I am actually posting this for my dad. His credit was 750 about 6 months ago and now its only 668. On his report it says he has about 28 recent inquries. The thing is that he owns a corporation and has over 80 employees. Anytime a car is bought or a loan is taken out for the business it goes on his credit.
Is there a way to fix his credit, he has perfect payment history for the last 20 years, owned multiple million dollar homes etc.
2007-12-03 09:49:39 · 5 answers · asked by Anonymous in Business & Finance ➔ Credit
Nope, there's no way to fix that. The inquiries stay on for a year, and after that they stop affecting it.
Isn't there someway to separate the credit for the business from his personal credit?
2007-12-03 09:53:55 · answer #1 · answered by Tracker 6 · 1⤊ 0⤋
It is probably not the inquiries that are causing all of it. Inquiries only account for 10% of the total score. Which mathmatically could happen, but in reality it probably will not drop that much. The only thing that will fix this is time. Inquiries are only counted for scoring for a year, with the biggest effect the first 6 months.
The bigger chance of the score dropping is that if you say that a loan is taken out on his credit. If that is the case, anytime new credit/loans are opened they will drop a persons score for a few months. But this soon recovers within a few months as long as the payment history is good.
The question you probably should ask your dad is why if he has been in business for any length of time and the company has a good history, why the banks are still requiring a personal guarantee? Hopefully with a Corporation that has 80 employees he has an accountant. If so he probably needs to talk to them about this. Because if the Company ever would fail, he is going to be responsible for all of the cars.
2007-12-03 10:03:16 · answer #2 · answered by OC1999 7 · 1⤊ 0⤋
28 "hard inquiries" will definitely reduce your credit score....there's no fixing this other than the passage of time....Perhaps a year or two....668 is not horrible credit...It's average...so it's not a total catastrophe.
You dad definitely needs to open up a separate line of credit for his business that is independent of his personal credit file.
2007-12-03 10:14:52 · answer #3 · answered by CatDad 7 · 0⤊ 0⤋
Sorry, only time will fix this.
Inquiries show for 24-months but only affect scores for 6-months.
2007-12-03 09:57:23 · answer #4 · answered by ? 7 · 2⤊ 0⤋
The only thing that fixes this is time. Sorry but they will cycle through.
2007-12-03 09:53:53 · answer #5 · answered by golferwhoworks 7 · 2⤊ 0⤋