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Should we get another Southwest Chase visa card now?

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Question regarding my parents.  Both have had a few Southwest Chase Visa cards before.  Last year, he got two cards (Plus and Premier), got to 110,000 points, and qualified for the companion pass last year and this year.  

I know one can get the bonus on each of these cards only once every two years, and I know about Chase's 5/24 rule.

The plan is for mom to get two more at the end of the year to get another 110,000 points in January earliest to get companion pass again for two more years.  I figure that because she hasn't had a SW card for two years, even though he has, she should still be able to get the bonuses.

He would like to get the SW Chase Business card now and get another 60,000 points.  They use the SW points a lot.  They spend a lot of money on business expenses but also pay off the credit cards every month.  I think he'd be able to get the business card now despite 5/24 (I think he's over right now).

But...I don't want to jeopardize mom qualifying for two more cards in December-ish timeframe.

I know each of my parents has a separate credit score but their credit/spending habits influence each other's score.  Is there some chance Chase may deny her her two new cards (normally they qualify immediately) if he gets a business card now?  Don't even know their credit scores at the moment but should be pretty good.  I'm just not sure how Chase treats members of a married couple with regards to these cards.

Thoughts?

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rated:
1) Who knows if the 60k offers will even be around in December timeframe. 60k has only been around since June and before these recent 60k offers, they dropped to a standard of 40k offers and since you can't transfer hotel points to meet companion pass requirements, it's more difficult to bridge a gap to 110k unless you can charge a lot on the cards themselves.

2) SWA Business falls under the 5/24 rule (some Chase biz cards so, some don't, SWA does). Not many ways around 5/24.

Pretty sure that married couples' credit profiles are completely separate.

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Someone please correct me if I'm wrong on any of these points, I'm not 100%.

Chase SW Business Card still falls under the 5/24 rule and if you do get it, Chase will likely count it against other 5/24 cards since Chase will be able to see it in their database (other non-Chase business cards usually don't count against Chase 5/24 because they don't show on your credit report). Keep this in mind if your dad does apply.

Your parent's credit reports are totally different and not linked at all. The only thing that would cross over is if they are both on a same loan or if one of them is an authorized user on the other's card. This shouldn't count against Chase 5/24 because it's the spouse's account and not their own account, they are just an AU, but the card's history, balance and credit line would affect their credit score as an AU.

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Corndogg said:   Someone please correct me if I'm wrong on any of these points, I'm not 100%.

The only thing that would cross over is if they are both on a same loan or if one of them is an authorized user on the other's card. This shouldn't count against Chase 5/24 because it's the spouse's account and not their own account, they are just an AU, but the card's history, balance and credit line would affect their credit score as an AU.

  I've seen it usually reported that au accounts do count in. 5/24.  And that Reconsideration may decide to exclude them.  Best not to do AUs if chase cards and 5/24 matter.

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Two player mode is generally best with the Authorized User turned OFF. Otherwise, what your parents want to do is common. I am not so sure how the business card would affect the plans.

Southwest Companion discussion group

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Thanks for the responses. I didn't realize SW Chase Biz was under Chase's 5/24 rules - my mistake.

But we might try for one anyway for my father, as long as it wouldn't affect mom's 5/24 so she can get two cards for early 2018. I'm pretty sure she will be under 5/24 by then. He might be just at the edge, but we don't care - they will use the 60,000 points, and if she gets the companion pass for 2018, he won't need to get it again until 2020 - when he should be under 5/24 again.

Yes, I know the 60K offers may not be around in December - in fact, I'm guessing they won't be. (We'd be getting the new biz card right now for him, not to use toward another companion pass.) If the offers are only 50K by end of the year, it's still fairly easy to get 110K points. If only 40K? Then we'll probably just wait until a higher offer comes back to go for the next companion pass.

rated:
Sorry to thread jump, but this is the thread that came up in my search and hopefully any answer to my question will help others who will have the same one.

I got the companion pass for last year and this year, so we're wrapping up now. Total of $4,500 in flights over those 2 years! My question is, should I be cancelling the two cards I have at some point, and does it matter when, in regards to doing it all over again? Thanks!

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cameronj said:   Sorry to thread jump, but this is the thread that came up in my search and hopefully any answer to my question will help others who will have the same one.

I got the companion pass for last year and this year, so we're wrapping up now. Total of $4,500 in flights over those 2 years! My question is, should I be cancelling the two cards I have at some point, and does it matter when, in regards to doing it all over again? Thanks!

  Yes! I would have canceled the cards within the first year as to not continue paying the annual fee (the points are transferred to your SW account so you can close the cards). It doesn't otherwise matter so much when you close the cards as long as you do it before you apply for the new ones. What is more important, however, is timing when you do open the new cards. You aren't eligible for the signup bonus with Chase until 2 years after you received your last bonus on that product line. Hopefully you kept track of when the bonus was posted. I'd wait at least a month after that posting to sign up for the new card(s). Also keep in mind the 5/24 and keep it under 5 cards opened in the last 24 months.

Ideally you would wait 25 months after your signup bonus posted to open the new cards. Start accumulating points at will, but wait until at least January 2018 to actually get the 110k points to receive your companion pass. The 2 year clock starts ticking during the calendar year. It'd be a  shame to receive it in December and miss out on a whole year of companion travel.

