We all have to face the day when a bill was overlooked and didn’t get paid. Or even worse, an accident happened to you or a family member, and there simply was no way to pay the bills.
We have had it drilled into our brains over and over again to keep our credit clean. The credit reporting bureaus are awesome at reporting a bad credit mess up, but getting them to remove something from the credit is like trying to break into Fort Knox. It just about does not happen.
The seven-year itch
The general rule of thumb for bad credit to hang around is seven years. There are a few other rules that go along with it, but for the most part, seven is the lucky number for things to drop off and no longer exist for current credit reports.
So if you are after a merchant account, look at everything you have before you go looking for one. You might have to learn how to get a bad credit merchant account the hard way. Sorry, it really isn’t that difficult, for there are many merchant account servicers that exist purely with this in mind. But, it may stick in your mind as you are getting it, that it could have been easier if you did this…. Or did that.
Don’t despair
These are some of the items that will drop off after seven years:
- Late payments
- A debt that’s gone into collections
- Charge-offs
- Repossessions
- A chapter 13 bankruptcy
- A foreclosure
- Paid, withdrawn, and released tax liens
- Defaulted student loans
If you have other issues, these are what to look for:
- Chapter 7 bankruptcies stay on your credit report for 10 years
- Unpaid tax liens can stay on your credit report forever
Now what to do
When you apply for your merchant account, tell them the truth. They can’t take your birthday away and they only want you to succeed in what you are doing. So, if you had something go sour in the past, let them know what happened and why. A little bit of honesty goes a long way. They will work with you.
You might have a little longer trial period than other people or businesses, but that’s not a big thing. You know how to travel straight and narrow. You’ve got this.
If there are still things
Buckle down and track down all the bad credit you have. Find them through your credit report and begin making payments on the past debt you have. Ten dollars goes a long way toward paying off bills. You can’t get it paid if you don’t start. That will also go towards a brighter future, a cleaner conscience, and a credit report that begins showing positive payment history.
You’ve got it now! So, go grab your future. It’s a little brighter than when you started and there’s a merchant account servicer waiting for you at the end of your engine search. See you there.