Credit Default Rates Decline

Aug 08, 2014

Since the economic crisis of 2008, the economy has been slowly recovering. The latest data shows that the economy is continuing to grow and perhaps is getting stronger, coming close to reaching pre-crisis levels. In fact, the Credit Default Indices show a decline in default rates.

The S&P Dow Jones/Experian Credit Default Indices, which measures the changes in consumer credit defaults, revealed a decline in mortgage default rates while bank card and auto loan rates saw an increase. The national consumer credit default rates continued to decline as they had in prior months.

Overall the national composite was at a historic level, 1.04 percent, the lowest default rate since May 2006. Consumer credit default rates reaching record lows show signs of an improvement in the economy. This consumer credit data is supplemented with other statistics.

The unemployment rate is also breaking records as well and has reached a six-year low point. There has also been strong data where job creation is concerned. These factors coupled with the dropping default figures are signs that the economy has been steadily improving.

Many businesses have been created during the economic crisis to aid people in difficult times. Fixing the credit problems of those who have had default issues and allowing them to get back into good standing is in demand. A credit repair merchant account is a fast and efficient way to accept payment for businesses such as these.

As the economy continues to improve the consumer default data will improve as well. The creation of more jobs lowers unemployment and in turn, improves consumer credit spurring growth of a cyclical nature.

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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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