How To Borrow Money with Bad Credit
Bad credit? No problem! You can still obtain a bad credit merchant account to grow your business. Of course, poor credit will definitely make it more challenging for you to get approved for payment processing. However, with a true professional in the field, you can get the best for your business.
Let’s see how you can borrow money and open a merchant account with bad credit.
Bad Credit Merchant Account and Business Funding
It’s not easy to build and maintain a perfect credit score. Only 1 in 5 people has a credit score between 800 and 850, which is regarded as exceptionally good.
90% of businesses use the so-called FICO credit score, the most popular credit score. FICO scores range from 300-850. The higher your score, the easier you can get approved for business funding or a merchant account for your business. The average credit score for US consumers in 2018 was 700.
By the way, FICO reports that people aged 60 and above have an average credit score of 743. Those aged 18-29 have an average of 652. If your credit score is below 580, you’ll have a difficult time getting approved for a loan from a legitimate lender.
Yes, it’s difficult but it’s doable. Only, you should know where to apply. Start comparing multiple offers to find the best option. Be aware that the harsh credit requirements used by banks and other traditional lenders won’t prove to be reasonable for you.
Go online and get the best deal for your business. Turn to a reputable alternative online lender and payment processor to get the best deal for your business. Respectable high risk merchant services providers are ready to work with hard-to-approve merchants and get them a secure and affordable bad credit merchant account with ease.
Borrowing Money with Bad Credit
First of all, let’s focus on some common signs of a bad credit score:
- Higher interest rates
- You aren’t paying down the debt and are making minimum payments on high interest credit cards
- You have late payments for housing, utilities, and other monthly bills
- Your checking account is regularly overdrawn
- You have a difficult time getting a lease for housing
- Cell phone companies refuse to give you a contract
How can you improve your credit?
- Clear up the problems in your credit report
- Improve your financial habits
- Don’t change your job just before applying for a loan
- Pay off an existing debt, or at least pay more than the required minimum payment
- Avoid frequently opening new credit accounts
- Ask someone with a solid employment and credit history to provide a personal guarantee so to add extra security to your application
Remember that if you have really bad credit, lenders will view it as a sign that you’d have a tough time handling a personal loan right now. So, it makes sense to hold off on borrowing and devote some time to paying down your debt. This will make things go better the next time you borrow.
Author Bio: Electronic payments expert Blair Thomas co-founded eMerchantBroker, serving both traditional and high-risk merchants by offering a bad credit merchant account and other merchant services. His passions include producing music and traveling.