Posted by Chuck on January 21, 2016
Business Credit Cards

Published on January 21st, 2016 | by Chuck

73

Chase Credit Card Limits (5/24) Soon to Apply on Business Card Applications

Not long ago, Chase was the favorite of credit card churners due to their wide-range of available products with great signup bonuses. The bad news came when they cut down on approving new cardholders who have five new credit cards showing in their credit report. This became known as ‘the 5/24 rule’ in which Chase won’t approve new cards for those with five new accounts showing as opened within the past 24-months.

Two important points about 5/24:

Based on a trusted source who is an expert in the credit card industry, Chase will soon be applying 5/24 to business cards as well, meaning that INK cards will be very hard for most of us to get. It looks like this new rule will start at some point during the month of March.

Get it while you can…



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jcm
jcm

Hmm, I have three cards opened in the past two years, I’ve never had the CSP, and I’ve never had an Ink. I do have a little 1099 income on a Schedule C ($9K in 2014). What’s my optimal strategy to get bonuses? I spend about $3K a month in real spending, never done any MS (and not super keen to start). Thanks for any advice you can offer.

Mark O
Mark O

Sign up for the CSP now and do a month of spend and then sign up for the in late Feb and you should be able to hit the spending with your reg 3k per month no problem.

John
John

Even if the next two cards you apply for are both Chase cards, the 5/24 rule will not apply to you. (Since you have only applied for 3 cards in the last two years.) And it sounded like the only cards you are interested in soon are (possibly) the CSP and an Ink.

This news story would be relevant if you planned for (say) four cards before March 1. Is that something you want to do? I sense not, but feel free to clarify.

I share your unwillingness to get involved in MS. But a much simpler option is to do a little research (courtesy of Doctor of Credit) on bank account bonuses. Open the card first then open the bank account and fund it with the card. Often you can fund both a savings account and a checking account and run up 3-4k easy. You just have to lower the cash advance limit to something small first.

I have used this approach a lot in the last 6 months and made a lot of money.

Eric
Eric

Isn’t funding a bank account with a credit card technically MS?

John
John

“Manufactured spending is the process of purchasing something that is the equivalent of cash such as gift cards, money orders, and other items with a miles/points credit card. The goal is to earn miles or points for these purchases and then quickly and easily liquidate the funds and use them to pay back the credit card.”

http://thepointstraveler.com/beginners-guide-to-learn-how-to-travel-for-free-with-miles-and-points/intro-to-manufactured-spending/

escot
escot

good point John…. John wants to hide behind definitions, looking down his nose at ms, while doing something equally, if not more so, “creative.” Run with what works…. in moderation. Corporations & corporations may be people too, so says SCOTUS, but they’re neither to be bowed down to, nor trusted.

jcm
jcm

Great thanks to you both for the advice. I think I’ll skip the Freedom, to avoid jeopardizing the Ink.

TravelBloggerBuzz

Devastating!

Joe
Joe

Really want the Ink at 60k but stinks the AF isn’t waived on that offer. Do I just bite the bullet and apply, and essentially net the normal 50k UR points, since the $95 AF due will eat nearly 10k points?

No strategy to really avoid this right?

Brandon
Brandon

Can anyone give me some tips on what to put on my app..I have no business whatsoever but still want to give it a shot. I plan to use my SSN, but I have no idea what type of business I should say I have, what I should call it, and what amount of income I should put.

I’ve read reports of people without any business getting approved, but it’s not clear what they’re actually putting down on the app. I’d like to apply this week but am just confused and what would give me the best shot in terms of application information

EB
EB

ssn, sole proprietor, X consultant, regular income

done that every time, no issues. never called in to explain

Eric
Eric

Why “X Consultant” instead of just “Consultant”? By “regular income” do you mean your salary from your normal job (ie 50K)? Did you write your name as your company name?

