Chase Could Give Rejected Co-Branded Card Applicants a Second Look
JPMorgan Chase is reportedly exploring a new way to approve some applicants who are denied for its co-branded credit cards.
According to The Wall Street Journal, Chase has discussed a “second-look” process that could let outside lenders review rejected applications and potentially approve the account while taking on the credit risk themselves.
The idea could help Chase and its co-brand partners approve more applicants without Chase having to loosen its own underwriting standards. WSJ notes that card approval rates have been a point of tension in some co-brand relationships, including United Airlines.
Chase has reportedly spoken with private-credit firms including Blue Owl, Blackstone, KKR and Sixth Street about the concept.
There are still plenty of unanswered questions, including how this would impact Chase’s eligibility terms and how the process would work when another lender is involved. Chase says there is no current plan to launch the program, so for now this is something to watch rather than an imminent change to existing application rules.
