You Can Have Business Accounts With Bad Credit

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You need a credit card to have most merchant accounts. If you have bad credit, chances are you have been turned down for a credit card. A credit card from your checking account can be your savior.

First off, bad credit doesn't mean you can't start your own business. You will have more challenges than the average person, but you can still do it. Don't let bad credit prevent you from reaching your goals. There are ways around everything. In the long run, you should try and fix your credit, as you will need it as you get older. You need good credit to buy cars and houses among just a few things we buy as adults.

Okay, the first question asked about bad credit with wholesalers. All you need is a credit card with wholesalers. You can even use your debit card, as long as it is a Mastercard or Visa. Most wholesalers will have you fill out a few forms that are required to activate your account with them. One of those forms is a collateral or credit form. Since you are a home business, wholesalers do not require you to fill out anything about collateral or credit. This form is for bigger companies. Companies that want to get products up front and pay later from the wholesaler need to fill this type of form out. Since you are a home business, you only need to list a credit/debit card to pay for your goods. Just list your credit card information and skip the collateral section. You do not have to worry if you have bad credit. You can still set up an account with wholesale distributors.

When you put a credit card on file with the wholesale distributor, they will keep that card and use it when you make a purchase. Every time you call them with an order, they will automatically bill the credit card on file with them. You don't even have to continuously give them your credit card number every time you order something. The credit card you leave on file with the wholesaler can be a personal or business credit/debit card. Just make sure you always have money on the card as you make purchases. If your credit card on file ever declines with the wholesaler, they may cancel your account with them.

As for the bank question: They asked if they would run into problems if they try and open a bank account with bad credit. There are a couple of reasons you might run into problems if you try and open a bank account with bad credit.

If you owe any bank money, you will not be able to open a bank account with any bank. All banks have a system in place where: if you owe any bank, any money at all, it will show all banks that you owe money to another bank. Here is an example; if you owe money to Bank of America, you can't go to Enterprise bank and open an account. If you went to Enterprise and tried to open a bank account, their computer system will tell them you owe money to another bank. And they won't let you open an account until you pay that bank back.

It doesn't matter if the banks are connected through business or not. Even though the banks are not connected with each through business, the banks computers are all linked for fraud protection. So they will see all debts you owe to other banks. Then the bank will look at you like a bad investment. So clear up your debt with the bank you owe money to, or you will run in to problems.

The bank doesn't care what other debts you owe. As long as you don't owe another bank money, they will overlook all your other debts or bad credit. Banks are very lenient to open an account with them. I would say that's a pretty good deal, to overlook all my debts and bad credit(other than money owed to another bank) to open an account with any bank. They want your money in their bank.

Okay, remember how I said you only need a credit/debit card to start an account with a wholesaler? How do you keep a credit card on file if you can't get one? Obviously if you have bad credit, you probably don't own a credit/debit card. This is what you can do...Go to any bank that gives Visa or Mastercard as a debit card. Open a checking account and ask for the debit card with your account also.

Now that debit card can be used as a credit card with any wholesale distributor. Make sure the credit/debit card from the bank is a Visa or Mastercard. Now any purchases you make with that credit card will be pulled out of your checking account. This credit/debit card you get for your checking account is interest free, so it's better than a regular credit card. And you can only spend the money you have in your checking account, so you are less likely to overspend.

This is the tricky part: What if you owe the bank money? If you owe any bank any money at all, you won't be able to start an account with that bank or any other bank. That means you can't open a checking account and get your Visa or Mastercard. The only way around this is to pay the bank you owe money to. If it is a lot of money start saving now. The only way to get you out of this mess is to be responsible and pay that bank back. You will always need a bank account in your life, so it's well worth it. Having a bank account will make life so much easier on yourself.

I wouldn't recommend a secure credit card. Secure credit cards are probably the worst out there. They charge you interest on your own money. So don't even think about a secure credit card. You will just make things worse for yourself. Go pay back that bank you owe money to. If you don't owe money to any bank; go open that checking account and acquire your credit/debit card. Remember, make sure the bank offers a credit/debit card that is a Visa or Mastercard, so you can use it anywhere like a credit card.

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Source by Lisa Page