Does Personal Credit Matter When Opening a Merchant Account?

As if there weren’t plenty of things to worry about already when you’re thinking about making the jump to running your own business, you might be asking yourself, “Does personal credit matter when opening a merchant account?”

Clarifying the Question; Clarifying the Answer

Well, the answer is yes. And no.

Let’s take a look at what it is that we’re asking.

A merchant account is really just a line of credit that makes it possible for your business to accept payments by credit card. That means that when you apply for a merchant account for your business, it’s a lot like you’re applying for a credit card. Your credit score is one factor that’s considered, but not the only one. A variety of things are taken into consideration when a credit card issuer decides whether or not giving you a credit card is a good idea.

When you apply for a merchant account, your personal creditworthiness is part of the equation, but not as big of a part as it would be in an application for a credit card or a loan. It’s as if a line of credit were being extended to a combination of you your business. The bank, etc., looks at things about you, things about the industry, and things about the business itself. So, your personal credit matters, but how much it matters can vary.