Posted by William Charles on January 13, 2016
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Published on January 13th, 2016 | by William Charles

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Do The Chase 5/24 Rules Apply To Business Credit Cards?

So is the 5/24 rule in effect with Chase business cards? I have the no AF INK card but I wanted to upgrade to the INK Plus and downgrade my CSP

anthonyjh21

Before we get started, it’s important to understand what the 5/24 rule is. This post talks about it in depth, but I’ll give a brief outline below.

If you apply for a Chase branded card (e.g Chase Sapphire Preferred) and you’ve applied for more than five credit cards from any credit card issuer within the past 24 months then you’ll be automatically denied (and not possible to get approval on reconsideration). Co-branded credit cards (e.g Chase Hyatt) don’t fall into this rule and the number of credit card applications is based on the data Chase sees from the credit report they pull (so if they pull Experian and you have 6 inquiries there you’ll be denied, but if you had 3 on TransUnion and they pulled that you’d be approved).

Anthony’s question is basically does this rule apply to business cards, or only personal cards. The short answer is: no. This 5/24 rule does not apply to Chase business cards (including Chase branded cards like Chase Ink Plus & Chase Ink Cash). Below are some data points (feel free to include yours in the comments below)

Another thing to keep in mind is that if you’re not instantly approved it’s better to just wait for it to go through the normal process rather than calling in, that’s because some customer service representatives are a bit trigger happy and will deny you based on 5/24 even though it’s not supposed to apply.



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Gary
Gary

It depends if you’re applying on behalf of an actual business versus using your own SSN. I applied using my SSN and was denied based on the 5/24 rule. I don’t think it’s fair yet to say the rule doesn’t apply to business cards.

mason
mason

my recent experience confirms that the 5/24 rule does not apply to business cards.

CtownBin
CtownBin

I have a data point that will refute BOTH of the exceptions in the above post- first, that it doesn’t apply to co-branded cards, and second that it doesn’t apply to business cards. I applied for the United Business card a few months ago, and was denied specifically because I had more than 5 cards in the past 2 years.
Also- the post says that it’s based on the inquiries from the bureau they pull- IME that is also not true. They look at your credit report and see how many cards you have currently open and when they were opened!! Every bureau has access to information on every card you have, regardless of which bureau was pulled when you opened it. They get the info monthly from the card issuer. (The only exception might be new cards that haven’t had a statement close yet.)

Chris
Chris

The second part of the previous comment make sense to me (re all credit reports will show the same number of OPENED cards). As for the first part, YMMV.

Danny
Danny

tough crowd…

John
John

I opened the United Business card with no problems. I’ve opened probably 10-15 cards in the last 24 months. I’m curious to try for the Chase Ink

Jeff F
Jeff F

I was recently approved for the Ink Plus while being in violation of the 5/24 rule (About 10/24). My approval was pending and I did call in. After being put on hold for 2 minutes he came back and said I was approved.

TN
TN

I was approved for Inkplus in 12/2015 after the application went into pending. I didn’t call in and received the approval email about 1 week later. I used my SSN, had 12 inquiries, 11 new cards in 24 months and 1 mortgage in 03/15 with Chase, excellent score.

Dan
Dan

Data point: A couple months ago I applied for Ink+ and a Southwest business card. I was approved for the Ink+ but was denied the Southwest business card due to too many opened cards. The only business card I have opened is the Ink+ at this time. I had the Southwest business card a couple years ago but cancelled it last year. That’s the extent of my business card experience.

Chris
Chris

I have a question if anyone would care to answer. Currently I have two Ink (plus and bold) cards opened. Soon will be applying for the United Business card. Would it be better to close one of the Ink cards now, wait a month or so, and then apply for the United Business?

Julie
Julie

I was patiently holding off on opening new accounts for my husband until next July when he’ll have fewer than 5 new accounts within 2 years, so we could then apply for the Chase Sapphire Preferred. Imagine how irked I was when I found out he recently applied for a Kohl’s card to save a measly $15 at checkout!

Chuck

Ouch!

John
John

I think the rule only applies to Chase personal UR earning cards.

I understand that you can still apply for the Slate – worked when I applied last year.

tbradnc
tbradnc

You said, “(so if they pull Experian and you have 6 inquiries there you’ll be denied, but if you had 3 on TransUnion and they pulled that you’d be approved).”

Correct me if I’m wrong but I think you could have 100 inquiries (dramatic license) as long as you haven’t received 5 cards in the past 24 months.

And don’t forget their counting authorized users. I have read a few datapoints where that is one area of the 5/24 rule that could be massaged into an approval at the supervisor level.

Eric
Eric

I’ve always seen the rule described as applying for more than 5 cards, not getting 5 new cards. Are you sure that’s the case?

Jack
Jack

Heard that being added as an Authorized User also count as a new card, is this still the case?

5 new cards / 2 years…is this the same as having 5 new accounts / 2 years?

Chuck

We discussed this is the original post on 5/24. Seems like they sometimes mistake it to count.

MrDioji
MrDioji

The rule is 5 new accounts in 24 months, not inquiries. This would be across all bureaus. For example, if chase pulls experian, they’ll still count your Barclaycard from last year, even though Barclaycard pulls TU. The account was opened less than 24 months ago and will appear on your experian report.
Existing business cards don’t count towards the total since the accounts do not show on your personal report – only the inquiries do.

Jessica
Jessica

So do inquiries for cars or homes count or just credit cards?

Chuck

It’s new accounts, not inquiries. My understanding is that it’s just card accounts that count, not mortgage/loan accounts.

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