What are business credit card eligibility checkers?

If you’re thinking about applying for a business credit card, an eligibility checker can show your chances of being accepted without affecting your credit score. In this guide, we explain how these checkers work and why it’s worth using one before you fill out an application in full.

Key takeaways

• A business credit card eligibility checker tells you the likelihood of approval for a particular credit card 

• Eligibility checkers only use a soft credit search and don’t hurt your credit score

• Using an eligibility checker reduces the chances of applying for a credit card you won’t get

• Eligibility checker results aren’t guaranteed, but they give a good indication

What's a business credit card eligibility checker?

A business credit card eligibility checker shows your chances of being approved for a card before you apply. It uses a soft credit check rather than a hard credit check, so it won’t affect your credit score.

What's a soft credit check?

A soft credit check is a review of your business’s credit history that does not leave a visible mark on your credit file. Lenders cannot see it, so it won’t affect your chances of being approved for credit.

What's a hard credit check?

A hard credit check is a full review of your credit history that takes place when you apply for a business credit card. It is recorded on your credit file and can be seen by other lenders.

Too many hard credit checks in a short space of time can indicate to lenders that you’re having financial problems. This may prevent you from borrowing money in the future which is why using an eligibility checker can be so beneficial. 

💡 Editor insight: Why it pays to know your business credit score

How do business credit card eligibility checkers work?

If you decide to use a business credit card eligibility checker, your first step is to provide some details about your business, such as:

• Your business structure - for example sole trader, limited company or partnership

• Your business name and address

• Annual turnover

• Trading history

• Number of employees 

The eligibility checker then searches your business’s credit file and uses the information to assess whether you’re likely to qualify for a particular business credit card. Your results should appear quickly, and you can then decide whether it’s worth proceeding with your application.

If you do proceed, the lender carries out a full credit check on your business; if you don’t proceed, no damage has been done, and you can search for a different credit card or an alternative way of borrowing.

Keep in mind that eligibility checkers only give you an indication of your chances of acceptance. The results aren’t 100% guaranteed.

Benefits of using eligibility checkers 

Some of the benefits of using an eligibility checker include:

Saves time

Using an eligibility checker is quick and easy. It enables you to assess the likelihood of being approved for a card without going through the full application process for multiple cards, which can be a time-consuming process. 

No damage to your business credit score

An eligibility checker lets you check your chances of approval without affecting your credit record as it only uses a soft search. 

Better decision making

Having a better understanding of your chances of acceptance means you can make more informed financial decisions. If you are unlikely to qualify for a particular credit card, you can look for one that might have different eligibility criteria, or weigh up other borrowing options like a business loan or invoice finance. 

How can I improve my chances of getting a business credit card?

Before you apply for a business credit card, here are five simple steps you can take to increase your chances of acceptance:

1. Check your credit report

First, check your business’s credit report. This gives you a good understanding of your situation and enables you to check for errors. If you find any mistakes, contact the credit reference agency and ask for a correction.

If there are any negative marks on your report, such as a missed payment, it may be better to wait until it’s removed before applying for more credit. This usually happens six years after the incident was first recorded. 

Read more: Business credit scores explained

2. Take steps to improve your credit score

If your business credit score is poor, it’s worth looking at ways to improve it and build your business credit. You can do this by paying bills on time, filing full accounts rather than abridged or micro-entity accounts, paying down debts and keeping HMRC updated about any business changes. 

3. Check eligibility criteria carefully 

There’s no point applying for a credit card you have no chance of getting. So, check the criteria carefully and make sure you meet them before going further. Otherwise, you’re wasting time.

4. Use an eligibility checker

Once you’ve found a business credit card you want to apply for, use an eligibility checker, so you know how likely you are to get it without affecting your credit score. 

5. Complete the application form carefully

When you’re ready to apply in full, provide all the necessary information to get your business credit card, and take your time reading through the application form. If you rush, you’re more likely to make mistakes, which could lead to a rejection.