You often do not feel the effects of poor financial history until you need credit; maybe you are buying a home or new car and need to take out a loan, only to discover that a few blemishes on your financial record are preventing you from taking steps to build your future. Particularly when poor credit keeps you from launching a business, it is important to find partnerships that you can trust. Even when processing high risk credit cards merchants still have choices when it comes to finding a transaction network they can depend on.
Leaving the Past Behind
The personal credit history of the signer on an account is always checked and can significantly affect decisions for approval. For those hoping to prove their financial responsibility through their business conduct, securing a processing partner is the first step to ensuring the ability to securely and efficiently turn profits. The signer on an account is generally required to at least have partial ownership or be a majorly titled officer of the company; selecting the party with the best credit history will improve your chances of approval. Fortunately, processors will work with merchants that have a tarnished financial history and help them get their business started to prove their dependability. Payment Key Stone is a secure and savvy service that provides merchant accounts to businesses who have struggled in the past financially.
Factors That Can Drop Your Score
You may not even realize that you have a poor credit score even financially responsible individuals can fall victim to low ratings. A delinquent account in your remote past or an event such as bankruptcy or foreclosure can continue to diminish your ratings for years following. Similarly, series of late payments in your billing history can also take time to rectify. Applying for too many cards can have negative impacts; however, not having enough diversity in your portfolio can damage your score since it doesnt allow you enough opportunity to demonstrate consistent payment behaviors. Whether or not you use high risk credit cards, its prudent to check your score regularly to ensure that inaccuracies arent keeping you from the score you are entitled to.
When Its Time to Hit the Pause Button
In addition to poor personal credit, other blemishes on financial history can create issues in establishing relationships with prospective banks and payment processors. Tax liens reflect poorly on new merchants, flagging these businesses as carrying higher risk than those without tax violations. A tax lien is the governments legal claim over property as a form of security interest to secure payment of a debt. Carrying these penalties is indicative of tax misconduct and can make many merchant supporters hesitant to provide payment solutions. While there are still solutions available for these businesses, it is most advisable to resolve these liens prior to seeking a merchant account.
Moving past bad credit is frustrating and tedious, especially when the blemishes to your record happened years in the past. The good news for startups and ambitious proprietors is that merchant services can still lend a helping hand when it comes to processing high risk credit cards. Knowing why you are considered to be a liability will help devise the best strategies for success in your future endeavors. Seek payment partners that provide secure networks and diverse options for completing transactions. With time and the right support you can continue working to build the sterling reputation you know you are capable of.