How Does the Chase “5/24” Rule Affect Businesses With Separate EINs?

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Applying for business credit cards can be confusing.  But it’s also a great way to increase your miles & points balances with your business expenses!  That’s why I get lots of questions about the ins and outs of business credit card applications.

And the bank application rule that trips up the most folks is the Chase “5/24” rule.  This rule makes it difficult to be approved for most Chase credit cards if you’ve opened 5 or more cards from any bank within the past 24 months!

I’ve helped to clear up confusion over whether or not you can use your own name or social security number on a business card application (yes to both!).  But what about when your business has an EIN (employer identification number)?  Will your application still be subject to the same “5/24” limit?

Million Mile Secret Agent G. Fong Asked:

Will they use my social security number or the company’s EIN to get the “5/24” count?

Chase will look at your personal credit report to get your “5/24” count.  And even when your business has an EIN, you still need to add your social security number to your business card application.  So unfortunately, having an EIN will not help you get around the Chase “5/24” rule. 🙁

But depending on your situation, you might still have options.

Are You an Authorized User?

If you have been added as an authorized user on someone else’s account, that card will likely count toward your “5/24” limit.  Some folks have reported being able to call the Chase reconsideration line and convince them to disregard these accounts.  But the results are mixed.

If you can, it might be helpful to have the authorized user account closed AND removed from your credit report.  Team member Jason had success calling Chase to have an authorized user account completely removed from his credit report (not just closed).

He did this so that he wouldn’t have to call and convince Chase to disregard the authorized user account later.  But not all banks make this process as easy as Chase does.

Remember, just because you close the authorized user card that does not mean the account is removed from your credit report!  That will take an extra step.

You might be able to contact the bank and have them remove the account from your personal credit reports.  Or you’ll have to contact each credit reporting agency individually to have them remove your authorized user accounts once they are closed.  Changes to your credit report can take a month or more to appear.

Develop a Relationship With Chase

Some folks have been able to get around the Chase “5/24” rule by being targeted for pre-approved offers in-branch.  But there’s no way to know for sure if you’re targeted.

Another way you can potentially bypass the “5/24” rule is by becoming a Chase Private Client.  In order to qualify, you’ll need to have a large amount of money invested with Chase.  But this includes retirement accounts, so it might be more realistic than it first seems.

If All Else Fails, Be Patient

Waiting to fall under the “5/24” rule does NOT mean that you have to put Big Travel with Small Money on hold!

You could only apply for business cards from certain banks which do NOT appear on your personal credit report.  Because these business card accounts won’t count toward your “5/24” limit.

Once you’re back under the “5/24” limit, you could then apply for Chase business cards.  And you still won’t be over “5/24,” because Chase business card accounts do NOT appear on your personal credit report!  So you’ll still be able to apply for Chase personal cards!

Also, you can always earn bonuses for referring friends and family to some your favorite credit cards.  Because you won’t have to worry about a credit pull!

Bottom Line

When you apply for business credit cards, the banks will look at your personal credit report.  This is true even if your business has an EIN.

So if you’re over the Chase “5/24” limit, you’ll have to get creative to work around it.  If you’re an authorized user on someone else’s account, you might have luck getting those accounts removed from your credit report.  Or if it makes sense for your situation, becoming a Chase Private Client can help your approval chances.

One of the better strategies is to only apply for small business cards from certain banks which do NOT appear on your personal credit report.  So they won’t add to your “5/24” count.  Once you fall under the “5/24” rule you’ll be able to apply for Chase business cards, which also won’t count toward your limit.  So you’ll still be free to get Chase personal cards later on!