What is a Credit Check?
Companies generally run credit checks when someone has applied for a loan or financial service, for example, a bank account, credit, utility supply, lease, or mobile phone contract. A credit check refers to the process of gathering information from your credit report to understand your financial behaviours, such as whether you pay your credit back on time, how much credit you have, your financial associations and credit history.
With every fuel card application, we run a fuel card credit check processed against the above criteria, to help us approve applications. Our credit checks are done inhouse using Graydon credit management software, to help us define the value rating and risk rating of your company. Although the majority of applications pass credit checks, it’s worth being aware of the factors risk rating is based on:
- Industry information
- Court proceedings
- Direct debit information
- Number of directories
- Out of character account changes
Why We Run Credit Checks
One of the main reasons we run a credit check before issuing approved fuel cards is to check your financial behaviour, that your business is valid and that your VAT number and company registration number are correct. Checking this early on saves any issues or delays later down the line.
It’s also important to run credit checks to ensure the fuel card limit you’re applying for is going to meet your needs based on your previous and current fuel spend. We decide this based on the duration of credit, your monthly spend and payment intervals.
Our goal is for your business to get the most out of your fuel card arrangement and so we run some calculations to check your fuel limit will cover all your drivers and fuel requirements. If we find your fuel spend is significantly more than your fuel card limit, we’ll let you know and discuss whether you’d benefit from a higher fuel limit on your fuel card account.
Information Required for Credit Checks
To run a credit check, we’ll need your business’s trading address, VAT and company registration numbers, and bank details. It’s unlikely, but if we were to encounter issues with your credit check, we’d ask for access to financial management accounts and possibly a bond or guarantee – please see more on bond payments in the next section.
Fuel Cards for Poor Credit
More often than not, credit checks go through smoothly. But, if anything untoward surfaces in your credit check, we’ll be in touch to discuss this with you. It’s worth noting that we decline applications if we come across a County Court Judgment (CCJ).
If you have poor credit, we’ll work with you to find a way forward! In most cases of poor credit, we simply ask for a bond payment. This is a one-off payment equivalent to 50% of your monthly fuel limit. The bond is kept securely in an external account, much like the way a rental deposit is kept in a deposit scheme. The payment doesn’t come off your monthly payments unless your payments are long overdue. However, bond payments are refundable and are paid back when or if your credit rating improves sufficiently or should you decide to stop working with Fuelmate.
We ask that you allow 48 hours for the credit check to go through and usually ask 5-10 days after that for the fuel card application to be processed and the cards to be dispatched.
Credit checks are standard procedure when applying for a fuel card account and we like to keep the process as straight forward as possible. We guide you through the application and are on hand at every point during the application process to answer any questions or concerns you might have.
For more information on fuel cards, read our extensive guide to fuel cards or browse our blog posts. To begin your application, start apply online now or please feel free to contact us with any questions you may have surrounding credit checks.