Can Credit Cards And Personal Loans Boost Credit Scores?

Oct 30, 2015

A good credit score is important. Many mortgage companies and financial institutions look at credit scores to determine the eligibility or interest rates for applicants. In some states, a credit score can even impact the cost of auto insurance. There are a lot of myths about ways to improve credit scores, but two tried and true avenues to up a credit score is to properly manage credit cards and personal loans.

Credit Cards

Using credit cards and paying the balance in full every month will raise your credit score. 10% of FICO scores center around credit. A revolving line of credit with an installment loan will most likely up your score. However, financial professionals caution consumers about taking out unnecessary loans just to pay off credit cards.

Personal Loans

Personal loans can also improve credit scores by using the proceeds from personal loans to pay off credit cards. As you pay off credit cards, your utilization is reduced. Lending Club reports that 77% of their borrowers increase their credit scores by an average of 22 percent within three months after paying off credit card debt with loans. Many people have used small personal loans with low interest rates to pay off high interest rate credit cards. But consumers should only use loans to pay off credit cards if they have the discipline to not place more money on credit cards.

If your business has bad credit, paying off credit cards and smart utilization of personal loans could save your credit and make your business a viable contender for lines of credit or investing. Established payment processors like, are now one of the best options for merchants with bad credit. EMB helps businesses with bad credit start and grow profitable merchant accounts despite former FICO scores, bankruptcies, and tax liens.

Our team of merchant account experts will create the perfect account for your business along with more benefits like:

  • No Application Fee
  • Multiple Secure Payment Gateway Options
  • No VISA/MasterCard Required
  • Competitive Rates

Businesses with bad credit need easy, straightforward, and quick payment processing. eliminates the obstacles that most payment processors put bad credit merchant account owners through. With no application fees or MasterCard and VISA requirement, our merchant accounts have the most competitive rates.

Let us help you get a high risk merchant account today!

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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