Applying for Southwest Cards (CP) Late in the Year: What Could Go Wrong? (Updated for 2020)
*This is an update to my 2019 and 2018 posts. All comments and DPs welcome.
At this time of year, many comments suggest that people should apply for Chase Southwest credit cards from now through December, delay meeting the minimum spending requirements so that the bonus points post in January 2021, and get a 2021-2022 Companion Pass. This is a valid concept, but there are potential pitfalls along the way. Since there are tens of thousands of new members in this sub since last fall, let's review the ways in which this has gone wrong. But first a brief refresher.
What is the Southwest Airlines Companion Pass?
The Southwest Airlines Companion Pass allows you to take a designated companion with you for free (not including taxes/fees) on each of your Southwest flights for up to two years. You get this valuable benefit by having 125,000 SW Rapid Rewards points post to your Rapid Rewards account during a single calendar year. Once you qualify, your CP is valid for the remainder of the year in which you earned it and for the entire next year.
Why apply in the fall?
Many people try to maximize the amount of time for which they have the CP by applying for Chase SW credit cards late in the year and having the credit card bonus points post in January of the next year. In this way, it is possible to use the CP for 23 months or so.
How early can I apply?
To maximize the length of your 2021-2022 CP, you must complete MSR(s) after your December statement(s) close, so that the points post to your RR account in 2021. In addition, the terms and conditions for the bonus points say that the minimum spending requirement must be met "within three months of account opening." Historically, Chase has given 115 days to meet the MSR, but starting about June 2019, many people became concerned that Chase may be enforcing a 90 day timeframe. Since that article was written, I haven't seen any DPs where a bonus was denied for completing the MSR from 90-115 days, and I have seen several DPs of success. Take all of this into account when deciding how early to apply.
Whether you abide by the 90 or the 115 day approach, it is technically possible to be approved for a SW card today and complete the MSR after your December statement closes, although you may have to change your statement dates.
Due to personal travel plans, expiring bonus offers, or just plain eagerness, some people want to apply for SW cards as early as they can and still have the bonuses post in January of the following year. But as we shall see, earlier is not always better. (There are also other factors to consider when planning your application schedule, such as recent difficulties in getting approved for the Business cards, 0/30 for a Business card, the One Southwest rule for personal cards, relative bonus offers, etc.)
What could go wrong when you apply in the fall?
Last fall nobody foresaw that the Covid-19 pandemic would limit the utility of the CP in 2020. You should judge for yourself whether the CP will return to full utility in 2021-2022.
In each of the last two years (2019 and 2018), I categorized previous reports of Companion Pass failures/issues by those who had applied for Southwest cards in the fall. Over the last year, I've gathered a fresh crop of data points (reported below). There are lots of ways to meet the MSR too early (or too late), and sometimes unexpected things mess up the timing (fraud, vendor double charge, Chase mistake). I do not summarize these DPs to embarrass anyone, just to alert you to some of the issues you might face when applying early and to help you succeed in your pursuit of the CP.
My advice:
If you are planning to apply for elevated bonuses on SW cards before the upcoming expiration dates (apparently 9/14/2020 through a public link and 9/21/2020 through a referral link), be especially careful not to meet the minimum spending requirement too early. In 2017, there were elevated bonuses that expired in October, and it triggered a bumper crop of CP failures.
Technically, you are OK to meet the MSR after your December statement has closed -- your bonus will then post in January. However, if you don't have urgent plans for using the CP as soon as possible, consider giving yourself plenty of time to meet the minimum spending requirement in January. Don't try to get to one dollar less than the MSR in 2020 -- give yourself a good cushion in case you make a mistake. No reason to stress yourself out over this by cutting things close. Proceed with care, and good luck!
Documented Companion Pass Issues from Applying in the Fall, by Category:
These are DPs collected over the last 12 months. For categories without a DP listed, check the 2019 and 2018 posts for more details.
A. Met the MSR too soon and bonus points posted before January
-
Due to normal spending: One, two, three, four, five, six, seven, eight, nine
-
Honorable mention: ten (this person was able to move the December statement date into January and get the CP)
-
Due to returns/refunds (Chase counts them toward MSR): One, two
-
Due to misunderstanding of statement closing date: One
-
Honorable mention: two (this person was able to move the December statement date into January and get the CP), three (this person was able to get the CP through a match to a higher bonus)
-
Due to misunderstanding MSR amount:
-
Due to not understanding that you must collect 125k RR points in the same calendar year:
-
Due to misunderstanding of when points post (couple of days after statement close, not 6 to 8 weeks):
-
Due to misunderstanding of "calendar year" (it's January through December):
-
Due to fraud:
-
Due to preauthorizations:
B. Met the MSR too late and bonus points posted after December (wanted the points in the current year)
-
Due to misunderstanding of when points post: One
-
Did not properly account for annual fee (it doesn't count toward MSR): One
-
Due to spending too close to statement closing date:
C. Did not meet minimum spending deadline
-
Forgot/didn't know deadline: One, two (this is also a DP of >90 days to meet MSR)
-
Did not calculate spending properly:
D. Unexpected application of "three month" MSR deadline
E. Chase mistakenly applied the wrong promotion (based on 40k/$1k instead of the actual 60k/$2k offer)
F. Unknown reason/inconclusive information
Posted Sep 6, 2020, 5:31 PM UTC · edited