Are you looking to earn the Southwest Airlines Companion Pass?
Perhaps you’re attracted to the idea of unlimited two-for-one tickets, or you’re just fed up with Delta’s recent, unpopular changes to their SkyMiles program and are looking to switch carriers.
I’ve been a Companion Pass holder for 12 years, and my wife and I have both held the pass for most of that time. As one of the country’s leading experts on credit cards and travel rewards, I’ve perfected a strategy of using their credit card offers to earn my passes.
Fall and winter are the best times to earn the pass
When you earn the Southwest Airlines Companion Pass it’s valid until the end of the following calendar year. So if you earn the pass in January of 2025, it will be valid until December 31st, 2026, nearly two full years.
So if you’re reading this in 2024, here’s my recipe to earn the 125,000 Rapid Rewards points needed to earn your pass in the first few days of January of 2025.
- Apply for the Southwest® Rapid Rewards® Performance Business Credit Card. This card will offer you 80,000 points after you spend $5,000 on purchases within three months of account opening. It has a $199 annual fee, but offers you free WiFi, a $100 Global Entry or PreCheck credit and 9,000 points on your account anniversary. If you don’t know if you qualify for a small business card, or how to apply for one, see my suggestions below. Apply for this card
- Apply for the Southwest Rapid Rewards® Plus Credit Card. This card offers you 50,000 points after spending just $1,000 on purchases within three months of account opening. It has a $69 annual fee, and offers you another 3,000 points on your account anniversary. Apply for this card
- Change your payment due dates to the 26th. When you activate your new cards, change the due date to the 26th of the month. This will make your statement closing date the first of the month. That’s the day that you want to receive your points.
- IMPORTANT: Don’t spend money on the cards until after December 1st. If you use the cards to earn the new account bonus on or before December 1st, then you’ll receive your bonus in December, and your pass will expire next year. But if you meet the minimum spending requirements in December, your statements will close on January 1st, and you’ll earn the bonuses and receive the Companion Pass in early January. (Sometimes I get the pass on January 2d, but sometimes it comes a few days later). This way, it will be valid for nearly two years.
Is it worth it? Let’s do the numbers
When you combine the points received from the bonuses and the spending required to earn them, you’ll earn a minimum 136,000 points. You’ll also earn another 12,000 points on your account anniversary, which are yours to keep, even if you choose to close your account at that time. This is a total of 148,000 Rapid Rewards points.
With a value of 1.4 cents each, these points alone are worth about $2,072 in travel. When you add your companion to your tickets, that value is doubled to $4,144, and potentially more, since you can use the pass an unlimited number of times, not just when redeeming these points.
On the other hand, you’ve signed up for two credit cards with combined annual fees of $268. So the $4,144 in value that you’re receiving is over 15 times the cost of these card’s annual fees.
So yes, I think it’s definitely worth it!
Do you qualify for a small business credit card?
Many people aren’t aware that they can qualify for a small business credit card, but anyone who makes money outside of their employer is eligible. This includes anyone who sells things online, provides child care services or does some consulting. In fact, it’s estimated that about half of American adults have some sort of income outside of employment, often called a side-hustle.
Credit card issuers are also clear about the fact that they would like you to apply for a small business card as soon as you start your business, before you have any revenue or expenses.
So if you have a side-hustle, or are considering starting one, then you can easily qualify for a small business credit card. And as you’ll see below, you don’t have to incorporate or do anything else.
How to apply for a small business credit card
When you apply for a small business credit card, you’ll be asked for your Employer Identification Number (EIN). If you are unincorporated, you can use your Social Security Number (SSN) instead. You will also be asked about the type of company you have. Most people with a side hustle are unincorporated sole proprietors.
The application will also ask you about your business revenue and expenses. If you haven’t started your business yet, then you can supply estimates of your future revenue and expenses.
If you apply and don’t receive immediate approval, I recommend calling the Chase Business Credit Card department at 800-453-9719. You will usually be able to speak with an agent who can review your application and grant you approval.
Would you like more help with travel rewards?
The Southwest Companion Pass is just one of many techniques I use to travel for free with my family of five, across the country and around the world. To learn more about how to do it, watch my appearance on the Kosher Money Podcast and sign up for an Award Travel Consultation.