I’ve had credit challenges all my life due to the combination of student loans and public interest jobs that didn’t pay well or sometimes not even on time. About five years ago, I started my own business, and it’s thriving. As a result, I’ve been able to pay off all my credit card debt, pay off one of my car loans, and haven’t had a late payment in many years.
For the past 18 months, I’ve routed most financial transactions through cards whenever possible to get points or miles, and then pay them off without carrying a balance. I paid one vehicle off early and am on track with the other one to pay it off in three years or less instead of five. So my credit score over that time period moved from mid 600s to mid 700s.
Early on, I only had a couple of credit cards, with low credit limits, high interest, and little or no perks, but over time, I got more offers and so wanted to get better cards with better terms. Some of my credit card companies increased my limits without me even asking.
My single-owner business is separately incorporated and has been in existence for 5 1/2 years. I needed to get a computer and line of credit for my business. Long story short, even though I thought the inquiries would only show up on my business credit record, the credit card company and lender checked my personal credit, and so now I have multiple inquiries within a short period of time.
I read some information where a dip for multiple inquiries could make a difference, but that difference would be offset by bigger credit limits and lower credit utilization. In a couple of months, I increased my business credit limit by $50K, and my personal credit by $12.5K. I’m still not carrying a balance, but my score has gone down 75 points!
Is there anything I can do? I don’t need more credit right now, but it’s just very frustrating when I’ve worked so hard to improve my score, that it reflects so poorly on me, especially when my creditworthiness and ability to pay has never been higher. I don’t know how long it will take to return to what it was before, but am curious whether there’s anything I can do to accelerate that happening.