It’s understandable that you might want to get hold of a business credit card without a credit check.
However, credit card providers are obliged to ensure they lend responsibly, so there’s no getting around the fact that your credit report will be assessed.
Nevertheless, there are plenty of steps you can take to improve your chances of being approved for a business credit card, even if your credit rating is poor.
When you apply for a business credit card, lenders will always assess your business credit score, as well as financial documentation, including your bank statements.
However, in some cases, your personal credit score will also be checked. This is common when your business is new and doesn’t have much trading history to assess.
To improve your chances of being approved for a business credit card, you’ll want to take steps to improve both credit scores by ensuring all personal and business debt payments are made on time.
The credit limit, interest rate and interest-free period offered to you are also likely to be determined by your business and personal credit scores. The better your credit scores, the better the deal you’re likely to be offered.
The best thing you can do is take steps to improve your credit score. However, there are certain types of credit cards that you’ll be more likely to be approved for, regardless of your credit score.
Many business credit card providers offer an eligibility checker tool on their website. With this, you’ll fill in a few financial details to see whether you’re likely to be accepted for a specific credit card.
The most useful thing about these tools is that they only run a “soft check” of your credit report, which doesn’t affect your credit score at all. A “hard check” of your credit report produces a temporary dip in your credit score.
If you’re approved by an eligibility checker, you’ll still have to make a full application, which will include a “hard check” of your credit report. It’ll also require more information, and you could still be declined based on these additional details.
Still, by discovering the likelihood of being approved for a credit card before you make a full application, you can reduce the chances of decimating your credit score by being declined several times.
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