spending time on applications that are likely to be rejected. This is particularly valuable for busy business owners who need to make efficient use of their time.
Understanding your eligibility can help you make better financial decisions for your business. If you’re not eligible for your preferred card, you can explore alternative options or take steps to improve your eligibility before applying.
While checking your eligibility is a good start, keep these key factors in mind:
While eligibility checkers provide a good indication of your chances of being accepted, they don’t guarantee approval. The final decision is always based on a full credit assessment and any additional information requested during the formal application process. Take them as an indication more than a guarantee you’ll qualify for a business credit card.
The accuracy of the result depends on the information you provide, and it’s only as good as the information you give it. Therefore, you should make sure all details are correct and up-to-date to get the most reliable indication of your eligibility.
Lenders have their own eligibility criteria and assessment methods. Just because you’re eligible with one provider doesn’t automatically mean you’ll qualify with another. It’s always best to check the lender’s criteria before even checking if you’re eligible.
Once you’ve used an eligibility checker and know you have a good chance of approval, there are several steps you can take to strengthen your application:
Have key business documents ready, such as bank statements and company accounts. While not all lenders require these upfront, having them prepared can speed up the process.
Review your business and personal credit reports for any errors or issues that could affect the application. Address any problems before applying.
Think carefully about how you’ll use the card and think about how it matches your business requirements. For example, if you’re looking at the Funding Circle Cashback business credit card, consider whether features like 2% cashback for the first six months (capped at £2,000) and 1% uncapped thereafter align with your spending patterns.
After using an eligibility checker and considering your options, you’ll be in a better position to decide whether to proceed with an application. Remember that business credit cards are just one of many financial options available to businesses. Sometimes, alternative products might be more suitable for your needs.
Make an informed decision based on your business’s specific circumstances and requirements. Eligibility checkers are valuable in this process and help you explore your options without risking your credit score.
While eligibility checkers can give you a good indication of your chances, they’re just the first step in the application process. Always read the full terms and conditions of any financial product before applying, and consider seeking professional advice if you’re unsure about which option is best for your business.
If you’re interested in our Cashback credit card or FlexiPay from Funding Circle, you check your eligibility without it affecting your credit score and then apply in minutes.
31/12/24: While we want to help as much as we can, the information found here is provided solely for informational purposes and should not be considered financial or legal advice. To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained here. If you have any questions, please speak to your professional adviser or seek independent legal advice.
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