southwest credit card cancellation

Southwest credit card cancellation

Chase Bank issues numerous consumer-oriented credit cards covering the spectrum from basic to premium, all of which offer some kind of travel or cashback rewards: two general cards with outstanding travel features, four cashback cards, and nine cards co-branded with an airline, hotel chain, or resort.

Chase issues mostly Visa cards, and all Visa cards include free coverage for damage to cars rented with the card (secondary coverage, except where noted), purchase protection, and extended warranty benefits. Most also include up to $3,000 secondary insurance for lost baggage. The one MasterCard offered by Chase, IHG Rewards Club Celect Credit Card, provides similar benefits.

Most Chase cards for travelers also include up to $100,000 in accidental death and dismemberment insurance, which is a great-sounding benefit that is actually of trivial value—it pays off only if you're killed or maimed in a plane or train crash.

Unless otherwise noted, variable APRs currently range between 16.99% and 23.&9%; balance transfer fees are the larger of $3 to $5 or 5%; cash advance fees are the larger of $10 or 5%; most cards do not charge extra for adding cards on the base account.

The comparison below focuses on the cards that are most useful for the needs to travelers, and how they rate.

Earning: 2 points per dollar charged for travel and dining, 1 point per dollar for other charges. Points transferrable, 1:1, to loyalty programs of seven airlines (Air France/KLM, British Airways, Korean, Singapore, Southwest, United Airlines, and Virgin Atlantic) and three hotel programs (IHG, Marriott, and Ritz-Carlton).

Estimated point value 1.&¢; cash value 1.25¢ when used to buy air tickets and hotel accommodations, otherwise 1¢.

Travel Insurance: Trip cancellation up to $10,000, trip delay up to $500, baggage delay $100 per day up to five days.

Financials: Annual fee waived for 15 months, then $95. No foreign purchase surcharge. Enrollment bonus: 50,000 points after charging $4,000 in first three months.

Summary: A good card for travelers who want to maximize miles/points in one or more airline or hotel programs.

Earning: 3 points per dollar charged for travel and dining, 1 point per dollar for other charges. Points transferrable, 1:1, to loyalty programs of seven airlines (Air France/KLM, British Airways, Korean, Singapore, Southwest, United Airlines, and Virgin Atlantic) and three hotel programs (IHG, Marriott, and Ritz-Carlton).

Estimated point value 1.&¢; cash value 1.5¢ when used to buy air tickets and hotel accommodations, otherwise 1¢.

Other Travel Features: No-fee access to more than 1,000 airport lounges through membership in Priority Pass. $300 annual travel credit. $100 allowance every four years to cover costs of PreCheck or Global Entry enrollment/update.

Travel Insurance: Emergency evacuation up to $100,000, $2500 medical/dental expenses, trip cancellation up to $10,000, trip delay up to $500, baggage delay $100 per day up to five days.

Financials: Annual fee $450. No foreign purchase surcharge. Enrollment bonus: 50,000 points after charging $4000 in first three months.

Summary: A good card for frequent travelers who buy a lot of air tickets and hotel rooms, want to maximize miles/points in one or more airline and hotel programs, and enjoy the benefits of an airline lounge program. For frequent travelers, the features offset the high annual fee.

Earning: 1.5¢ cash value per dollar charged.

Financials: Annual fee zero. APR waived for first 15 months, then about 1% below Chase standard. 3% foreign purchase surcharge. Enrollment bonus: $150 credit after charging $500 within first three months.

Summary: A good general no-fee card with above-average cash payback, but lacks travel features.

Earning: 5¢ per dollar charged to one of several categories that change every quarter, 1¢ per dollar on other charges. Current categories: grocery stores, gas stations, and restaurants and movies.

Financials: Annual fee zero. APR waived for first 15 months, then about 1% below Chase standard. 3% foreign purchase surcharge. Enrollment bonus: $150 credit after charging $500 within first three months.

Summary: I simulated yearly expenditures for two different demographics, and found that the final payback on both Freedom cards was about the same. This card is a good choice for consumers who tweak their spending patterns to the payout categories; the Chase Unlimited card is good for consumers who just want an across-the-board good payback. Travel features are minimal.

Earning: 3¢ per dollar charged at restaurants and gas stations; 1¢ per dollar on other charges.

Financials: No annual fee, APR starts a bit higher than standard. 3% foreign purchase surcharge. Enrollment bonus: $200 credit after charging $500 during first three months.

