Daniel B asked the following question in the Ask Lucky forum:
For at least a month now I have been trying to figure out in what order to apply for some credit cards. I definitely want to get the Ink Business Preferred card with the 80k bonus. I understand that I can get it even if I am above the 5/24.
I am at 4/24 now. I was thinking of getting the Chase Sapphire Preferred (50k bonus) FIRST (which will put me to 5/24), then within a few days apply for the Ink Business, because that latter card I should be approved for even if I am at 5/24.
Please let me know whether I am correct with these assumptions?
Since there’s a (mostly) right and wrong answer here, and since this is something that confuses many people, I think it’s worth addressing specifically. Most of the confusion here stems from the 5/24 rule:
- You typically won’t be approved for the Chase Sapphire Reserve® and/or Ink Business Preferred® Credit Card if you’ve exceeded the 5/24 limit (meaning that five or more new card accounts show on your credit report in the past 24 months)
- Applying for the Chase Sapphire Reserve® will show as a new credit card on your personal credit report, while typically applying for small business credit cards like the Ink Business Preferred® Credit Card (or an Amex small business credit card) won’t show as a new credit card on your personal credit report
Daniel currently has four new cards showing on his personal credit report for the past 24 months. If he applied for the Sapphire Reserve now, he’d have five cards showing on his personal credit report, and wouldn’t be eligible for any more cards that are subjected to the 5/24 rule. However, if he applied for the Ink Business Preferred, that card would be unlikely to show on his personal credit report, meaning that he could still then apply for the Sapphire Reserve.
So Daniel, you should apply for the Ink Business Preferred® Credit Card first, which offers up to 3x points in popular categories, and has great purchase protection, travel protection, and even an unrivaled cell phone protection plan.
I’ll take it a step further. I might even consider then applying for the Ink Business Cash® Credit Card. That card has no annual fee and offers up to 5x points in some categories. The two cards complement one another nicely, and since it’s also a business card, it generally shouldn’t show on your personal credit report as a new card.
Since neither of those cards is likely to show up on your personal credit report, you should then still be eligible to be approved for the Chase Sapphire Reserve® (though you’d have to wait for a bit, since you can typically be approved for at most two Chase cards in a 30 day period).
The one caveat I’d add here is that there is a chance you’d be denied for the Chase Sapphire Reserve on account of too many recent inquiries. I don’t think it’s likely, but it’s certainly possible. After all, there’s more that Chase looks at when approving the card than just whether you have five or more new card accounts showing on your personal credit report.