Bad Credit Debt

Failed Credit Check Capital One

Being someone with Bad Credit, I have failed a Credit Check with Capital One. In my case I think the answer was down to affordability, which is one of the many factors a lender will take into account when deciding on whether to approve, or to decline your application for credit.

When you reach get the decision from Capital One then normally they provide quite a generic explanation as to why they have declined it.

One thing could be that you had a credit card with Capital One in the past and defaulted on it. Maybe you already have another credit card with Capital One, for example Luma is also provided by them as is the Thinkmoney Credit Card.

Do you have any recent defaults or County Court Judgments registered against you? If so these could also be the cause.

My first port of call would be to check my credit report. You are able to do this for free by the way! One place you could check your report is Credit Karma and another is Clearscore. Both will give you an overview of your credit report (although both are from different Credit Reference Agencies).

There are paid services available as well. I also use Checkmyfile as this provides all three credit reports in one place making finding any issues easier than it would be browsing reports across different sites for example.

What else could have caused a Failed Credit Check from Capital One?

Too Much Debt

If you already owe too much money then this might cause your application to decline. Part of a credit check now includes an affordability assessment. Gone are the good old days of just getting credit without considering if you can afford to repay it.

Recent Missed Payments

If you have recently missed payments say in the last 12 months, this could also be another reason why your credit check failed. It could be a sign you are struggling financially and Capital One might not have liked that and decided not to approve you.

Other Credit Cards Maxed out

Similar to the affordability check, if you have a number of other credit cards, and you have spent up to your limit only making the minimum payment, this could also be a reason for not being accepted.

Recent Adverse Data

Adverse Data is things like County Court Judgments or Defaults. If you have any of these in the recent past this will likely be a reason why you have been declined. Nothing but time will fix this unfortunately.

Made lots of other applications for credit recently

If you have made a lot of other credit applications recently, this could indicate you are struggling financially and may have put off Capital One.

Anything Else?

Just because Capital One has declined you it doesn’t mean that others won’t accept you. If you look at Credit Karma for instance, they will actually recommend credit cards based on your credit score, and checking doesn’t harm your credit score either so it might be worth checking there before making any further applications.

If it is the case that you are in debt then take it from someone who has been in that situation and try to avoid getting any more credit, it only makes things more difficult in the future.

Finally I wrote a Credit Karma review on my other blog about Bad Credit, if you would like to find out more!

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