We now have three excellent Chase Ink Cards that are part of Chase’s business card portfolio. These include the:
- Ink Business Preferred℠ Credit Card, which has a $95 annual fee and offers 80,000 Ultimate Rewards points after spending $5,000 within three months; the card offers 3x points in select categories
- Ink Business Cash℠ Credit Card, which has no annual fee and offers 50,000 points after spending $3,000 within three months; the card offers 5x points in select categories
- Ink Business UnlimitedSM Credit Card, which has no annual fee and offers 50,000 points after spending $3,000 within three months; the card offers 1.5x points on all purchases
All three of these cards are excellent, and I view them as complements rather than substitutes. Cardmembers can potentially get all three of these cards, for a total of 180,000 bonus points, not to mention a great portfolio of cards to use long term to maximize their small business spend.
On a recent post about deciding on my current credit card strategy, reader Old Flyer asked the following:
I am missing something from your statement that “… while the two business cards are subjected to the 5/24 restriction, applying for them doesn’t actually qualify as a further inquiry towards that limit.” I always thought Chase counted Business Cards issued by Chase (not AMX Business or Citi Business) for the 5/24 restriction. Have I been wrong all these years? Please further explain.
I’ve written a lot about the 5/24 rule, which is a Chase policy where they often won’t approve people for cards if they’ve opened five or more new card accounts in the past 24 months. While I try to simplify this as much as possible, this seems to be the greatest point of confusion from readers regarding applying for credit cards. That’s hardly surprising, because the policy sure isn’t simple.
The basics of 5/24
The idea is that you won’t be approved for many Chase cards if you’ve opened five or more new card accounts in the past 24 months:
- A majority of new credit card accounts will count towards that limit, meaning that opening five or more cards in 24 months will make you ineligible for certain Chase cards
- One exception is most business cards, including those issued by American Express, Barclays, Chase, and Citi, generally won’t count as an additional card towards that limit, because they won’t be shown on your personal credit report
- The 5/24 rule doesn’t apply to all Chase cards, meaning that there are some Chase cards you can still be approved for if you’ve opened five or more card accounts in the past 24 months; this includes cards like The Hyatt Credit Card, IHG® Rewards Club Premier Credit Card, and British Airways Visa Signature® Card
Chase Ink Business Cards & 5/24
Yes, Chase Ink Cards are subjected to 5/24, meaning that you can’t be approved for them if five or more new card accounts show on your personal credit report in the past 24 months.
However, when you do apply for a Chase business card, it won’t count as an additional card towards that limit. Let me explain in the form of an example. Let’s say you’re at 4/24 (four cards show on your personal credit report in the past 24 months), meaning that if you apply for one more card you’d be at the 5/24 limit:
- If you applied for the Chase Sapphire Reserve® first you’d be at 5/24, meaning you wouldn’t be eligible for the Ink Business Preferred℠ Credit Card anymore, because you’d be at the 5/24 limit
- If you applied for the Ink Business Preferred℠ Credit Card first you’d still only be at 4/24, because that business card wouldn’t show on your personal credit report, so you could then still get the Chase Sapphire Reserve® (which would put you at 5/24)
I know this is complicated, but hopefully this helps clear things up. Yes, Chase Ink Business Cards are subjected to 5/24, meaning you can’t be approved if more than five new cards show on your personal credit in the past 24 months. However, actually applying for a Chase Ink Business Card typically won’t show on your personal credit report, and therefore wouldn’t count as a further card towards that limit.
In other words, always apply for business cards before personal cards if you’re trying to stay under that limit.
Does that make sense, or does anyone have more questions about this?