Bad Credit

3 Ways You Don’t Realize You Have Bad Credit

It is important to check your credit on a regular basis so to be able to spot errors in time. Even if you pay your bills on time, you should always keep an eye on your credit report.

Be aware that traditional banks and most processors will refuse to open a merchant account for you if you have bad credit. The good news is that for payment processing companies like eMerchantBroker, bad credit is not a problem at all. You can easily open a secure and reliable bad credit merchant account with EMB, the #1 high risk merchant account provider in the US that has an A+ rating with the BBB.

Below you can find how it is possible to have bad credit without being aware of it.

  1. Errors on Your Credit Report

A 2012 study carried out by the Federal Trade Commission shows that one in five Americans had an error on their credit reports. This means they havemixed files, a re-aged debt, messed furnishers or have been a victim of identity theft.

A misspelled name or erroneous address will not have abad impact on your score. However, a collection account on your credit report past the date can negatively affect your score. That’s why you should regularly check your credit for errors. In case you find one, do not hesitate to dispute the error with the proper credit bureau.

  1. You Didn’t Know You Had a Collection Account

Collection accounts can badly damage your credit score. They can appear as a result of a debt that is not connected with a loan, such as a medical bill or an old delinquent utilities account. Collections accounts could also be an error. If you find one on your credit report, verify the debt without delay.

  1. Identity Theft

Identity theft is a serious problem for credit. If a thief uses your Social Security number totake out fraudulent accounts in your name, you could have missed payments, high balances, and multiple inquiries on your credit report.As soon as you find out you have been victimized, report the fraud to the proper authorities, your creditors and the credit bureaus just on the spot.

Sudden calls from debt collectors, unexpected loan denials, and a mailbox with subprime credit card solicitations signify your credit might be bad.Even if there are no signs, check your credit regularly so you can observe any issues.

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