Summary: Good for folks who eat out a lot and drive a lot; the Chase Freedom cards probably offer a better overall cashback choice for most consumers. Travel features are minimal.

Earning: 3¢ per dollar charged to Amazon (5¢ for Prime members), 2¢ per dollar charged at restaurants and gas stations, 1¢ per dollar on other charges.

Travel Insurance: Baggage delay $100 per day up to three days.

Financials: No annual fee. APR a bit lower than standard. No foreign purchase surcharge. Enrollment bonus: $50 gift card.

Summary: Good for folks who do a lot of shopping on Amazon, especially for big-ticket items. Travel features are minimal. Given no annual fee, a good second card for frequent Amazon shoppers who also use another card for travel.

Earnings: 3 Avios points per dollar charged for British Airways and partner line tickets, 1 Avio per dollar on other charges. Estimated point value 1.2¢.

Other Travel Feature: Complimentary frequent flyer companion ticket after charging $30,000 per year.

Travel Insurance: Trip delay and baggage delay $100 per day for up to three days.

Financials: Annual fee $95. No foreign purchase surcharge. Enrollment bonus 50,000 Avios after charging $3,000 in the first three months; 100,000 Avios after charging $20,000 the first year.

Summary: Good for folks who fly a lot on British Airways; otherwise, below-average value.

Earning: 2 United miles per dollar charged on United Airlines; 1 point per dollar on other charges. Estimated mile value 1.5¢.

Other Travel Features: Up to two free checked bags on each United flight. Two United Club passes per year. Priority treatment at airports.

Travel Insurance: Trip cancellation up to $10,000, trip delay up to $500, baggage delay $100 per day up to five days. Primary rental car collision coverage.

Financials: $95 annual fee. No foreign purchase surcharge. Enrollment bonus: 40,000 miles after charging $2,000 the first three months.

Summary: Very good card for frequent United travelers for both mileage earnings and other features.

Earning: 2 miles per dollar charged on United Airlines, 1.5 miles per dollar on other charges.

Other Travel Features: Free unlimited admission to United Clubs. $100 credit after first purchase. Up to two free checked bags on each United flight. Priority treatment at airports.

Travel Insurance: Trip cancellation up to $10,000, trip delay up to $500, baggage delay $100 per day up to five days. Primary rental car collision coverage.

Financials: Annual fee $450. No foreign purchase surcharge. Enrollment bonus $100 credit after first charge.

Summary: Excellent card for frequent travelers who fly United a lot. $450 annual fee is less than the cost of regular United Club membership, and earning 1,5 miles per dollar charged is a better rate than rates on other airline cards. But frequent travelers on multiple airlines might consider cards that transfer points to multiple lines.

Earning: 2 Southwest points per dollar charged at Southwest, 1 point per dollar on other charges. Estimated point value 1.3¢.

Travel Insurance: Baggage delay $100 per day up to three days.

Financials: $99 annual fee. No foreign purchase surcharge. Enrollment bonus 60,000 points after charging $1,000 during the first three months.

Summary: Good card for frequent Southwest travelers, but other features are below average.

Earning: 5 IHG points per dollar charged at IHG hotels, 2 points per dollar charged at restaurants, grocery stores, and gas stations, 1 point per dollar on other charges. Estimated point value 0.6¢.

Other Travel Features: 3,000 point annual bonus. Instant platinum status.

Travel Insurance: Trip-cancellation $5,000, baggage delay $100 per day up to five days.

Financials: No annual fee first year, then $49. No foreign purchase surcharge. Enrollment bonus 80,000 points after charging $1,000 during the first three months.

Summary. A good choice for travelers who stay frequently at IHG hotels, but point values are low for other purchases. Given the low annual fee, this is a good second card for frequent IHG users who also use another card for travel or cashback.

Earning: 3 points per dollar charged at Hyatts, 2 points per dollar charged for airfares, car rentals, and restaurant meals, 1 point per dollar for other charges. Estimated point value 1.4¢.

Other Travel Features: One free Hyatt night per year.

Travel Insurance: Trip cancellation up to $5,000, trip delay up to $500, baggage delay $100 per day up to five days.

Financials: Annual fee $75. No foreign purchase surcharge. Enrollment bonus: 40,000 points after charging $2000 during the first three months.

Summary: Good choice for frequent Hyatt users.

