Reader’s Chase Small Business Card Approval Experience With 5/24 Rule

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Emily and I love to share secrets to help folks get Big Travel With Small Money.  So we’re very grateful when readers send us tips about their successes.

Million Mile Secrets reader Gerry sent us his experience applying for the Marriott Rewards Premier small business card.  Even with the stricter Chase card approval rules, he was approved, despite having more than 20 new credit cards in the past 24 months.

This is great news!  Because Chase has some of the best points and miles cards.  So finding an exception to the Chase approval rules might help other folks with card applications in the future!

I’ll share Gerry’s experience!

Stricter Chase Approval Rules

I’ve written how Chase’s approval rules apply to small business cards and to co-branded airline and hotel cards, like the Chase United MileagePlus® Explorer Card and Southwest Rapid Rewards® Plus Credit Card cards.

Known as the “5/24 rule,” folks that have opened ~5 or more credit cards (from any bank) in the past 24 months (excluding certain business cards), are unlikely to get approved for most Chase cards.  Even folks with 800+ credit scores have been denied.

Chase hasn’t released any official details on the “rule”.  So we can only share our personal experience and what we hear from readers.

For example, Doctor of Credit reports the 5/24 rule does NOT apply to these cards:

• Chase Ritz-Carlton
• Chase IHG Rewards Club Select Credit Card
• Chase Hyatt
• Chase British Airways Visa Signature Card
• Chase Disney
• Chase Fairmont
• Chase Amazon
• Chase AARP

In Gerry’s case, he knew his odds of getting a new Chase card were slim, because he had more than 20 new cards in the last 24 months.  But going through the process of applying could get him insight to Chase’s approval methodology for future applications.

So he applied for the Marriott Rewards Premier small business card and was initially denied.  But persistence pays off!

Reconsideration Options & Exceptions to the “5/24 Rule”

Link:   5 Ways to Make Your Reconsideration Call a Success

As he’s had to do in the past, Gerry chatted with a credit analyst.  As expected, the credit analyst reviewed his credit report and would not approve the application based on too many new credit cards in the last 2 years.

In the past, folks have been able to get approvals through the reconsideration line by adjusting credit limits from existing Chase cards.  But this no longer seems to work for most people.

Instead of losing hope, Gerry visited his local Chase branch.

Special Consideration When You Have a Chase Banking Relationship

Bankers at Chase branch locations are able to submit a special consideration request for folks whose credit card applications are denied.

You’ll usually need to have $10,000+ in deposits at Chase.  And the funds will need to have been at the bank for a period of time.

You can’t just open a new bank account after a card application is denied and get special consideration right away.

Gerry met the conditions for special consideration.  So his banker submitted the request.

Conference Call With an Analyst

The next step was a 3-way call between Gerry, his Chase banker, and a credit analyst in Chase’s lending services group.  The call took over an hour and the analyst asked very detailed questions about Gerry’s business.

Remember, you don’t need a million dollar business to qualify for a small business card.  But you do want to show Chase you’re for-profit in your venture.

In the end, Gerry was approved for the Marriott Rewards Premier small business card.

4 Tips for Getting Chase Cards With 5/24 Rule

While there’s no sure and fast way to guarantee approval for Chase cards, there are ways to increase your chances.

1.   Get Chase Cards With Big Travel Perks First

If you’re new to our hobby, Chase has some of the best points and miles cards.  Especially cards which earn Chase Ultimate Rewards points, because they offer flexibility.

I recommend getting cards like the Sapphire Preferred or Ink Plus first.  Because they are some of the most valuable cards for Big Travel.

2.   AMEX Small Business Cards Do NOT Count Toward Chase 5/24 Rule

Most banks do not report business cards on your personal credit report if you pay on time.  So, applying for a small business card at AMEX will NOT hurt your chances at getting a card at Chase.

Plus certain AMEX small business cards earn Membership Rewards points that transfer to many airline and hotel partners.  Other AMEX cards earn cash back or Starwood points.  These are some AMEX small business cards to consider:

• SimplyCash Plus Business Credit Card
• Starwood Preferred Guest® Business Credit Card from American Express
• The Business Gold Rewards Card from American Express
• The Business Platinum® Card from American Express

3.   Keep Track of Card Open Dates

If you haven’t kept records of your past credit card applications, read my post on how to find credit card open and close dates.

This way, you can monitor when you’ve had less than 5 cards in a ~24 month period before applying for a new Chase card.

Again, there’s no guarantee Chase will automatically approve your application.  But it will help your case if you have to call the reconsideration line.

4.   Open a Bank Account at Chase

If you live near a Chase branch, you might want to consider establishing a banking relationship.  This made the difference for Gerry in getting his card application approved.

Keep in mind certain bank accounts have fees.  So you don’t want to open an account unless you think you’ll benefit.

Bottom Line

It’s still possible to get approved for Chase cards if you’ve had more than 5 credit cards (from any bank) in the past 24 months.

Folks with bank accounts at Chase can visit the branch to have a banker submit a special consideration to the credit card department.

If you don’t want to hurt your chances of getting approved for certain Chase cards, you could apply for AMEX small business cards, which do not appear on your credit report.

Do you have experience getting Chase to reconsider your credit card application?  I’d like to hear about it!