According to WSJ JPMorgan Chase is looking at open up second look applications to a number of lenders for cobranded cards. In this instance an applicant that would normally be denied by Chase due to credit worthiness would be given a second look by another lender and in some cases be approved.
This effectively derisks these cardholders for Chase and they are able to approve more applicants, something that cobranded partners are constantly pushing for. WSJ stated that rejection rates have been a ‘constant source of strain’ for the United partnership.
Discussions are in the very early stages and it’s unclear if applicants would even know their debt is being carried by a different lender or if that lender would appear on the card. It’s also unclear if this would only be used for credit worthiness or would impact things like once per lifetime or 5/24 rules.
I’ll be surprised if anything eventuates from this, it reads to me that Chase is seen to be doing something for frustrated partners.
