Bad credit is nothing to mess with. It usually occurs when things go wrong in your life. A job ended without warning, or those that owe you could not pay. Needless to say, time and time again, you were unable to pay your bills. Things happen and you ruined your credit and took the sacrifice.
Now you are ready to try again. You’ve taken the plunge and you cleaned up what was out there on your credit report. But the horrible part is, those late payments and overdrafts and possibly a bankruptcy, will hang out on your report for up to ten years. The credit will begin to clean up in seven years, but the bankruptcy will continue to haunt you for ten years.
Trying to start over
With your aspirations of beginning again, this will be a detriment, but it’s not the end of your career. Your merchant account with bad credit can be obtained, but with some extra baggage. You likely will pay a fee for your high risk account, whether your business is in the high risk pool or not. Since you did the slow payments and had issues, now you will pay a little extra to start new. Your fees will be slightly higher than those of other similar accounts. Don’t dismay, at least they approved your account.
Of course you will
Begin searching the web for a merchant account that will meet the needs of your business. Then fill out their information on their page. Be honest with them, they will be checking.
Some of these high risk merchant services have banks that are overseas and they don’t have to play by the same rules that the land lover banking institutions do. So this eases up some of your credit woes. Meaning, they might be a little more lenient than what you expected. But, with the high risk account that you will have to have, your fees may be a little more. So be prepared, as they will be asking for a reserve amount that will be put into a sort of, Escrow account. This will happen for the next three to six months.
You will have to keep your payments on time and all of your bills paid. As long as your credit continues to be sparkly clean, they will continue to work with you.
When the bills are paid
After the trial period is over, your money sitting in that setback area will be returned to you in full. Make sure that it says that in your contract. Read all the fine print and follow the rules.
Is your nose clean
You’ve had a hard road to travel and now your six months is over. You accomplished a lot and got things rolling again. Congratulations on your new business and your merchant account. You followed the rules and found a merchant account with bad credit, and grew it into something wonderful. Isn’t that a wonderful feeling? You didn’t let things get you down and you fulfilled a goal. Nice work on your accomplishment and your future.