Want to get a new credit card, but want a Chase business credit card and are unsure how to apply for a Chase business credit card.
Business credit cards work similarly to personal credit cards, and Chase has some of the best business credit cards on the market through its Chase Ink division, especially if you’re looking for rewards. However, there are some key differences in qualification and application. Here we’ll go over the ins and outs of the best Chase credit cards, how to qualify for a business credit card, and then we’ll go over how to apply for a Chase business credit card.
What you need to know about Chase business credit cards and the 5/24 rule
In order to apply for a Chase business credit card, you must understand the Chase 5/24 rule. This rule says that if you have opened five or more credit cards in the past 24 months, you cannot be approved for a Chase credit card. Even the business credit cards are subject to this rule. So if you’ve opened more than four accounts in the past two years, you’ll have to wait before you can apply.
The good news is that while Chase’s business credit cards are subject to the 5/24 rule, they don’t complement it. That is, if you apply for a Chase business credit card, it won’t count towards your 5/24 limit. This is because Chase reports business credit cards to commercial rather than consumer credit bureaus – in other words, they won’t show up on your personal credit report.
Can someone apply for a Chase Business credit card?
If you’re looking to apply for a Chase business credit card, the requirements are a lot less stringent than you think. You must have a legitimate business, but there is a good chance you are already part of a profitable activity that could be considered a business. This is the case with most credit card companies. Everything from hobbies to sideline jobs can qualify, like these usual gigs.
- Drive for Uber or Lyft
- Selling things on Etsy
- Reselling items on eBay
- Selling things at craft fairs, farmers markets or flea markets
- Airbnb rental
- Doing nails or hair from home
- Turn used furniture over
- Babysitting and tutoring
In fact, you don’t have to have started your profit making business to apply for a Chase business credit card, as long as you really intend to get started soon. If you can get a business credit card now, you can plan ahead. Remember never to lie on a credit card application. You may be asked to review the information you provided.
Why should you apply for a Chase Business Credit Card?
Business credit cards are a great way to separate your finances, whether you’re running a full-fledged business with employees or just selling things on eBay as a sideline. You can also do this with a business account and debit card. However, using a business credit card can help you build business credit and avoid monthly maintenance fees. The fact that business credit cards aren’t listed on your personal credit score is a plus, and building your business credit will come in handy if you ever want to get a small business loan or get business insurance. That in itself is one reason to apply for a Chase business credit card.
In addition, Chase business credit cards are particularly desirable as reward credit cards when compared to other credit card companies. First of all, a Chase business card has business-related bonus spend categories that provide additional rewards. If your company or side business means you spend a lot of money on expenses like transportation, dining out with customers, internet and phone bills, or printing and advertising services, you can apply for a Chase business credit card and earn rewards much faster. Compared to Chase’s personal credit cards, the business credit cards also offer some of the highest quality sign-up bonuses for the same or no annual fee.
How to Apply for a Chase Business Credit Card
Uses for a chase business card are pretty simple, but there are some areas where people get confused. Here is a step-by-step guide on how to apply for a Chase business credit card.
When you apply for a Chase business credit card, the first page asks for basic information about your company, such as: B. Name, postal address and annual sales. If you are a freelancer or someone with a sideline without employees, you are considered a sole proprietorship. This is listed under “Type of Business”. You would also put “1” under the Number of Employees field, which is what you would be.
You can use your own name as the company name and your personal mailing address. You need to estimate your annual business sales here, and this can be a forecast sales for the year ahead. So appreciate on the high side. Don’t worry if you don’t make a lot of money. The bank will also take your personal income into account.
Under “Tax Identification Number” you can enter your EIN (Employer Identification Number) if you have one, or you can simply use your own social security number.
On the following page you will be asked for your personal information, similar to a normal credit card application. As a sole proprietorship, you identify yourself as the “owner” in the “Authorizing Officer” field. You must provide your name, home address and gross annual income. Your gross annual income may include income from your job, your company, and your spouse.
