SWA 50K points CC Churn

Discussion in 'General Discussion | Credit Cards' started by MONAX, Nov 6, 2012.  |  Print Topic

  1. MONAX

    MONAX Silver Member

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    I am a newbie here, but I have been reading everyones advice (both here an in other blogs) re: churns. I am seriously considering pulling the trigger on trying to get the SWA Companion Pass. I received the offer on my inbox and that is why I am down this path.

    Here is my scenario. I refinanced my home about 2 months ago and applied for an auto loan back in the summer (July 2012). My credit is score is close to 800. Those are the only two credit pulls during this calendar year. My CC churn plan is to get the following:

    - Apply for the SWA rapid rewards premier card with 50K points
    - Apply for the SWA rapid rewards business card with 50K points (we own a small business with verifiable income, FEIN, etc... it is a legitimate business in other words and I was already thinking about getting a credit card for business expenses anyway)
    - Apply for the Marriot Rewards 30K card. transfer points to SWA to be able to get the 110K for the companion pass.

    Here is my question... with the credit checks (re: refi and autoloan) what are the chances of being denied? Also, since they are all chase cards what are the chances of being denied b/c of that?

    Any thoughts?

    Your thoughts and suggestions are greatly appreciated. Thanks everyone for your time.

    Monax
     
  2. Dad to GO

    Dad to GO Silver Member

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    If your credit is close to 800 you shouldn't have a problem. The biggest issue with Home and Auto loans is BEFORE you get those. You want to limit your credit pulls because you want to get the best loan rate. After you have received those you are good to go.

    In regards to the Marriott card why did you decide on that one? You might be better off applying for the 40K Chase Sapphire and then transferring points to Hyatt... and then from Hyatt to SWA. Hyatt transfer at a 2.5 to 1 ratios so you would only need 12,500 points to get the remaining 5,000 towards the companion pass (You have to spend $2,500 on each card to get the bonus miles). You'd be accomplishing the same thing but still have some points left over.

    Just my two cents.
     
  3. MONAX

    MONAX Silver Member

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    Thank you for the reply. That makes sense on the before part. The only reason I leaned towards the Marriott Card was because I have an account with them, but the balance is not big anyway. I'll definitely explore the card you mentioned.

    Thank you,
    Monax
     
  4. servo

    servo Silver Member

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    It might work, but you didn't mention what cards you already have as well. If you have Chase cards already, I would say this might be a little riskier in terms of being denied, but YMMV.

    First off, if you're going to go for the Companion Pass, make sure that you earn all points AFTER the end of 2012, so you can keep the CP until 2014, because the CP is good in the year you earn it, PLUS the entire next year.

    If you insisted on going with all Chase cards in the churn, I would wait until next week or so, because the Ink Plus/Bold is likely to have a new offer (assumed to still be 50k points but min spend dropped from $10k in first 3 months to $5k). Then xfer Ultimate Rewards points to Rapid Rewards via Hyatt as mentioned above. That nets the most points and the fastest way to CP.

    Credit checks on other loan types are rather insignificant when it comes to credit card apps that follow those. The reverse is where issues may arise. One of the major bloggers did a full card churn just days after his mortgage re-fi closed, and everything went according to plan.
     
  5. edekba

    edekba Gold Member

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    Or just get the 2 SW cards now & pay for the Marriott points. No need to waste a Chase card on a Marriott card that you won't use with Marriott. Think of the purchase of Marriott points as paying for your companion pass ...

    that's just my 2c
     
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  6. Mikus33

    Mikus33 Silver Member

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    I'd hold off on the Marriott card for now. Many people (myself included) have gotten offers for 70k Marriott points after first spend. I think 50k is typical but I could be wrong. Check out the SW forum as I think there are some ideas in there for other options to complete the companion pass.

    Also, depending when you need it for your first SW trip next year you could even hold off until your next churn to get that last 10k in some way.
     
  7. Dad to GO

    Dad to GO Silver Member

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    For some reason I was thinking that the OP didn't have a "real" business like many of those people out there who apply for business cards. The fact that he does have a real business I 100% agree that he should wait until the rumored day that they decrease the minimum spend (November 11th). Using the vanilla reload method to meet the $5k minimum spend he could have 25K Ultimate Rewards points on top of the 50K he would receive from the sign up bonus. After making the transfer to to SWA via Hyatt he would still net over 60K Ultimate Reward points AND have the companion pass. Not a bad deal.
     
