Too many credit applications?

[AronVic77]

Im a bit new to the credit card game and wanted to see what other peoples take would be on the best way to move forward with my current situation.  I recently was approved for a business loan of $50k.  I will be quitting my current job (have to) in 2 weeks to go full steam ahead on the new venture.  With that I figured I needed to up my available credit so my utilization doesnt take a dump.  I applied to way too many different credit companies on the same day. FICO 8 was above 720 for all CB's. Not one business card was approved even though I have had my LLC for over 1 year, and have 50k in the biz checking account.  

*Approvals:  Chase Freedom Unlimited ($500 CL/ prior settled charge off from 2021), Wells Fargo Reserve ($3500), NFCU Flagship ($25k), Lowe's ($1200), Care Credit ($13500), Capital One Savor ($1k), Local CU Checking LOC ($5k)

*Denials (personal):  AMEX GOLD, Chase SP
*Denial (business): AMEX Platinum (was pre-approved/ denial reasons stated not enought income, bank statement to low, no credit line similar), AMEX Blue Cash Preffered (same reasons),  Chase Biz Ink, Chase SR.

I know Im screwed with getting anything from chase for 2 years due to the 5/24 rule, but the AMEX Blue caught me off guard.  Did they deny because I applied for the other cards too soon?  Now that I have all these new accounts do I need to wait at least 6 months (or longer) before applying with AMEX again?  What is the best way to move forward with business credit?  I have a ton of biz expenses that I would like to charge somewhere to get points, so should I just use personal cards to do that?

Thanks!

[Vinjints]

Is that six new cards, a line of credit, plus a business loan that are all new approvals? Plus an additional six cards you app'd for but were denied? What time span did all of these applications occur in?

The answer to the thread title is yes. 

[JoeRockhead]

You potentially set off alarm bells for aggressive credit seeking / bust out fraud concerns with all the inquiries. 

You should also be aware that Chase in particular could very likely close that Freedom Unlimited when they see all the other approvals hit your reports.

I would recommend you let the dust settle and don't apply for anything else for a minimum of 6 months. 

I'd also strongly recommended against using personal cards for business expenses.  Not only does it have a negative impact on your personal scores if you carry higher balances, it also complicates accounting and tax matters. 

Most importantly,  it really blurs the lines and can completely erode the legal protections of your LLC and make it easier for courts to hold you personally liable for any debt the business incurred.

[zerofire]

Oh, bother. You really messed up. That is definitely way too many applications.

You had an ok idea but you did not plan your execution. For example all of the AmEx and Chase applications can be seen by the respective issuer regardless of business or personal. So all the AmEx applications got into a pile up and all of the Chase applications got into another pile up. Next 720 is way too low to start doing sprees after getting a 50k business loan. After Covid all the lenders have tightened up and the minimum with good planning should be 755, planning minimum 740.

As it stands your whole credit profile is now overloaded. The best way to proceed is no applications for the next 2 years, this is for all lenders. As for charging business expenses, get used to writing checks and using a debit card. Using your personal cards for business is a poor idea. It will pierce the corporate veil making business decisions personal. If the business goes bankrupt you can be held liable if the veil is pierced, likewise if the business does something illegal(lots of businesses do questionable things). Normally you are a different person to the business so it is not your personal issue. If you have existing business credit cards you can use those. Otherwise you will need to wait the 2 years or add someone else that can guarantee funding for a credit card. Next time plan your spree instead of just applying randomly. I am sure someone might have considered a single 8-10k credit card for your business with the extra as a buffer but now it is too late. Your inquiries are at lol/24.