Too many credit inquiries pulled? What to do next

Have you had too many credit inquiries pulled?  It sometimes causes problems when applying for a business loan.    Business owners get turned down for a business loan for having too many inquiries. This article will consider what to do if your credit has been pulled too many times.

Other helpful actions
Recent credit inquiries
inquiries from mortgage companies
and car loans

Talk to a representative
Ask for the criteria
Hard or soft pull

too many credit inquiries pulled

If you need a program that will not deny you for too many credit inquiries, apply below to request offers even with a lot of inquiries.

Complete the secure Docusign 30 Second Application now.
Or call us at Tel:  1-919-771-4177, or Get funding with too many credit inquiries pulled here. 

FAQ Frequently asked questions on too many credit inquiries pulled

I applied for business loans. What can I do if I had a lot of inquiries pulled?
Review the inquiries to see if you did apply and submit applications or requests with all
of the lenders. If not then you can dispute the inquires that were not valid with the credit bureau
and request they be removed. If you intend on applying for more business loans then you can ask
in advance if they credit pulls will be hard or soft pulls. A hard pull is still acceptable if you are interested
in the program.
How much do inquiries hurt my credit?
Credit inquires are the least damaging to your credit compared to late
payments and other derogatory credit items. Your credit score typically will recover
from credit inquires more faster than late payments.
I am applying for a business loan. Can I just give the lender a copy of my credit
report and tell them to use my copy and not pull my credit.
Your own copy of your credit report is not accepted by lenders. They want to pull
their own credit report and sometimes look at all three credit bureaus. They do not want to
begin accepting outside credit reports. Consumers get credit outdated credit reports from many
different third parties vendors that may not contain the most updated information. Those reports have different formats
and may not have anything that happened since the consumer pulled their own report, such as filing
bankruptcy or any newly reported derogatory credit. Lenders do not want it to be known that they
are accepting outside credit reports from consumers otherwise some consumers will demand it and lenders
can be accused of inconsistent and discriminatory business, credit and lending practices from one applicant to another.
How do too many inquiries hurt my credit?
The main way too many credit inquires hurt your credit is by lowering your credit score short term.
This is especially true if you a significant number of inquires in a short period of times such as one or two weeks.
Can I get a business loan without having lenders checking my personal credit?
Not much. Lenders sometimes are able to check credit in bulk at the credit bureau and
issue pre-approvals based on basic numerical factors. Later in almost all cases, credit will be checked
before an offer is made and funding takes place. You should not expect to be able to get a business loan
without personal credit being pulled.

“I had my credit pulled too many times and can’t get a loan.” A broker sent my file out a bunch of lenders and now I can’t get approved for a business loan.  What can I do?
They told me my file has been shopped and I have too many inquiries.   What kind of business loan can I get now?
“They pulled my credit too many times”

In general, your credit and credit score recovers from inquiries faster than any other type of derogatory or adverse action.    A credit inquiry may drop your score a few points for a relatively short amount of time.

Do inquiries hurt my credit?

A credit inquiry is often part of the process of applying for credit and should not be considered a negative by the applicant.  Lenders also know that applicants will have some inquiries.

How many inquiries are too many?

There is not one single answer to the question of how many inquiries are too many.   This varies on a case by case basis.    Older credit files can have more inquiries before they are impacted.  Another  difference is that some inquiries are necessary and some credit inquires you cannot avoid.

Too many credit inquiries pulled
Options if too many credit inquiries were pulled.

Other helpful actions

Actions you can take if your credit has been pulled too many times

recent credit inquiries

Count the most recent credit inquiries. Keep a basic idea in mind of which companies the credit inquires are from.   Make lenders aware of the credit inquiries in advance.    Some lenders will then manually review and consider the inquiries and possibly overturn any denial.

Inquiries from Mortgage Companies and Car loans

If some inquiries are from mortgage companies or for car loans, those may not be count against you.   Tell the lender if you have these.

Talk to a representative

When applying for financing, try to talk to a representative that knows the lender’s criteria and can talk to you about it.   Ask in advance if they will decline for too many inquiries within a certain amount of time.

Ask for the criteria

Ask for the criteria. Ask lenders as much about their criteria as you can.   You may be able to find out that you will very likely be declined for a business loan or personal loan.   You can decide not to apply and avoid the inquiry before it is even pulled.

