Your credit score is a three-digit number. It usually ranges from 300 to 850 based on your credit report information. What if your credit score is away from being excellent? Who can help you with getting a merchant account with bad credit?
Bad Credit Score: What Is This?
The calculation of your credit report is based on your credit report. The three major credit bureaus, Experian, Equifax, and TransUnion, calculate your credit score taking into account the information they receive from financial institutions that your interact with.
The most famous score is the FICO Score in the U.S. It hit a record high of 710 in 2021, as Experian’s 2020 Consumer Credit Review revealed. If you have a high credit score, you can qualify for the best interest rates and terms when applying for merchant services, including business financing.
FICO Score Ranges:
- 300 – 579 Poor
- 580 – 669 Fair
- 670 – 739 Good
- 740 – 799 Very Good
- 800 – 850 Exceptional
A poor credit score can cause headaches for you, such as:
- Being ineligible for loans and lines of credit. Even if you get approved for bad credit financing, the lender will charge you a higher interest rate.
- Your rental application won’t be easily approved.
- Required security deposits for utilities including gas, electricity, and water when moving to a new house.
- You won’t get a new cell phone contract easily.
- Issues associated with an employment background check.
- Some states will charge you higher insurance premiums.
Getting a Merchant Account with Bad Credit
On the one hand, a spotty credit report won’t let you enjoy low-interest rates. On the other hand, you will end up with few loan options and merchant processing services. Moreover, it can make it difficult for you to find housing and even count against you in a job hunt.
The good news is that you can work on improving your credit score. How? Pay your bills on time, pay off your debt, and avoid new hard inquiries. Importantly, you can turn to a reputable high risk merchant processor ready to work with hard-to-approve merchants.
With a trustworthy and experienced high risk payment specialist, you can get fast and easily approved for business funding and merchant processing services at the lowest possible rates in the space. So, look for a respectful high risk processor that can help you with getting a merchant account with bad credit.
What You Should Know About a Bad Credit Score
According to FICO, a credit score below 580 is poor. Even if your credit is poor, you can work with a reputable high risk processor to open a merchant account for your eCommerce business.
Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter, and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest rated high risk merchant account processor in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.