Earning: 5 points per dollar charged at Marriott, 2 points per dollar charged for air tickets purchased directly with the airline, rental cars, and at restaurants; 1 point per dollar for other charges. Estimated point value 0.8¢.

Other Travel Features: One free night per year.

Travel Insurance: Trip cancellation up to $5,000, trip delay up to $500, baggage delay $100 per day up to five days.

Financials: Annual fee $85. No foreign purchase surcharge. Enrollment bonus: 80,000 points after charging $3,000 in first three months.

Summary. Good choice for frequent Marriott users.

Earning: 5 points per dollar charged at participating Ritz-Carlton and SPG (Starwood) hotels, 2 points per dollar charged for air tickets purchased directly with the airline, rental cars, and at restaurants; 1 point per dollar for other charges. Estimated point value 2¢.

Other Travel Features: Two free nights per year. $300 annual travel credit. $100 discount on up to five coach airline tickets per year. No-fee access to more than 1000 airport lounges through membership in Priority Pass. $100 allowance every four years to cover costs of PreCheck or Global Entry enrollment/update. Upgraded hotel club status.

Travel Insurance: Emergency evacuation up to $100,000, medical/dental expenses p to $2500, trip cancellation up to $10,000, trip delay up to $500, baggage delay $100 per day up to five days.

Financials: Annual fee $450; extra cards on account $175 each. No foreign purchase surcharge.

Summary: A good card for frequent travelers who stay at Ritz-Carlton or Starwood hotels and enjoy the benefits of an airline lounge program, but other premium cards provide more flexibility.

Earning: 2 points per dollar charged at Disney and related locations, grocery stores, and gas stations; 1 point per dollar for other charges. 10% discounts on Disney merchandise and in-park services.

Travel Insurance: Baggage delay $100 per day up to three days.

Financials: Annual fee $49. 3% foreign purchase surcharge. Enrollment bonus $200 Disney gift card after charging $500 in first three months.

Summary: Great for Disney habitués; other travelers, not so much.


Should I Cancel a Credit Card? Your Questions Answered!

Southwest credit card cancellation

It’s a question I get asked more than almost any other:

Should I cancel a credit card?

There are a lot of questions, rumors, and misinformation surrounding when, and if, you should cancel a credit card.

And unfortunately, many people do the wrong thing!

The answer, of course, isn’t cut and dry, and so I’ve broken down the main question in to a few smaller ones to make it easier to figure out whether you should cancel a credit card or not.

When I want to open a new credit card, should I cancel an old one?

No. Most people wrongfully assume that when they are looking to open a new credit card that they should close their old ones.

In fact, closing one or more of your old ones before opening a new might actually hurt your chances at getting a new credit card.

Keeping older credit cards open actually helps your credit score stay high. It keeps your average length of accounts high and it also gives you more available credit.

So unless you have another reason to close your credit card, you should NOT close it when looking to get a new one.

Each person will have a different situation, but there are a few factors everyone should consider to determine whether they should cancel a credit card or not.

I will ALWAYS keep a card open if it meets any of the three criteria:

1. The card has no annual fee.

If a card has no annual fee, then there is absolutely no reason to cancel it. You are not paying to have it, so you might as well keep it open and let it help keep your credit score high.

This is why cards like the Chase Freedom, American Express Hilton Hhonors, and Citi Hilton Hhonors are such great cards. Get them, get the sign up bonus, and keep them open forever.

2. The card offers an anniversary bonus.

An anniversary bonus is when you get a reward each year for paying the annual fee.

Usually, the reward is enough to negate the annual fee, which basically makes it a fee-free card as long as you use the bonus.

And sometimes, the anniversary bonus is worth much more than the annual fee!

For example, the Chase Marriott has a fee of $85 but gives you a free night in a category 1-5 hotel each year. I just used my free night to stay at the JW Marriott Shanghai, which normally would cost me $237!

The card that offers probably the best anniversary bonus is the Chase IHG hotel card. For a $49 annual fee, you get a free night at ANY Intercontinental hotel.

This includes an overwater bungalow at the Intercontinental Bora Bora, which would normally run $860!

Many hotel cards offer an anniversary bonus, and so do some bank cards and/or airline credit cards.

Bottom line: if a card offers an anniversary bonus, it’s best to keep it open.

Some points and miles are better than others (read my breakdown of which ones are best), which means that cards that earn those better points are the cards you should be using for your everyday expenses.

