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

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

Million Mile SecretsHow Does the Chase “5/24” Rule Affect Businesses With Separate EINs?Million Mile Secrets Team

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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?

How Does The Chase 524 Rule Affect Businesses With Separate EINs
The Chase “5/24” Rule Is Confusing Enough for Personal Cards. So How Does It Impact Your Business Card Application?

Million Mile Secret Agent G. Fong Asked:

I personally am over the Chase “5/24” rule and understand I will not be approved for a Chase Ink Business Preferred℠ Credit Card issued in my name using my social security number.  However if I apply for a Chase Ink Business Preferred card in the name of my LLC, (which has an EIN) will it fall outside the “5/24” rule?

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

Thanks for the question, G. Fong!

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.

How Does The Chase 524 Rule Affect Businesses With Separate EINs
There Is More Than One Way to Dodge the Chase “5/24” Rule!

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!

Thanks for the question, G. Fong!

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My wife is back under 5/24 this month. 2 cards are over 24 months so she is 3/24. She applied for Chase Business Ink Preferred and it went pending. If it gets approved Chase would still see her as 3/24 and she could try for 2 more cards. I can see Chase computer only looking at the personal credit report. But if it goes to reconsideration I can't believe we can depend on a live CSR disregarding the list of open Chase Business cards .

Million Mile Secrets

That's a good point Larry. Folks definitely have different experiences with the phone representatives.

Also, just because your wife is at 3/24 that isn't a guarantee she will be approved for 2 more cards, especially if you apply for them in a short time window.

Thanks for the post. I have one Chase AU from my wife's. What number should I call to remove from my report? The phone number on the back of card? Or I just SM to the bank?

Million Mile Secrets

You could secure message Chase, from the primary cardholders account, to get the authorized user account closed. Then you could call in and let them know you want to remove an authorized user account from your credit report. The phone representative should be able to get you to the correct department.

" becoming a Chase Private Client can help your approval chances" Not true in my experience...the CPC advisor has nothing to do with credit card was a waste of time transferring all my investments to Chase. Never got the Chase Sapphire Reserve due to being a CPC.

Million Mile Secrets

That's a bummer. Becoming a Chase Private Client definitely isn't a guarantee you'll be approved. Thanks for sharing that.

DP on Chase business cards and 5/24: On 2/20 and 2/21/18, I called recon re: denial of a SW business card. I was 6/24 if AU(2) and chase business (1) cards were counted but 3/24 if they were not. I got nowhere with the first CSR. HUCA. The second CSR approved my application after verifying that I had been removed as an AU from 2 Amex cards. When asked, both CSRs stated they were counting the Marriott business card as part of “too many accounts,” (they didn’t actually acknowledge the 5/24 rule). By the end of my conversation with the second, it was unclear if the Marriott business card was counted since removal of the 2 AU accounts would put me at 4/24. I argued MB should not count for all the usual reasons and b/c the was not on my credit report which was the stated reason for the denial. Based on this experience I cannot say definitively that Chase business cards count only that YMMV.

Million Mile Secrets

This is good to know, thanks for sharing!

If I am way over the 5/24 but I am preapproved for a card according to the in bank system, will I be approved?

Million Mile Secrets

That has been some folk's experience. There just isn't a good way to know if you are pre-approved.