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Chase’s 100,000 point offer for the premium Southwest Airlines business card will earn you enough points for a Companion Pass as soon as you’ve spent enough to earn the bonus.
- 70,000 points after you spend $5,000 on purchases in the first 3 months.
- Plus, earn an additional 30,000 points after you spend $25,000 on purchases in the first 6 months.
Your $25,000 spend can earn you 125,000 points or more, generating a companion pass for the rest of 2020 and for all of 2021. And you have 125,000 points which – doubled via the Companion Pass – which buys about $3750 worth of travel.
I was one of the first people to earn a 2021 companion pass this year. I’m itching to pull it out and use it again in the coming months. When you earn it this year it is valid for the entire rest of the year and the full following year which is why investing in earning it now makes so much sense. If you’re grounded, spend time preparing to get out after being cooped up.
They actually send you a physical card in the mail, even though everything you need is all electronic.
There are (4) things to know about applying for this card.
- In order to be eligible for this bonus you cannot be a current cardmember of this card, or received a new cardmember bonus for this card within the past 24 months. Having another Southwest card, or another Southwest business card, doesn’t make you ineligible.
This new cardmember bonus offer is not available to either (i) current cardmembers of this business credit card, or (ii) previous cardmembers of this business credit card who received a new cardmember bonus for this business credit card within the last 24 months.
- This card is subject to ‘5/24’ which means Chase will generally only approve you if you’ve had fewer than 5 new cards in the last 24 months.
- It’s a small business card, but you’re more likely to be eligible for one than you think. Chase says that getting a small business card is one of the things you should do as you start your business, that it’s often the first resource many business owners look to as they start to grow. A small business card allow yous to separate business from personal expenses and builds the credit history and identity of your business.
- Earning the full bonus requires spending $25,000 on the card within 6 months, an average of $4167 per month. However that’s easier to do than you may realize.
Here are 7 ways to meet the required spending for this bonus easily and without making out of the ordinary efforts.
- You probably spend more than you think. So focus on the card you’re trying to meet minimum spend with. When adding up spend over a number of months the amounts start to sound big (“I don’t spend over $4000!”) but you may spend more than you realize and it won’t take as much to get over the top as you think. Add up all the spend across your credit cards to start with
- Make sure you pay all your bills with a credit card, including your utilities. Break out of path dependency, if there’s anything you pay by check, via billpay, or ACH you should check to see whether it’s possible to pay by credit card.
- Only get one card at a time. If that’s all the spend you can handle. Know how much you can easily spend, spread that out over new cards, and wait to get your next card until you are sure you have the available spending capacity.
- Plastiq for rent or car payments or mortgage (mortgage is MasterCard only). Once your biggest bills can go on a credit card it’s much easier to meet spend requirements.
They charge 2.5% to charge your credit card (purchase) and mail a check for your bills. They also run promotions with lower fees.
- Prepay your bills. Since you have a specific period of time — from card approval (date the account is created) to the deadline for earning the bonus — you may want to pull future bills into the present. Spending from months 7, 8 and 9 can be paid in months five and six if you need to in order to meet a spending requirement and you have the cash flow to do it.
- Pay quarterly taxes or end of year taxes due. Some people even overpay their taxes (make a quarterly payment) and get a refund later. Pay1040 charges 1.87% and PayUSATax charges 1.98%.
- Reimbursable business expenses. Some people are required to use company credit cards or purchasing cards, but even there are you required to do it for all business spend? And how firm is the requirement?
If you can use personal credit cards, and your company is stable (can reimburse you) and expeditious (will do so quickly enough) then you may want to put as many work expenses on a personal card as possible. That could be air, hotel, ground transportation and meals but perhaps you can even put business purchases — equipment, advertising, computers — on your card? See what precedents there are with other employees, what your boss will support, and what policies are in place.
The Southwest Rapid Rewards® Performance Business Credit Card has a really great offer, that many readers will be eligible for, but it requires a good deal of spend to earn the full bonus. You may be a lot closer to that spend than you think though.