Southwest Airlines Credit Card Strategy
Dec 29, 2023, 9:44 am
#1
Original Poster
Join Date: Oct 2022
Posts: 4
Southwest Airlines Credit Card Strategy
I hate the idea of participating in churning credit cards to maximize rewards, yet this might be a great time to take advantage of a deal.
My wife and I are planning (2) trips on Southwest flights in 2024. Total flight costs are estimated around $2,500.
I do not have a Southwest credit card, but my wife does. If I sign up for the Southwest Rapid Rewards credit card, I earn 50,000 bonus points if I spend $1,000 in the first 3 months. My wife would receive 20,000 points for referring me - in total we would earn 70,000 points. Based on NerdWallet's website, each point is worth about $0.015 so I'm calculating total points worth $1,050.
There is a $69 annual fee associated with the card.
After I receive the points, and pay the annual fee, I would discontinue / close the credit card.
Does anyone see any glaring issues with my plan? Is there a better strategy out there?
Thank you!
My wife and I are planning (2) trips on Southwest flights in 2024. Total flight costs are estimated around $2,500.
I do not have a Southwest credit card, but my wife does. If I sign up for the Southwest Rapid Rewards credit card, I earn 50,000 bonus points if I spend $1,000 in the first 3 months. My wife would receive 20,000 points for referring me - in total we would earn 70,000 points. Based on NerdWallet's website, each point is worth about $0.015 so I'm calculating total points worth $1,050.
There is a $69 annual fee associated with the card.
After I receive the points, and pay the annual fee, I would discontinue / close the credit card.
Does anyone see any glaring issues with my plan? Is there a better strategy out there?
Thank you!
Jan 1, 2024, 11:32 pm
#2
Join Date: Mar 2007
Location: SJC/SFO
Programs: WN A+ CP, UA 1MM/*A Gold, Mar LT Tit, IHG Plat, HH Dia
Posts: 6,285
Referring your spouse (or other relative) for the 20k bonus is a solid strategy. I did it twice last year and earned 40k bonus.
One thing to consider is that there are 3 personal Chase Southwest cards. The $69 annual fee corresponds to the lowest tier card. The middle and top tier cards charge higher fees but have benefit that may more than offset the difference for you. It depends on your travel and spending patterns. Take a look at the options before you choose.
One thing to consider is that there are 3 personal Chase Southwest cards. The $69 annual fee corresponds to the lowest tier card. The middle and top tier cards charge higher fees but have benefit that may more than offset the difference for you. It depends on your travel and spending patterns. Take a look at the options before you choose.
Jan 2, 2024, 6:03 am
#3
Join Date: Oct 2019
Programs: WN
Posts: 127
Referring your spouse (or other relative) for the 20k bonus is a solid strategy. I did it twice last year and earned 40k bonus.
One thing to consider is that there are 3 personal Chase Southwest cards. The $69 annual fee corresponds to the lowest tier card. The middle and top tier cards charge higher fees but have benefit that may more than offset the difference for you. It depends on your travel and spending patterns. Take a look at the options before you choose.
One thing to consider is that there are 3 personal Chase Southwest cards. The $69 annual fee corresponds to the lowest tier card. The middle and top tier cards charge higher fees but have benefit that may more than offset the difference for you. It depends on your travel and spending patterns. Take a look at the options before you choose.
Jan 2, 2024, 6:07 am
#4
FlyerTalk Evangelist
Join Date: Nov 2000
Location: Nashville -Past DL Plat, FO, WN-CP, various hotel programs
Programs: DL-MM, AA, SW w/companion,HiltonDiamond, Hyatt PLat, IHF Plat, Miles and Points Seeker
Posts: 11,073
Nothing really wrong with that strategy.
for what it is worth, I got two cards in November. And after $8,000 in spend we will pick up almost 200,000 points in two weeks. Because of that, we will have Companion Pass for the next two years, plus all those miles. So, all free travel.
for what it is worth, I got two cards in November. And after $8,000 in spend we will pick up almost 200,000 points in two weeks. Because of that, we will have Companion Pass for the next two years, plus all those miles. So, all free travel.
Jan 2, 2024, 1:19 pm
#5
Join Date: May 2010
Posts: 583
There is nothing wrong with your strategy per se. That said, you did just miss the increased sign-up bonus of 75K.
Historically, Chase & Southwest offer an increased sign-up bonus for Southwest credit cards right between October and early December: Discussion of Chase RR Visa 40K-75K sigunup points offers -- NO REFERRALS! - Page 301 - FlyerTalk Forums
Many of us sign-up for these increased offers during November, spend most of the way through the holiday season - but holding back from getting the bonus until Jan 1st.
When timed properly, you could get the Companion Pass for almost 2 full years.
Historically, Chase & Southwest offer an increased sign-up bonus for Southwest credit cards right between October and early December: Discussion of Chase RR Visa 40K-75K sigunup points offers -- NO REFERRALS! - Page 301 - FlyerTalk Forums
Many of us sign-up for these increased offers during November, spend most of the way through the holiday season - but holding back from getting the bonus until Jan 1st.
