This morning, Greg wrote about planning your Chase application strategy (See: The best Chase cards that ARE subject to 5/24 rule). A few months ago, standing on the cusp of 5/24, my wife opened two of those cards — two Southwest Airlines credit cards — in order to earn herself a Southwest Companion Pass with her final Chase slots for the next couple of years. Should that be everyone’s strategy?
Here’s what really prompted the title question: Greg also recently posted the latest update in our series about Ben, a well-informed newbie, and his journey opening his first rewards cards (See: 600,000 points and well under 5/24). In response to Ben’s growing portfolio of cards, a reader asked:
I am curious why the Southwest personal and business cards were not included Greg because you can earn a Companion pass for the remainder of this year and all of next which is a valuable asset by getting those cards. What are your thoughts on working those in and what would you replace?
I totally agree that the Companion Pass is a great value. In fact, I’ve often said that in my opinion it’s the best deal in domestic travel.
However, not everyone lives near an airport that’s well served by Southwest (my parents live 10 minutes from their nearest airport, but about 2.5hrs from the nearest airport served by Southwest). Not everyone enjoys the open seating policy (my wife hates not knowing where we’ll sit). Not everyone travels in pairs (I’ve traveled alone to FTU events a number of times in the past year). Further, if you travel for work regularly enough to qualify for elite status, you may prefer flying on the airline with which you’ve earned those benefits (Greg’s got Delta Diamond status and has gotten many upgrades over the years). Some people just won’t travel domestically often enough for it to make sense, or they live near an airport that often has cheap economy fares to the places they’d like to go. In a nutshell, Southwest isn’t for everyone. Personally, I rarely ever fly domestically on anyone other than Southwest thanks in part to the Companion Pass, but the relative value to each person can vary.
I think there are plenty of good reasons not to go after the Southwest Companion Pass. And if you’re not going to try for the Southwest Companion Pass, it’s not a good choice to open the Southwest cards. Even if you might fly Southwest now and then, it would be more worthwhile to focus on Ultimate Rewards cards. They are also subject to 5/24 and Ultimate Rewards points could transfer to Southwest if you really wanted to book a Southwest flight on points. You’d be better off focusing on the 80K signup bonus for the Chase Ink Business Preferred or the 65K current bonus on the Chase Sapphire Preferred or the 55K on the Chase Sapphire Reserve. If you finish with those, I think the earning potential and no-annual-fee of a Chase Ink Cash or Chase Freedom / Freedom Unlimited make them more valuable to have in your wallet than a Southwest card in the long run.
Since the Southwest cards earn 1x on non-Southwest purchases and each point is only worth about 1.6 cents towards Wanna Get Away fares, it wouldn’t make sense to open these cards and spend on them regularly in most situations. So while I agree that the Companion Pass is an incredibly valuable benefit that I use frequently, I think that beauty is in the eye of the beholder — the Southwest Companion Pass just isn’t for everyone.
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Would it make sense to cancel one southwest card (plus) so I can apply for the other (premier) and get another bonus?
It might, but has it been 24 months since you last got the bonus on the Plus? Chase instituted new restrictions this year so you can’t get the signup bonus on a second consumer Southwest card within 24 months:
https://frequentmiler.com/2018/04/06/sapphire-like-restrictions-on-the-southwest-cards-still-some-links-without-new-langauge/
If you are outside of 24 months, you might want to consider the newer Southwest Priority Card if you’re a regular Southwest flyer. I think it’s a better deal.
https://frequentmiler.com/SWpriority/#Goto
That said, I’d recommend waiting to apply in most scenarios. The signup bonuses are likely to increase at some point before the end of the year (the bonus on the Premier is often 50K and sometimes as high as 60K and the Priority launched with 65K this summer). Furthermore, if you apply mid-October or later and wait to meet the spending requirement until January, you give yourself all of 2019 to earn the rest of the points necessary for a Companion Pass if that interests you. An even better idea would be to also apply for the business card from mid-October on and wait to finish meeting the send until January and then potentially earn yourself a companion pass early in 2019 that’s good through December 31, 2020.
I have a business southwest card that I opened last January 2017. I was planning on opening a Personal southwest card this month to try to get companion pass again. Here is my question, will the 5/24 rule affect me if I do this? Or will I still be able to get the $40,000 bonus points? Thanks!
Yes, the Southwest cards are subject to the 5/24 rule. If you have opened 5 or more new personal accounts in the past 24 months, you would not be approved.
If you’re ever curious as to whether or not a card is subject to the rule, click “Best Offers” at the top of any page on Frequent Miler to go to our Best Offers page. Under every chase card, there is a “Note” section that says whether or not the card is subject to 5/24.
My Doc saved $6500 with the companion pass in one year perfect deal IF it works for u ..I wonder how that open seating will work on a MDW>HNL as in no thanks .Years ago their prices were the best today they just have a few sweet spots .
I’m an Inker transfer to lots of airlines SW card just one.
CHEERs
If you want to be stuck in coach, sure. I’ll save my 5/24 for something better than WN.
Can I product change Southwest personal cards to UR earning personal cards?
No.
They used to allow this but it seems those days are over.