Losing Battle with Debt, Generation Y Desperately in Need of Credit Repair

Nov 27, 2015

Generation Y includes those born between 1981 and 1995. The majority of people know that these young people are saddled with an alarming amount of debt and low credit scores. In truth, Gen Y’s carry less debt than the national average – but that’s not necessarily a good thing.

The majority of Gen Y carry “bad debts”; such as, credit card debt and other loan products that do not help in building the individual’s assets. Why? While it is difficult to pin point the exact reason, the job market, impulse buying and a digitalized consumer-driven society play a big part.

Even Generation Y’s “good debt” – like student loans – has negatively affected them. The average college degree means at least $30,000 in debt. For the student that receives help from their parents or institution, that number can easily double. In addition, if a student continues on to graduate school, the number can reach into the hundreds of thousands of dollars. According to BFC Nations, “The average Gen Y (18-29) member has a credit score of 672, compared to 718 for Gen X or 782 for Baby Boomers.”

High amounts of debt are typically correlated with lower credit scores; the more debt an individual has, the less likely he or she will be able to pay back loans and make payments on time. The majority of Gen Y are struggling to keep up with student loans, auto loans, home loans or rent, new healthcare costs and job locations.

According to Mainstreet.com, Generation Y’s have “an average total debt load of $28,930, including $4,113 in credit cards, $7,358 in lines of credit and $12,410 in car loans on average.” In addition, a recent analysis of government and university data for the Associated Press revealed that – in 2011 – 53.6% of workers under the age of 25 holding a bachelor’s degrees were jobless or unemployed.

These numbers can be incredibly discouraging for young people that are struggling with bad credit. Debt issues and bad credit affect an individual’s everyday life in many ways. Fortunately, there are numerous reputable businesses that offer credit repair merchant accounts – like EMB. These accounts offer young people a great opportunity to work on paying off old accounts or dispute errors on their credit score.

If bad credit is holding you back, the best way to improve your credit score is simply paying your bills on time over a long period of time. Don’t make the mistake of missing payments on bills or other financial obligations. It will definitely hold you back in the present and in the future, and in more ways than one.


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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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