When timed properly, you could get the Companion Pass for almost 2 full years.
Jan 4, 2024, 1:12 pm
#6
Join Date: May 2011
Programs: AA LT Platinum, WN CP, National EE, Hertz PC, Avis PC, Hilton Diamond, Sheraton Gold
Posts: 278
Jan 4, 2024, 1:48 pm
#7
Join Date: Jan 2016
Location: Overland Park
Posts: 6
Semi related, but I just tried and was denied because of Chase's 24 month reward policy which means their personal card will not be approved until two years after the reward was issued (points). In my case I forgot that the card I applied for in late 2020 earned two rewards, 50k points after spending $1k and another 50k points after spending $15k (or some similar amount). Anyway, I loved earning these points at the time but now realize that has really messed up my attempt to earn companion pass in early 2024. I was approved for the Chase RR business card so will get $80k after spending $5k but like your idea to have my wife open a separate account so I can earn the 20k points....just need to find one more. :-)
Jan 4, 2024, 2:29 pm
#8
FlyerTalk Evangelist
Join Date: Nov 2000
Location: Nashville -Past DL Plat, FO, WN-CP, various hotel programs
Programs: DL-MM, AA, SW w/companion,HiltonDiamond, Hyatt PLat, IHF Plat, Miles and Points Seeker
Posts: 11,073
the top biz card comes with free wifi. Charge it and then get it credited back.
Jan 4, 2024, 2:30 pm
#9
FlyerTalk Evangelist
Join Date: Nov 2000
Location: Nashville -Past DL Plat, FO, WN-CP, various hotel programs
Programs: DL-MM, AA, SW w/companion,HiltonDiamond, Hyatt PLat, IHF Plat, Miles and Points Seeker
Posts: 11,073
Semi related, but I just tried and was denied because of Chase's 24 month reward policy which means their personal card will not be approved until two years after the reward was issued (points). In my case I forgot that the card I applied for in late 2020 earned two rewards, 50k points after spending $1k and another 50k points after spending $15k (or some similar amount). Anyway, I loved earning these points at the time but now realize that has really messed up my attempt to earn companion pass in early 2024. I was approved for the Chase RR business card so will get $80k after spending $5k but like your idea to have my wife open a separate account so I can earn the 20k points....just need to find one more. :-)
Or have your wife open personal and biz card, then you get CP until the end of 2025. ALTERNATE every two years
Jan 5, 2024, 5:11 pm
#10
Join Date: Jan 2016
Location: Overland Park
Posts: 6
Yes another good suggestion, but since my work ends up paying for several of my trips (conferences or work trips) it is better for me to have the companion pass so she flies free and my company pays for my ticket (win-win) but agree that would help with the new 24 month reward blackout.
After reading lots of others having issues getting the biz card I was surprised how easy that was to get approved so probably should have done that one sooner....live and learn...
After reading lots of others having issues getting the biz card I was surprised how easy that was to get approved so probably should have done that one sooner....live and learn...
Jan 10, 2024, 5:57 pm
#11
Join Date: Dec 2004
Location: LAX
Programs: WN A-List
Posts: 1,020
Same here, applied for the 75k card and was denied. They couldn’t tell me why on the phone why, since it had been over 30 days, but this has to be the reason. Is it two years since the last (signup) bonus points posting?
Mar 17, 2024, 2:46 pm
#12
Join Date: Jan 2016
Location: Overland Park
Posts: 6
I ended up getting approved for two separate Chase SW RR Biz Cards (Performance & Premier). So will just wait until December 2025 to go for the personal RR cards to get back in sync. Glad it worked, but more hassle than I thought it would be.
Mar 25, 2024, 9:41 am
#13
Join Date: May 2013
Posts: 288
Yes its 24 months from the last bonus posting. Not from when you got the card.
Mar 25, 2024, 10:56 am
#14
Join Date: Oct 2013
Posts: 182
If somebody has a Biz and Personal SW card. Both were obtained over two years ago. Can you cancel one (say the personal), how much time do you have to let pass before applying for a new card and getting a new bonus applied? Assume no issues with 5/24 policies.
Thanks
RICH
Thanks
RICH
Mar 25, 2024, 11:24 am
#15
Join Date: May 2013
Posts: 288
If somebody has a Biz and Personal SW card. Both were obtained over two years ago. Can you cancel one (say the personal), how much time do you have to let pass before applying for a new card and getting a new bonus applied? Assume no issues with 5/24 policies.
Thanks
RICH
Thanks
RICH
But to be clear you want to get a new Personal, and Biz in the same year, so you can get the companion pass. If you have to have points this year, then you can still do both, and get a pass for the rest of 24 and all of 25. Or wait until late this year and get both, so points post in early 25, so you have it all of 25 and 26.
Last edited by daw4888; Mar 25, 2024 at 11:31 am