For example, my favorite points are Chase points and SPG points (which transfer to AA miles). Therefore, I’ll use the Chase Sapphire Preferred and the Chase Ink Plus, both of which earn Chase points, for my everyday spending.

Then, when I need AA miles, I’ll use my SPG card.

Even though all of these cards have an annual fee and none offer an anniversary bonus, I still keep them all open.

That’s because they allow me to earn the points I want to earn for my everyday spending.

These are the only 3 cards that I keep open as my everyday spend cards.

How many cards should I keep open and how many should I close?

You should always keep at least a 50-50 split between cards you keep open and cards you close. For example, if you’ve applied for 6 credit cards over the last year or two, you should keep at least 3 of them open.

A 50-50 split will help keep your credit score stable.

Of course, the higher the percentage of cards you keep open, the better, but make sure it’s at least 50%.

Should I cancel a credit card after I receive the sign up bonus?

If you sign up for a credit card, make the minimum spend, and get the sign up bonus, you should NEVER cancel it right after that.

If you cancel a credit card only a few months after you get it, you’ll not only be hurting your credit score but you could also potentially get yourself noticed by the banks.

If they notice you doing this, they may blacklist you and not allow you to get any more of the products.

If you’ve asked yourself the questions above and come to the conclusion that you should cancel your credit card, then you have to make sure you get the timing right.

For each card, you’ve either had the annual fee for the first year waived or you’ve paid the annual fee for the first year.

This means that it makes no sense whatsoever to cancel a credit card before the annual fee comes up again 12 months later.

If you are going to cancel a credit card, hold on to it for at least a year. This will help your average age of credit, which means you’ll keep your credit score high.

Then, cancel the credit card when the annual fee comes due, 12 months after you first opened it.

Will I lose my points or miles after I cancel a credit card?

Ah, I knew you’d be asking that!

And that’s why I wrote a separate post on this exact subject.

The answer depends on what type of card it is, so make sure to read this post before you cancel:

What if I don’t want to cancel a credit card but I also don’t want to pay the annual fee?

If you are looking to keep more credit cards open to keep your credit score high (remember, keep at least 50% open), then you can do two things:

1. Ask to downgrade your card to a no-fee card.

Many of the best travel cards have “lower versions” that have no annual fee attached to them.

An example of this is the Chase Sapphire Preferred and the Chase Sapphire. If you don’t want to pay the annual fee for the Chase Sapphire Preferred, you can downgrade to the Chase Sapphire.

The good part of this is that it keeps your original account open and helps your credit score.

The one thing to be careful of is that sometimes the lower version of the card has different terms and conditions.

For example, the Chase Sapphire Preferred has no foreign transaction fees, gives you 2x on travel, and earns you “premium” Chase points, which can be transferred to partners.

By switching to the Chase Sapphire, you’ll lose those perks (see the side by side comparison here), including the ability to transfer to partners.

Downgrading is a great option, but always make sure you aren’t losing out on a perk that you value over the annual fee.

2. Asking for a retention bonus

Sometimes, when you call in to cancel a credit card, you’ll be transferred to a specialist. The job of that specialist is to get you to not cancel the card.

In order to get you not to cancel the credit card, they may offer you bonuses, such as statement credits or free miles.

If the offer is good enough to negate the annual fee, then I definitely suggest keeping the card open. The more open cards, the better.

If it isn’t, then decide whether you want to keep the card open or not.

But I’d never cancel a credit card without at least asking!

Overall, it’s better to keep as many credit cards open as possible, as this will keep your credit score high. And always make sure to keep at least 50% of your cards open.

If a card has no annual fee or an anniversary bonus, definitely keep it open.

If it’s a great overall card, like the Chase Sapphire Preferred or the American Express SPG card, then you may also want to keep it open.

If you do decide to cancel a credit card, NEVER do it until the annual fee becomes due a year after you opened it.

By following these simple rules, you should be able to keep your credit score high, stay in good rapport with the banks, and minimize the amount of annual fees you are paying!

What is your best advice for canceling a credit card? How do you determine which cards to keep open?

Keeping older credit cards open actually helps your credit score stay high.

So does it follow if you cancel a credit card less than your average that your average goes up? Is is the average of all open cards or all cards reported?

If all reported, how long do closed cards stay in the calculation.

@Carl P.- Interesting question. I believe the average is for all cards reported, and that the closed cards will stay in the calculation indefinitely. I’m not 100% sure on that, but I’ve seen credit reports of people who have closed credit cards and had them still on their report years later. If someone could weigh in and tell us more definitely, that’d be great!

