Chase has been in the news recently because of how they are tightening up their lending practices. Because of the coronavirus, they have restricted new mortgages to people with a 700+ credit score, and also require a 20% down payment. While these are pretty crazy measures, it doesn’t seem like their crunch ends at mortgages, it looks like they are also making some changes to their credit products as well.
Chase is making some changes to people applying for all of their new business credit cards. Previously, Chase would allow you to report an yearly business income of $0, and would request how many years in business a company is. They are now changing that to require more than $0, and are asking for an established date.
At the end of the day, these changes are making it harder for people to get approved for business applications. From Chase’s point of view, this only makes sense, as it’s pretty easy to get approved for a high credit limit without much documentation. That being said, there are a data points that I’ve seen of people getting denied with a long established business.
It’s no surprise that they are tightening up their lending practices, the question that we really have to ask ourselves is how long will these measures last, and how the other banks will follow.
Have you applied for a Chase Business account recently? How did your application go? Let us know in the comment section below.