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Being declined for the Capital on Tap Business Credit Card can be disappointing, especially when it affects your plans for business growth. Understanding business credit card eligibility is crucial to finding why you've been declined before reapplying, as multiple applications in a short period can sometimes prevent approval in the future.
When considering a new application, evaluate your current situation compared to when you previously applied. If your credit files, financial position, and business details remain the same, it's unlikely that the outcome will change on reapplying. Remember: you are in control of your credit report, and understanding it is the first step to success.
How lenders decide who to lend to
When you apply for a credit card, lenders review the information provided on your application, along with the credit history on your credit files with the relevant Credit Reporting Agencies (CRAs).
The lender's goal is to assess your (and your business's) creditworthiness—your ability to manage and repay the credit you're requesting. They do this by using a combination of their own specific criteria and the detailed data held by the CRAs.
Common reasons your Capital on Tap Business Credit Card application may be declined
There are a number of reasons why an application may not be approved. You might receive an instant decision, or we may need to review the information you have provided before determining the outcome. We understand a decline can be disappointing. To help you get clarity on what may have happened and what you can do next, we’ve outlined the most common eligibility related reasons below:
1. Your business doesn't meet the Capital on Tap eligibility criteria
Every lender has a set of core criteria that applicants must meet in order to be considered for a line of credit. If your application for the Capital on Tap Business Credit Card has been declined, it is most often because one or more of these requirements were not met.
To be eligible for our card, your business must meet the following core requirements:
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You are an active director or a majority shareholder (25% or more) of the company, and you reside in the UK.
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Your business is a private limited company (Ltd) or a limited liability partnership (LLP) registered in the UK.
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Your business has an annual turnover of at least £24,000.
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Your business is listed as active on Companies House.
Businesses that do not meet these criteria, for example; sole traders, dormant companies, businesses not actively trading, or certain industries currently outside our lending policy may not be eligible.
We also periodically review and update our lending criteria. This means that changes in your business or financial circumstances may affect your ability to access your account, including potential credit line reductions, declines or closures. Even when you have an existing account, we periodically review and update criteria, meaning changes in your finances and business can affect your access to your account, which could result in a credit line decrease, decline, or closure.
2. Mistakes on your application
Simple mistakes on your application can sometimes be enough for your application to be turned down. Always make sure to double-check your information, especially personal details, as this could result in difficulty locating or matching your credit files.
If you notice any typos after submitting your application, we recommend contacting us as soon as possible to get this updated.
3. The lender was unable to confirm your identity
Before a line of credit can be offered, lenders are required to verify key information about you and your business. As a regulated financial institution, Capital on Tap must be able to confirm your details and business structure to meet standard regulatory requirements.
Sometimes, the information provided on an application doesn’t fully match the records held by credit reference agencies or government IDs.
This can happen if:
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You've recently changed your name and haven't updated all your accounts.
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You've moved address and your new details aren’t reflected on your credit file or the Electoral Roll.
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Your address is part of a new development that has not yet been fully registered by credit bureaus.
Remember, these checks are in place to protect both you and the lender and help prevent identity theft and unauthorised credit applications.
4. Insufficient data on your credit files
The information on your credit files is vital as it informs us about your past financial behaviour. Errors or missing details can heavily influence your chances of approval.
We recommend checking a copy of your consumer credit report and, where applicable, your business credit report. Review the information for:
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Errors on your credit files. Incorrect personal details, previous addresses, or accounts that don't belong to you.
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Missing business data. For a business application, the lender will look at your business credit files to see your existing accounts, credit card, or lease agreements.
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Insufficient credit history. If you don't use credit, you don't build credit. If you have insufficient payment history or very limited account history, this affects your creditworthiness.
If you spot an error on your file or if key business credit data is missing, you must contact the credit reporting agency directly to check that your information is being reported correctly.
5. You have a history of late payments
A history of late payments on either your personal or business credit files is a key indicator of risk for lenders.
A late payment is recorded whenever a scheduled payment, whether for a personal loan, credit card, or business financing, is not received by the due date. On the business side, this can even include missing invoice payments to suppliers, which are sometimes visible on business credit reports.
We also look for serious negative credit markers, such as County Court Judgements (CCJs). A CCJ is a court order registered against you or your business if you fail to repay a debt. For approval, we typically look for no unsatisfied CCJs against you or your business in the last 12 months.
While a late payment history or past CCJ can make getting new credit harder, the decision isn't permanent. Remaining diligent with your payments on all existing commitments will improve your profile over time.
How a business application affects your credit score
Applying for a Capital on Tap Business Credit Card has no impact on your personal credit score—even if you're declined. We only perform a soft search on your personal credit file at the application stage, which other lenders cannot see.
If you are approved and later receive a limit reduction on your existing account, this will be noted on your credit files, along with other payment history elements.
The bottom line
If your application wasn't successful this time, don't be discouraged. Many issues can be resolved, allowing you to reapply successfully in the future. Here's your action plan:
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Review eligibility criteria. Carefully go through the Capital on Tap requirements to ensure your business qualifies.
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Check your credit files. Review both your personal and business credit reports for any errors, insufficient data, or signs of identity mismatch.
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Manage payments. Become diligent with all your credit and invoice payments to build a stronger financial profile over time. For more information, read our guide on how to build your business credit.
By understanding and addressing these common issues, you're setting yourself up for a smoother application process and boosting your business's financial health. Once you have addressed these issues, our application process is designed to be easy to apply, offering you an instant decision so you can get back to running your business.