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  8. MONAX

    MONAX Silver Member

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    Thank you guys for your suggestions... I really appreciate the time taken to read and reply with you thoughts. I did forget to mention that I do not current hold (or have ever held) any credit card issue by Chase... I have held other credit cards, just not from Chase.

    I am all about more points so I'll definitely wait for next week hopefully they'll lower the spend requirement... Thankfully the 50K promotion on the SWA card is valid all through November. The biggest question is would they change the rules of being able to apply "credit card reward" points towards a companion pass... I sure hope they don't.
     
  9. Dad to GO

    Dad to GO Silver Member

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    This is just my own opinion but I think if they planned on doing that they would give some form of notice... although you never know with credit card companies. Plus... they aren't credit card reward points that you are transferring to SWA but Hyatt points. You use the UR points to transfer to Hyatt...

    I hope they don't change this practice either as I am planning on getting both the Personal and Business SWA cards as well.
     
  10. servo

    servo Silver Member

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    I'm almost certain he meant the ability to use the 50k points from the SWA cards toward the CP. Those ARE points earned via a credit card, and a "reward" in a sense. The only notice we'd hear about ahead of a change is from bloggers who have affiliate links, and that hasn't yet happened to my knowledge. However, in this game, you can never be sure when something is going to change.
     
  11. Dad to GO

    Dad to GO Silver Member

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    Thanks Servo.. You are probably right. I have a feeling if we heard that the ability to use the 50K sign up bonus towards the CP was going away that there would be a mad dash to apply ASAP.
     
  12. Million Mile Secrets

    Million Mile Secrets Silver Member

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    I wouldn't worry about the 50K offer disappearing. Southwest has had the offer in some form every 2 or 3 months for the last 2 years!

    I'm guessing the current offer will last until the 1st week of December, but that is just a guess. It almost certainly will be back again.
     
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  13. MONAX

    MONAX Silver Member

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    Just wanted to follow up to my original thread and give sort of an update. I applied for both credit cards and got them back in December. I already met the minimum balance on one of the cards and I'm within $50 of meeting the other one... I just need to find out when the miles are going to post. Here is a question... if I got approved in December I'm assuming I'm in the last December billing period (as I haven't received my CC stmt yet), so if I meet the spending requirements in January (but again assuming I'm in the last December CC stmt billing period) and my miles posted and I meet my companion pass status 110K requirement, does my CP benefit start counting from January 2013 or actually from December 2012. Hope the question makes sense.

    Thanks guys for your "coaching" though my first successful mini churn.... Looking forward to more... :)

    P.s.: as for the remaining 10k points needed to get the CP I have a biz trip booked in SW that will give me some points (and also paid that trip on the CC, so got more points), plus the $2K I changed on each card for the minimum spending requirement to get the points also adds SW points... All in all, I hope I get that CP soon as in have a Vegas trip coming up that I need to use that CP for.
     
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  14. sharris503

    sharris503 Silver Member

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    Try a couple of AP payments on the card, sounds like you are close and that could put you over the hump, also look in to BB.
     
  15. iolaire
    Original Member

    iolaire Gold Member

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    I'm fairly sure it will be Jan 2013 - which should mean the pass is valid to 2014! But you should be able to apply it to any ticket, even if it was booked previously.
     
  16. servo

    servo Silver Member

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    You want the final points that put you over the hump for the CP to post in January. If they post in December, I'm pretty sure you only get through the end of 2013, not 2014.
     
  17. Dad to GO

    Dad to GO Silver Member

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    My statement went from Dec 8 - Jan 6. I put some spend on it in December but did not cross over the $2K limit until January 2nd. ALL of the miles, including the 50K posted in January and ARE counting towards the CP. Now I gotta wait for my biz card statement to close here in 2 days so I can get the additional miles I need for my CP! I can't wait to start using it! :)
     
  18. canadensechris

    canadensechris Active Member

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    thanks for the info!
     
  19. MONAX

    MONAX Silver Member

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    Dad to GO, thank for the info... I'll be looking for the miles to post soon, my statement should be closing any day now.
     
  20. Dad to GO

    Dad to GO Silver Member

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    Mine closed yesterday, miles posted today. I called SWA to get the companion pass manually added and have already booked my first ticket with it :D
     
  21. MONAX

    MONAX Silver Member

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    So to make sure I got it correctly... you applied and recevied your card in December 2012 right?
     
  22. Dad to GO

    Dad to GO Silver Member

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    I actually applied Thanksgiving weekend. Got my cards in December. Started spending in December but did not cross over the 2k threshold until after January 1st. Statements closed Jan 4th and 13th. Had my companion pass verified on January 14th.
     

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