In my recent posts I’ve advocated applying for a number of business cards before filling up your Chase 5/24 “slots.” My reasoning was simple: we know that the vast majority of issuers (including Chase) don’t report business cards to credit bureaus, so Chase can’t see how many business cards you’ve actually gotten in the last 24 months. Considering that some business cards offer spectacular welcome bonuses and benefits, you can squeeze a lot of them in before filling up your five slots. Or even after – as long as you get Chase business cards first, it doesn’t really matter.
The latest firm denial from Bank of America got me puzzled
Over the years I have applied for tons of personal and business cards from BoA including multiple Alaska cards. It was never an issue. And I didn’t expect it to become an issue this time, since all banks issuing small business cards always pull your personal credit. That’s been the case for – I don’t know – decades, probably.
So being 3/24 for the last 24 months, I really didn’t expect any resistance when I applied for the BoA Alaska business card. Of course, I had been approved for four business cards in the last several months, but the issuer isn’t supposed to see those, right? Which is why I was a bit surprised to see this at the end of my application process (here is my previous post, again).
Bank of America Business Credit Cards – Denial for the Alaska card
I mean, I almost always get the “we’ll let you know” language, but the denial? Why? What did I do? 🙂
It looks like there are new rules for Bank of America business credit cards
In my bewilderment I went to the best place to find answers to many life problems: churning.reddit.com. And sure enough, I’ve quickly discovered I’m not the only one.
Family_Shoe_Business 3d edited 23h
I was same boat as you and have been denied twice. In both cases, after a lot of recon, I got the same answer: too many business cards open. They read off the long list of biz cards I have, which means they pulled my business credit report, unlike most banks. If you have lots of biz cards that might be why.
Here is my exchange with FSB.
So there you have it. It doesn’t matter how much you think you know. Things are fluid in this hobby, and you need to know when the rules change, preferably before you make your move. I have no idea if this situation could’ve been avoided if I’d had any banking relationship with BoA. Until we know more, I recommend you apply for your business cards in the following order: BoA –> Chase –> Others.
To recap
It appears that BoA has started pulling business credit reports when you apply for the issuer’s business cards. That means you might want to apply for Bank of America business credit cards first to increase your chances. They still don’t report your business cards to normal credit bureaus, so your 5/24 status with Chase is safe. At least for now.
What is a business credit report? Does this apply if you are a sole proprietor and use your SSN?
You need EIN to establish business credit. In other words, as a sole proprietor using SSN, they can’t pull a business credit report if you don’t apply (and receive) EIN.
I’m also convinced that having a bank account is a big deal for getting approved for Bank of America business or personal. They started rejecting me a few years ago and lack of account relationship was mentioned in the denial letters. Since opening a checking account I’ve been approved for multiple cards in the past three years or so.
Thanks! The denial letter they sent me was just a canned garbage inviting me to buy a CD and apply for a secure card with them. Right! I might go ahead and open an account with them regardless.
Actually, that is not garbage. I called and now I am in the process of waiting for them to send me a link for CD. I add money for a year, they approve the card. Alaska Business 60k offer. Apparently, they want you to have an account with the bank.
That’s interesting! Have you received other business cards recently?
No, I have not. My last business card opening was over a year ago (Hilton Business) I just received the email from BOA rep, register an account on their instralikn site and will call them and deposit 2k for a year in a CD. The Alaska Business card is 3k spend in 3 months. I have an 847 Credit score and think it’s a secured credit card is a joke but for the 60k points “When in Rome”….
Thanks for the info John. I’m afraid my issue wmight be a large number of business cards open within a few months. I also can’t get a straight answer from them that they would honor the Welcome bonus. Will try to HUCA again.