On the following page you will be asked for your telephone number (business and personal can be the same), your email address, your date of birth, your social security number and the maiden name of the mother.
Finally, on the last page where you apply for a Chase business credit card, you can add employee cards. You don’t have to do this, but if you have someone who can be trusted and will occasionally buy things for your business, employee cards are a great way to meet your minimum spending limit on the sign up bonus. However, make sure you trust the cardholders as you will be hooked for all of the fees they charge.
waiting for confirmation
Once you’ve submitted the final page, you’ll get a page either letting you know you’ve been approved, rejected, or your application is being processed. The last option is the most likely. If so, you will likely get a decision within a week, even though the stated waiting time is 30 days. You may be contacted during this time and asked for more information about your company. You can also call Chase’s automatic status line at 1-800-432-3117 at any time to check the progress of your application.
How to get approval for a Chase business credit card
There’s no way to guarantee approval when applying for a Chase business credit card, but there are some steps you can take to improve your chances. Here are some tips.
Boost Your Credit: Your credit score should be at least 680 when applying for a Chase business credit card. However, if you have a score of 720 or higher, you have the best chance.
Reduce Your Credit Limit with Chase: Chase does not like to give too much credit to a customer for their income, and it is very often turned down because you already have large credit limits. In general, your total credit limit with Chase for all of your personal and business credit cards should not exceed 50% of your income or $ 75,000. If you’re nearing one of these limits, request a credit limit reduction on any of your existing Chase credit cards before applying for a Chase business card.
Place your credit card applications: Chase doesn’t want to see many recent requests. Other than not going past 5/24, if you’ve opened a Chase credit card in the last 30 days, you won’t be approved either. If you’ve opened four or five Chase credit cards in the past six months, it is best to wait a while before applying for a Chase business credit card.
In-branch application: Individuals who apply for a Chase business credit card in-store rather than online tend to have a better chance of getting approval and also tend to receive larger sign-up offers. If you have a branch in your area, it is worth applying in person.
Wait Until You’re In Business: While you don’t have to have a 10 year business generating six-digit numbers to get approved for a Chase business credit card, declining is common among people who have been in business for a short time and have low income. Individuals who have been in business for at least two years and who have $ 2,000 or more in revenue have a better chance of getting approved.
What to do if you are denied a Chase business credit card?
If you get declined when applying for a Chase business credit card, there’s still hope. You can call the verification number at 1-888-270-2127 to speak to someone about your application. Often times Chase just needs a little more information about your business or wants to review something in order to get you approved. Below are some common questions a representative might ask you.
- What kind of business are you doing?
- How many years has your company been in operation?
- Why would you want a business credit card?
- What kind of expenses will you put on this credit card?
- How much sales did your company generate in the last year?
- How do you market your business?
In answering these questions, you may find that Chase reverses its decision and approves you for a new Chase business credit card. It may still deny you too, but you will be given a reason so that you can improve your chances of getting approval next time.
Best Chase Business Credit Cards: Chase Ink Business Preferred℠ versus Chase Ink Business Cash℠
Both Chase Ink business cards are great for business credit cards that offer high quality rewards. The Chase Ink Business Preferred® credit card is geared more towards travel rewards, while the Chase Ink Business Cash® is geared towards cashback. It’s also worth noting that the Chase Ink Business Preferred® credit card has an annual fee of $ 95, while the Chase Ink Business Cash® has no annual fee and a generous sign-up bonus.
That being said, the Chase Ink Business Preferred® has the highest sign-up bonus of any Chase card: 100,000 Ultimate Rewards® points (100,000 if you apply to a branch) after spending $ 15,000 in the first three months. When you book through Chase’s Ultimate Rewards® portal, that travel expense is worth $ 1,250. You can easily get more value out of it by transferring your Ultimate Rewards® points to other airlines or hotels on the Chase network.
Regardless of which card you apply for, you will be waiting for great rewards and will be able to split your personal and business expenses with ease. Even if you can’t qualify just yet, it is good to know what you can do to increase your future chances.