Credit Default Rates at Eight-Year Low

Jul 07, 2014

According to a recent survey released by S&P Dow Jones Indices and Experian, the national consumer credit default rates declined in May from April. This month, the national composite posted at 1.04 percent, making it the lowest default rate since 2006. While mortgage default rates decreased, both bank card and auto default rates showed an increase over April.

David. M. Blitzer, chairman, and director of the S&P Dow Jones Indices index committee noted, “Consumer credit default rates decreased for their seventh consecutive month. The national composite is now only one basis point above its historic low. Mortgage default rates saw the biggest decline when compared to auto and bank card rates.”

After hitting record low default rates in March and April, the auto loan rate increased by one basis point to 0.93 percent. The bank card default rate accelerated by 13 basis points over April to 2.97 percent.

“New York was the only city to see its default rate increase but it showed the largest drop-off from one year ago. Dallas posted a new historic low of 0.77% while Chicago, Los Angeles, and Miami are at their lowest default rates since the start of the last recession. Miami continues to maintain the highest default rate of 1.74% while Dallas maintains the lowest rate of 0.77%. All five cities – Chicago, Dallas, Los Angeles, Miami, and New York – remain below default rates seen a year ago,” continues Blitzer.

With credit rates fluctuating and the economy still on shaky ground, even well-run businesses are having a hard time finding and maintaining cash flow. At, we can provide your business with a reliable merchant cash advance. We can get one of our merchants funded within 5-10 business days. Our Merchant Cash Advance Program is our most popular form of business.

We can offer virtually any type of business access to fast working capital, despite the bad credit. If your business does at least $2500 a month in revenue, then can get you the merchant cash advance that you need.

The Merchant Cash Advance Program is managed by financial experts that look at your business’ total credit card processing revenue and gives you an advance based on a 3-6 month average.

Contact us at 1-800-621-4893 or click below to get a merchant cash advance 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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