EB
EB

honestly i just make up a name for the company and put my regular income from my employer. dont over think it

EB’s Escort Service sounds like a good name for next time

Scott
Scott

How will this be determined if you have an LLC/EIN? Will they use the business credit report? Personal? Both?

Maxx
Maxx

Under the same LLC, one owner already has a Ink Plus. Can the other owner apply for the Ink Plus using tax id of the same LLC? Thanks.

George Smiley
George Smiley

Did your source mean ‘house’ business cards only like Ink Cash and Ink Plus or all cards including co-branded cards like United Business?

William Charles

Just Chase branded cards (Ink Plus/Cash) from what I understand.

NoonRadar

Does this source have any inside info from Chase about this or it it just their expert opinion? If no inside info, why March specifically I wonder…

William Charles

I imagine it’s inside information, but let’s not speculate too much so we can keep Chuck’s source in tact!

harry
harry

question:

I have 5 company under my name.
5/24 is for person or for company??

Frequent Miler

What about the United Business card or Marriott business card? Are they safe since they are co-branded, or in danger since they’re business cards? Any idea?

William Charles

Safe, they are co-branded so shouldn’t be an issue. Just on Chase branded cards.

Eric
Eric

John,

I’m guessing you are you trying to prove me wrong. However, I think this definition strengthens my argument. You are “purchasing” actual cash and will probably use at least some of it to pay back that credit card. A great example is the Citigold thread. I saw many people discuss paying back the credit card they used for funding right away.

John
John

Hi Eric. I am not trying to “prove you wrong.” This is just a question of what most people mean when they are using a word. There isn’t a right or wrong meaning to any word, just what a person means when he uses it.

Most people who claim to engage in manufactured spending do not include the funding of bank accounts with credit cards within the span of what they mean. If you’d like another example of a knowledgeable person discussing this, you might want to glance at this article by our very own Doctor of Credit (“How To Reach Minimum Spending Requirements Without Manufactured Spending”).

You will see that one of the ways he mentions is to “fund checking/savings accounts.”

https://www.doctorofcredit.com/reach-minimum-monthly-spending-requirements/

Eric
Eric

I actually agree with you. I would have just said that it’s not “traditional MS”. I saw Shawn mentioned reselling merchandise as MS. I don’t agree with that because you are actually buying actual products in that case. My point was really that jcm doesn’t want to do any kind of MS. In my opinion technically opening a bank account is a form of MS.

John
John

Well, JCM may be a friend of yours; perhaps you have spoken with him and that’s how you know for sure that he’d never want fund bank accounts with a CC. I only know him from that one comment in that one thread.

So when he said he didn’t want to do MS, I had to go with how the phrase is often used (e.g. here on this site), in which it does not include CC funding. Thus I thought I’d share with him my experience: which was that he could swiftly meet most or all of the MSR of a card like the CSP by opening a single pair of bank accounts. That, I thought, might be appealing and different from the headache he might be envisioning with (for example) buying and reselling thousands of dollars worth of gift cards.

Hope that makes sense, Best wishes… J

Eric
Eric

Your explanation is too rational to argue with (I’m not being sarcastic).

Mark
Mark

Does the 5/24 rule include accounts that are AU only are? Do store card and secured installment accounts counts towards the 5? Thanks in advance.

Mark
Mark

Also my mortgage is only 13 months old? I know it said “cards” so just trying to save an Inquiry on an impossible app.

Zachary
Zachary

I just applied ink plus in branch, but I didn’t get instant approved. Should I call? Thanks.

William Charles

No, never call.

Zachary
Zachary

Okay, thanks. I will wait.

Emily
Emily

I just applied for the INK PLUS using the invitation number online. It told me to call them to discuss. Should I call? Thanks.

Emily
Emily

I Just applied for the Ink Plus online using the invitation number (targeted by mail). It told to call them to further discuss. I do have 5+ approved cards in last 24 months. Should I call since it wasn’t denied or wait? Thank you.

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