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Ah gotcha, so there'd be no way that'll work for me then because I'm certainly within 2 years of opening the cards in 2016. Maybe having my wife open the cards this time would be the way to go. Seems like people are doing that. I figured that while I was earning effectively double points (because of the CP) I should keep spending on the card throughout the year, and I certainly got more than $100 worth of extra free flights because of the spending I did after my one year anniversary. I'm sure there would have been other ways to get those points, but the ease of keeping the card was worth the $100.

So the risk of when to apply comes from the fact that the 60k bonus apparently expires Oct 4, I saw. That makes it a bit tricky. Thanks!

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cameronj said:   I'm sure there would have been other ways to get those points, but the ease of keeping the card was worth the $100.

 

  If you have the $99 fee version, "keeping it" only costs ~$10/yr.  It give 6000 pts at anniversary.  I generally book at ~1.7c/pt vs cash price, which is worth ~1.5c/pt (accounting for no points earned on the flight booked with points).

It seems like a double-edged sword as to whether it helps or hurts to actively use the card to earn a new companion pass (and I don't earn or use one anyway so not applicable to me).  The reason is that, yes, your spend goes towards the 110k points but on the other hand spending the points to buy flights is resulting in Not earning towards CP on those flights since they're booked with flights.   Personally I don't have any excess spend to go around anyways to throw on the low-value earnings Southwest card (earns ~1.5% value rebate on purchases or 3% on SW flights).  It's also "stupid" to put majority of purchases on it.  For travel purchases, a card like Sapphire Reserve makes more sense due to the insurance components (and provides 1.5X as much rewards too!).  For extended warranty purchases, a card like any Citi card provides much broader warranty terms.

I actually have 2 SW cards that remain open after several years though.  This is partly due to the relatively low effective fee ($10 each) after accounting for anniversary points.  I also have received best BT offers on the Chase fee cards (~2% fee, 0APR, ~12 months) and have BTs on bus southwest card.  I never put regular spend on them, though.  Additionally, there are no attractive products you're allowed to convert them to -- only lower "fee" but higher-effective-fee (due to lower/no anniversary points) southwest visas.  If I need credit limit when opening a new Chase card I will have the Southwest card available to put on the chopping block for possible closure if they don't want me to have more # cards or higher combined CL.

rated:
Right. Watch your OTHER credit cards besides the Chase card to make sure you stay under 5/24.

If you got a Plus and a Premier card before, you can also get the third one NOW, the Premier business card, this time and one of the other two after two years from last bonus. It wouldn't be a bad idea to apply for one of those now and push your spending so you don't get the 60K bonus until January. Then whenever your two year anniversary from last bonus comes up on either Plus or Premier, you can apply for that card again. (Plus has a cheaper annual fee.) The bonus offer may only be 40K at that point...but if you got the 60K from a business card this time, you'll be most of the way to 110K by then (and because you get 1 point per $1 spent, spending $3,000 to qualify for the bonus on each card gets you to to 106K points right there.

So let's say you got your last Chase SW Plus card bonus in May 2016. Get the business card now, get your 60K points (make sure you push spending until January!), and then in May apply for the Plus card again (cancel it now) at whatever bonus level it is at that point, even 40K points. Then you can get the companion pass again for much of 2018 and all of 2019 when you get to 110K points in 2018.

You don't really need a business to apply for the Chase SW Business card - for business name, just put your name. I've had one a few times and my name just appears twice on the card, which is a little weird (though I technically do qualify for having a business, but I don't have a business name).

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ahallfatwallett said:   You don't really need a business to apply for the Chase SW Business card - for business name, just put your name. I've had one a few times and my name just appears twice on the card, which is a little weird (though I technically do qualify for having a business, but I don't have a business name).
  You do need a business.  You don't need a business name or be incorporated or such.  Applying for credit under false pretenses is credit fraud.  There are blogs that suggest no real business and lying does no harm, but really it's still fraud, just like putting in fake income numbers on a personal application or applying for credit in pets' or fictitious names.

Sole proprietor that reports on Schedule C is a legitimate "business" and results in entering your name as the business name, and your SSN as the taxID (assuming no employees other than yourself).  You DONT need high revenues from that business and likely don't need any documentation (unless they review and ask you.... in which they can close all your accounts if they catch your lie if you had NO business).  I have two Chase Bus cards.  Each one I only had $1k expected revenue for the next year on the application (mostly eBay ).  ~$18k limit on the last one approved.

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ahallfatwallett said:   Right. Watch your OTHER credit cards besides the Chase card to make sure you stay under 5/24.

So let's say you got your last Chase SW Plus card bonus in May 2016. Get the business card now, get your 60K points (make sure you push spending until January!), and then in May apply for the Plus card again (cancel it now) at whatever bonus level it is at that point, even 40K points. Then you can get the companion pass again for much of 2018 and all of 2019 when you get to 110K points in 2018.  
 


Ah, I hadn't considered that angle.  Yes you lose a few months of having the bonus, but you lock in the likelihood of getting the bonus even if SW becomes less generous with bonus point offers.  Something to consider.

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