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The Bottom Line: Credit Card Processing Capability Depends on Credit

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Business owners often ask why their credit rating score has any influence over credit card processing
application acceptance. This article addresses why a merchant's credit score plays a role in risk assessment.
Moreover, the article lists way to raise one's credit score in an effort to receive credit card processing
approval. (A higher credit score will also foster favorable outcomes when any type of financial service is

credit card processing, accept credit cards, credit card processing application, credit score

Article Body:
Copyright 2006 William Hamilton

When you apply for credit card processing capability for your website, there are a multitude of factors that
underwriters take into consideration when deciding whether or not to accept your application. These factors

* The type of business you own
* How long you have owned your business
* Trends in your business earnings
* Trends in your industry
* Your collateral: machinery, equipment, property
* Your personal credit report

When a merchant's credit card processing application is evaluated, their personal credit rating is assessed
and significantly affects the outcome of the decision. A poor credit rating may preclude an application from
being accepted. But what does your personal history have to do with your business potential?

As far as your credit card processing application is concerned, everything. How you run your personal life is
indicative of how you will run your business, helping the underwriters of your credit card processing
application to determine whether or not you should be considered a risk. Everything that is included in your
credit report is relevant information for the credit card processing underwriters. This information includes:
* Whether or not you made personal credit card payments on time or at all, over drafted your accounts, or
filed for bankruptcy may indicate your ability to repay future creditors.
* Whether or not you have enough credit for your credit card processing underwriters to be able to
satisfactorily discern your ability to repay debts.
* If you have multiple inquiries into your credit rating by potential creditors, this shows negatively as well.
This means that others have decided you are a risk, which may indicate to your current credit card
processing underwriters that they should decide the same way.

Research Your Credit Report

One way to make sure that your personal credit is an asset to your credit card processing application is to
make sure that it is as high as possible before you send in your application. It is free for you to check your
credit report with the three major credit agencies in the country – Experian, TransUnion, and Equifax – once
every year. Staying up to date with your credit reports will let you know right away if there are mistakes due
to inaccurate reports or identity theft. The sooner you find out, the sooner you can get started getting these
things corrected and removed from your credit reports.

How To Raise Your Credit Rating

There are many ways for you to raise your credit rating if you feel that it is inadequate to get the credit card
processing application results that you need. Some credit report improvement techniques take a great deal of
time before they affect your credit rating. Others begin to improve your score immediately.
* Make sure that all your information is updated. Everything listed has an expiration date of seven years. It's
up to you to make sure that seven year old issues are removed at that time. Also, just because you paid off a
bill doesn't mean that the company reported this update to the credit reporting agency. This may be up to
* Pay your bills on time, every time. Every single late payment is listed on your credit report and negatively
affects your credit score. This will directly affect your credit card processing application; it's a 1:1
correlation as far as how underwriters will predict your future repayment efforts when weighing the merits
of your application.
* Don't apply for credit every time it's offered to you. If you are constantly applying for credit, most credit
card processing application underwriters will assume that you are not managing your finances well. Keep
enough credit cards to establish credit, but not so many that it's too much to handle. Three to five cards is
* Don't avoid credit cards and loans. You need a credit history to have a good credit history. Start early,
make all your minimum payments and stay on top of your balances. If you go beyond your means, fix the
situation as soon as possible.

The bottom line is that your personal credit reports and rating will directly affect the outcome of your credit
card processing application. Maintaining the best credit possible will help you make the most of your
business when it comes time to apply for credit card processing capability. And if worse comes to worst,
there is an alternative solution. Many credit card processing companies allow a merchant to use a cosigner.
Choosing someone with a favorable credit rating score may help you offset the negative effects of your own
credit rating.

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