Chase Tightens Up On Business Credit Card Applications
A slew of recent data points tell us that Chase is tightening up on business credit card applications. Approvals now are less common than before (which already tightened up last year). From speaking with several people and data points on various websites, here’s what we can gather on this new trend.
Over the past week, Doctor of Credit pointed out that Chase had changed the verbiage and requirements online for business credit card applications. Also in the past week, people in our Facebook group, on Reddit, and various other travel blogs had the same data point:
Chase denied me for a business credit card. The reason for the denial was a lack of funds in Chase deposit accounts.
While this in itself isn’t worth much, the fact it popped up in numerous places at the same time was interesting. I messaged some of these people privately to ask for more info. Here’s the data on those denied for “lack of funds in deposit accounts”
- All of them applied as sole proprietors.
- All of them had previous credit cards with Chase.
- None of them had checking, savings, or CD accounts with Chase.
What Does This Mean?
I also saw data points for people who were approved within the past week and engaged some of them. Those approved were outside of these data points. It was a simple line in the sand.
- If you’re an LLC or incorporated business with documentation, approvals continued like we’ve experienced before.
- The non-sole proprietor applications typically didn’t have Chase business checking accounts, so this doesn’t appear to be a deciding factor. (only 1/10 people I talked to with an approval also had a checking account)
- If you’re a sole proprietor and don’t have any cash sitting in a Chase account (personal or business), denials are very likely–if not 100%.
The data points to Chase wanting security. In these unpredictable times, offering credit to customers who aren’t providing security is risky. Chase wants something they can grab if you miss payments. If you’ve got cash in a CD or checking account, etc. they can take that to cover the bill. If you’ve got nothing for them to hold onto, you’re probably not getting that business credit card.
New trends are always interesting in this hobby. It was worth investigating to see what’s behind this new trend with Chase business credit card applications. The approvals point to a new data point: sole proprietors are being denied if they don’t have deposit accounts with some cash in them as a security for Chase to hold onto.
Going forward, if you want to get a Chase business credit card, sole proprietors will need to have some type of deposit account. At a time with elevated welcome offers from the United Business Card or the always-strong welcome offer from the Chase Ink Business Preferred, applying for these cards is part of a strong miles & points strategy. How you pursue these cards may need to change if you’re applying as a sole proprietor. Bear this in mind, in addition to their other application rules.