Do you believe the myths about credit? Did you know they can cost you a lot of money? What’s beyond these myths? How can you get a bad credit merchant account and bad credit merchant funding easily? The answers are found below.
The Truth About Credit Myths: What About a Bad Credit Merchant Account?
As you know, credit plays an important role, especially when it comes to getting business funding from a traditional lender. Thankfully, with a reputable alternative online lender, you can obtain the necessary capital without major challenges, which is also true of a bad credit merchant account. Only, you should look for a respectable financing provider so to enjoy the best deal for your business.
Now, let’s move forward and pay attention to some common credit myths to find out the truth that you should know by all means:
- There’s No One Without a Credit Score
In fact, not all people have a credit score. The Consumer Financial Protection Bureau reports that 19% of US adults and 46% of people living in low-income neighborhoods have no credit score.
- Good Credit Is the Result of Wealth
Your credit score isn’t conditioned by your income.
- Going into Debt Is Necessary for Building Credit
To build credit, you shouldn’t necessarily accumulate debt.
- You’ll Improve Your Credit if You Carry a Credit Card Balance
In fact, this won’t probably affect your credit at all. According to a recent NerdWallet survey, over 2 in 5 Americans think that if they carry a small balance from month to month, they’ll be able to better their credit scores. On the other hand, 1 in 5 thinks it can have a negative impact on their credit.
- Making Your Bill and Loan Payments Well Will Improve Your Credit
Of course, there’s no second thought on paying your bills on time. This also refers to paying your rent or paying back your loan. However, there’re lots of people who pay bills that aren’t reported to the credit bureaus.
- Don’t Make Inquiries: It Can Ruin Your Credit Score
In fact, making a credit inquiry doesn’t have a great impact on your score. This will usually be from 5 to 10 points.
- Your Credit Matters Only When Borrowing Money
Good credit isn’t only important for getting a credit card, mortgage, or another type of loan. Your credit score will play its significant role also when renting apartments or getting this or that type of cell phone service.
What is more, your credit history can bring its impact on the cost of car insurance and utility deposits. Beyond that, your credit score can even play a decisive role in whether you can get the job you’ve applied for or not.
Building good credit is something everyone is interested in. Unfortunately, there exist several myths or misconceptions about credit. Wrong information can create lots of problems for you when building your credit. That’s why it’s important to be equipped with the right knowledge and information about credit so that not to fall into obstacles. Just go through the above-mentioned points and start building good credit from now on!
Author Bio: As the FAM account executive, Michael Hollis has funded millions by using business funding (and bad credit merchant account) solutions. His experience and extensive knowledge of the industry has made him a finance expert at First American Merchant.