A Look at Chase’s Recent Tightening on Credit Card Policies [2020.9 Update: Business Card Applications Have Eased Somewhat]

[2020.9 Update] Chase has recently opened up third-party affiliate links for business cards, meaning Chase will pay third parties if you apply through them. In addition, business card applications have become somewhat easier to get approved for, and logging into a Chase account before applying is no longer required. Overall, these signs suggest that Chase has loosened risk controls in this area quite a bit and has the budget to keep acquiring new customers.

Chase Freedom Referral Links Removed

Previously, we could generate Chase Freedom application links through Chase Freedom or Freedom Unlimited. But starting last week, it has no longer been possible to generate Chase Freedom referral application links. Existing links now automatically redirect to the Freedom Unlimited application page.

At the same time, all Chase Freedom affiliate links, meaning referral links provided to third-party platforms, have also been removed.

In fact, Chase Freedom had previously been removed from the official website, and many people speculated that it might be discontinued in favor of Freedom Unlimited. Fortunately, Chase Freedom later came back. This is actually not hard to understand: Chase Freedom is relatively less valuable to Chase. Most people hold Freedom for the 5x bonus categories, and from Chase’s perspective that is not really a profitable deal, since swipe fees may not even cover the 5x rewards. During the pandemic, there was no need for Chase to spend extra money to grow the Freedom user base by paying people through referral links or affiliate platforms.

Of course, if you want the official application link for this card, it is still available.

Chase Slate Temporarily Removed

The Chase Slate credit card at one point offered up to 15 months of 0 APR right after account opening, making it a great card for times when cash is tight. Here are the key features of this card at opening, which almost makes it feel tailor-made for the pandemic:

• Within 60 days after opening, Balance Transfers had no fee, and Balance Transfers had 15 months at 0 interest
• Purchases after opening also had a 15-month 0 interest period

My guess is that during the COVID-19 pandemic, too many people were applying for this card or using its 0 APR feature for cash-flow management, and Chase got hit hard enough that all application pages across channels now automatically redirect to Freedom. It is probably only temporarily unavailable. This also shows that Chase is still being very cautious.

If you are interested in 0 APR credit cards or Balance Transfers, see the article below:

• Practical Uses of 0% APR Purchase and Balance Transfer Offers

Chase Tightens Business Credit Card Applications

Chase quietly added more restrictions to business credit card applications. Now, applying for a business credit card requires logging in. It is possible that Chase is no longer allowing non-Chase customers to apply for business credit cards. In this context, that is understandable. Many small business owners may not have the money to pay their bills, and could open a Chase business card, spend on it, and then not pay it back. This move reduces quite a bit of risk for Chase, because if you are already a Chase customer, they can use your repayment history to determine whether you may have debt issues.

Fortunately, business card links generated through referrals are temporarily not subject to the new rule, so applications can still be submitted without logging in.

In addition, according to DOC, Chase business card applications can no longer list income as 0, and now require you to provide the business start date, which was not required before. Judging from applicant feedback, approval odds also appear to have dropped quite a bit. Some people were denied for the reason of insufficient balance in deposit and investment accounts with us.

In addition, the Southwest Primer Business card has disappeared from the official website, though it can still be applied for through a direct link.

My Take

During the pandemic, besides airlines scrambling to avoid bankruptcy and small business owners scrambling for cash, banks have also been making changes to their credit card policies. One change that benefits us is the extension of the spending window for welcome bonuses: AMEX, Chase, and BofA all extended it by three months. But this set of moves from Chase is mainly about lowering the cost of credit card marketing and cutting back on some lower-margin products. At the same time, Chase has imposed some additional limits on business card approvals. After all, small business owners have been hit especially hard during the pandemic, and they are the core user base for business cards.

The good news, however, is that the all-time-high offers on Chase UA and IHG cards have not disappeared yet. Perhaps the value of those points is lower during the pandemic, so Chase has not felt the need to cut welcome offers to reduce costs.