Has Chase Started Approving Sole Proprietor Applications Again?
Early on in the pandemic, when there was so much uncertainty with the economy and how everything would play out, Chase made some changes to their business application approval process. In an effort to alleviate risk they were auto denying pretty much all sole proprietor business card applications. My guess is that they saw sole proprietor businesses as a more risky endeavor and didn’t want to extend credit to them. They were also targeting certain business industries and denying those with more impunity, more at risk areas. That seemed to lesson a bit late in the summer before shutting back down again this fall. With the increased offers for the Chase Ink Cash and Chase Ink Unlimited people have been wondering where things currently stand. Has Chase started approving sole proprietor applications agian?
Details of the Chase Ink Increased Offers (All Time High)
- Earn $750 after making $7,500 in purchases within the first 3 months of card membership.
- No annual fee
Chase Ink Cash Earning Structure
- 5% cash back on the first $25,000 spent in combined purchases each account anniversary year at: Office Supply Stores and on Internet, phone, and cable services.
- 2% cash back on the first $25,000 spent in combined purchases each account anniversary year at gas stations and restaurants
- 1% cash back on all other purchases
- Learn More
Chase Ink Unlimited Earning Structure
- Earn 1.5% (or 1.5X Ultimate Rewards) per dollar on every transaction.
- Learn More
Recent Application Data Points
I have collected around 10 data points since these offers have been launched. It isn’t a huge sample size but it gives us something at least. The denials still outweigh the approvals, at 6 to 4, but approvals are happening. Chase is still more cautious than they have been in the past. In the past if you were under Chase 5/24 then you had a high chance of approval. Now it sits at less than a 50% shot it appears, although it is better than the 0% it was a few months back.
A New Requirement?
The interesting thing I have noticed across the denials is Chase talks about the current credit extended to the applicants. The people denied have often been told that they already have adequate credit extended to them from Chase. And they have even gone on to include the personal cards when talking about this.
That means that people with a lot of Chase personal, or business cards, are going to have a tougher time. If you are sitting on a few cards that you no longer use and had planned on closing in the near future I would do so before applying. It should improve your chances but it is not a guarantee. Because of that only do it if you had planned on closing the accounts anyway.
Chase seems to be less willing to let you close accounts to make room for a new one than they have in the past. At least on the business side, the personal side it still has been offered. Even though they mention personal cards when discussing credit limits they will never offer closing one of those to free up space for a business card. Essentially, personal cards are used against you but it can not help you during a business recon call.
Has Chase Started Approving Sole Proprietor Applications Again? It appears that they have but they are still being more restrictive than they have in the past. If you have multiple business cards with Chase already, or a lot of personal credit with them, then your application chances are greatly diminished. Consider cleaning up your account before applying to increase your chances. Non sole proprietor applications seem to have better chances as well. If you have two or more businesses, and one is not a sole proprietor, I would apply for that one to improve your chances.