< a href=”https://www.smallbusinessloansdepot.com/articles/too-many-credit-inquiries-pulled/#hardorsoftpull”>Hard or soft pull

Find out if the pull was a hard or soft pull

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Not enough Deposits: Business loan declined?

Business loan applications are sometimes declined for not enough deposits.
Businesses have used cash flow loans to a great extent in recent years to finance their businesses.    The business account has limited activity or no activity in one of the most recent months.
How can your business overcome being declined for a business loan for this?   There are several tips that your business can follow to get financing, either right away or in the short term.   Apply below or see our FAQ Frequently asked
questions below :

Complete the secure DocuSign 30 Second application.
Or call us at Tel:  1-919-771-4177

Our Small Business Development Center assists businesses in overcoming these obstacles so they can focus on making their business prosper.

FAQ Frequently asked questions on being declined for a business loan for
not having enough deposits

My business was declined for not having enough deposits. How many deposits do we need each month?
The number of deposits your business needs depends on the type of loan the business is applying for. For a merchant cash advance, 5 deposits or more per month is best. Other business loans may require more or less.
Our business had more than 5 deposits per month, so why were we still denied for not having enough deposits?
Many businesses are declined for having deposits that are transfers from other accounts or deposits that are not from the operation of the business. Those types of deposits are not considered for an approval.
Our business only has 2 or 3 larger deposits per month. How can we qualify for loans that require more deposits?
Get more deposits per month and more customers. Lenders consider a low number of deposits into a business account as higher risk because it means the business has fewer customers that it earns revenue from. Losing 1 customer will impact revenues and ability to repay a loan much more. Some businesses request their customers to make smaller, more frequent payments. This shows a steadier income which lenders consider lower risk.

Not enough deposits per Month
Has your business been declined for not having enough deposits per month?

How to get approved.

Talk to lenders in advance and find out if the lender has a minimum number of deposits per month needed to be approved for financing.  We can direct your business to these programs so that you can apply for the right program and can get approved.

Other options

Make more deposits immediately during the rest of the month and apply at the start of the next month.   A deposit to a business checking account statement is often from several customers.   Retailers usually have several checks and cash from several customers, go to the bank and make 1 deposit.    Instead of 1 large deposit, break the deposit into several smaller deposits over the course of 2 or 3 days.

Talk to the Merchant Cash Advance companies and ACH business loan lenders directly about being declined and ask them how you can get your business approved.   As your business grows, it will add more customers.  Having deposits from more customers will increase the number of deposits per month into your business account.   As a result, this will make your business a better risk from the lender’s point of view.   The number of customers a business has is an important part of looking at risk by lenders.
For example, restaurants have hundreds of customers per week.   As a result, they will show many deposits per month.   Restaurants that lose a few customers only lose a small percent of their customer base.   A business that has 4 large customers loses 25% of their customer base when they lose just 1 of their customers.

Possible solution:

If you know the deposits you make into your business checking account have multiple items, you can tell the Merchant Cash Advance company or ACH business loan company.
What are multiple items?
Multiple items means that the funds in the deposit are from more than 1 customer.    If the merchant cash advance company knows this, you can get a copy of the deposit from the bank.   The copy of the deposit will show the items deposited. If it is 5 items, you may get credit for 5 deposits instead of 1.     You may be able to get the MCA company to change the decline to an approval.   A number of ACH lenders and merchant cash advance companies are open to this.

If this does not work, ask how long you have to wait before they will consider you again.  Be clear on what they want to see the next time so you will not be declined again.

Get working capital through other loans

If the options above do not work or you cannot wait, your business can consider other types of business loans.   Which ones are best depend mostly on your company’s profile.    Choices include:
– Monthly Term loans up to 48 months based on Tax Returns
– Accounts Receivables Financing
– Business loans based based on Real Estate or Equipment Assets.
Business loans based on real estate, equipment or accounts receivables will usually not have this requirement.   Having collateral that covers the loan amount means that cash flow is not as critical.    The number of customers is also not important.

Unsecured loans depend heavily on cash flow and as a result, the cash flow of the business is scrutinized much more.    Businesses applying for unsecured loans should also have financial statements that show the business making money and having net income.   Many businesses do not show net income and this hurts their request and also causes declines.

The SBA small business administration also has excellent resources on alternative business loans