New Chase Credit Card Approvals Could Depend-2021

Chase is adding a brand new clause to the Terms and Conditions of their credit card applications, which provides Chase the power to examine any bank account or other financial accounts that it could have access to when making a decision about the credit card you apply forincluding data from banks that are not yours:New Chase Credit Card Approvals Could Depend

“We may obtain and use information about your accounts with us and others such as Checking, Deposit, Investment, and Utility accounts from credit bureaus and other entities.”

New Chase Credit Card Approvals Could Depend-2021

Back in May of this year, the Wall Street Journal reported that an agency of the U.S. government had encouraged the largest banks to work harder at approving new-to-credit consumers for their first credit cards. Chase as well as a number of other banks (including Wells Fargo and US Bank) had agreed to participate in a pilot program that would see these banks share information with each other about their customers’ bank accounts, with the idea that this would provide a starting place to assess the credit risk of applicants who had little to no information on file with the major credit bureaus.

Chase was the first to lead this development in the last week when it launched this card, the Chase Slate Edge Visa, which is a credit card that does not have an annual fee and has minimal features, but it could be an easier route to approval for those who have no credit history (and perhaps people who have lower ratings than Chase typically accepts). In the Terms and Conditions of this card’s application, there was a clause mentioned above, which permits Chase to examine accounts at the bank, investment and utility accounts in the course of its approval process.

But, this new phrase that gives Chase more freedom to look into an array of financial accounts isn’t limited only to Chase Slate Edge credit card. It is now part of the terms & conditions of every online Chase application for credit cards without the option to “opt out.” If you wish for Chase to review an application for consideration, you have to accept that they can investigate financial sources that are not included in your credit report.

Should You Be Worried?

The main reason why Chase will scrutinize your credit history is in the event that there isn’t sufficient credit history from the past to decide on the application for a credit card. For people who are new on credit, or people with a history, however with lower scores that Chase typically accepts and may be able to accept Chase opening other accounts to show their financial accountability. People with higher scores may think this is an invasion of their privacy, a way for banks to spy on them, whether for good or for less.

While it’s unlikely Chase will use the “second layer” of bank account details on people who have higher ratings, the fact is that Chase is imposing this agreement to any new applicants.

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