Originally Posted by
slm9555
I started a law firm with my wife last November. I have been running all our business expenses on my various personal cards to maximize spend. However, this was creating too much of a headache to keep my business organized so it was only logical to get a dedicated business card.
The last card card I got was over a year ago. I think I am 3/24. Low 800s credit score. 100% legitimate business, LLP entity. Got an auto denial for the ink cash. Called business recon. They had a bunch of questions about my business. I gave them conservative numbers that was 200k gross projected and 150k net. These are conservative numbers based on when the business started to date. My gross is going to be closer to 240-260k most likely.
Anyway, the agent basically explained that I have too much existing credit relative to my income. I offered to close my southwest card if needed. I don’t put any real spend on it and the CL is only 5k. They said due to my credit vs income my application would require approval by two individuals and that it would be 1-3 business days for the second review. It’s been 4 business days and no update and the card does not appear in my account.
Its a little frustrating that that I cannot get a business credit card with a business that’s my full time job, good credit, and under 5/24. Any advice or opinions? Now that I closed my southwest card any harm in applying again?
My current cards for reference: csr, fu, freedom, Amazon, Hyatt, Southwest (now closed voluntarily), amex platinum, amex gold (authorized user), British airways (authorized user).
The one thing you left out is how large a CL you have with Chase. Several years ago I got a pending notice on a Chase personal app. When I called Recon, the CSR said "I'm going to recommend approval, but your app has to be reviewed by a senior credit analyst because of all the credit you already have with us". I took the hint, and lowered my total Chase CL from $60K to $20K. I haven't had an app need to go thru secondary review since then.
It used to be recommended that you keep excess CL with Chase to move to new apps. I haven't heard about anyone needing to do that for quite a while. At this point in time I'd say it's prudent to keep your TCCL low to get auto approvals, or at least easy Recon calls, rather than having excess CL to move to new cards. IMHO
I do realize it may be a bit of a problem for you, since you probably need a large CL to cover your business expenses. But you can look at your other Chase cards, and see how much you can reduce the CL on ones you don't use that much. Not that you need to close more cards that are useful to you, but if you rarely put more than $500 a billing period on a Freedom card, etc, lower that card's CL from $5K to $2K.