What you don’t factor in is that the sooner you cancel a card, the sooner you can reapply to get the signup bonus again

@Cogswell- That’s true, but most companies now won’t let you get the sign up bonus again for a card. Amex used to, but they seem to cutting that cord, Chase has never really let you. Barclays lets you, and it doesn’t seem whether you have a card open or not. So you are right, that could be a factor, but I’d consider it a very minor one nowadays since the credit card companies rarely let you get the bonuses again, and if they do, you can get them whether you have a card open or not.

I have consistently received sign up bonuses for the same cards. I do always wait at least a year plus a few months minimum before reapplying for a card I previous canceled. I have received the Chase United bonus at least 3 times, AMEX Delta a few times, and Citi American a few times. Some tips for doing this though: (1) I never, ever, ever tell the credit card company I have done this, (2) try to wait as long as possible by first going after a business card or a card in your spouse’s name before going back to the original card you held in your name, (3) I try to “sprinkle” in new info on the app every time (e.g. using a different email, abbreviating vs spelling out words in my home address, using my first and middle initial vs my first name, etc.), I know it is still my same soch every time, but until this system stops working I’m going to keep doing it the same way. Love the website! Cheers.

@M L R- Some great advice, and interesting that you were able to get some of those cards a few times, especially the Chase United. I’m at the point where I have to go for some cards a second or third time, so I’ll take some of your advice and try to change things around a little bit. Thanks for the heads up!

Nice post, this has always been my question. I have not start my app-o-rama game yet. But would too many closed accounts hurt your credit when applying mortgage when buying a house? Let’s say I have a plan to buy a house in 10 years, I will start app-o-rama now and stop after 7 years, in the meantime may have many closed accounts. At year 10 applying for the mortgage, my score maybe excellent at the time, do you think I can still get a good mortgage interest rate at that time, will the lenders see that I have so many closed accounts and consider me high risk? Appreciate your input!

@Shawn- I don’t think it’d be that much of a factor. After 10 years or so, you’re credit history will be so much different than it is now, and the major factors would be paying off your credit cards and earning good credit that way.

So yes, you’ll have some closed accounts on there, but as long as you keep a 50-50 split, your credit 10 years from now will be much higher than it is now.

I’d add if you’re looking to apply for a mortgage in the next year (vs 10), you may want to wait on the app-o-rama until after you close the loan…

@M L R- Totally agree. I wouldn’t go too crazy if you are looking to get a mortgage soon. 1-2 cards is ok, but I wouldn’t risk going for anything more than 3.

I had heard something about Amex backdating the “open date” on a new card to match the “member since” date.

Is this (still) true (if it was ever)?

@Carl P- Yes, this is true, and still true. That’s a really nice perk of Amex. If you got your first Amex in 2000, let’s say, then every Amex you open has a date of 2000. This will help your average age of accounts a ton. As far as I know, Amex is the only ones to do this, and I have no clue why, but it’s great!

My husband and I were just talking about this yesterday as we have a card we want to close. When you mention the 50/50 ratio, how long does that apply for? For example, we canceled a card 3 years ago, would that still be part of this ratio? How long does it take for the closed cards to no longer have a negative impact, or to no longer show up on your credit at all?

@Katie- To be honest, I’m not sure how long it takes closed cards to drop off your account. I’d love if someone else weighed in with a better answer though! To be safe, I usually look at about 3 years out. After it’s been closed for 3 years, I don’t typically count it in my calculations.

My closed credit cards stayed on my credit reports for 11 years!

@Lidia – That definitely shouldn’t happen. I would call up the bureaus and get that removed.

7 years non bankruptcy (charge offs, delinquent, lawsuit)

10 in bankruptcy..

accounts you close yourself in good standing up to 10 years and accounts with positive feedback can last longer

@Jennifer Logan- Does it take 7 years for a regular closed card to fall off?

I agree with Cogswell. I have cancelled US Airways and British Airways cards, waited months, and got them again. I canceled IHG VISA cards and, at once, got the Master Card versions for each of us to get another 81,000 points.

@Jerry Mandel- When a card switches from Visa to Mastercard or vice versa, you are right, you can get the bonus again. That’s a special circumstance that people should take in to account, for sure.

So, how many open credit cards do you have right now? Between my hubs and I, we are right at 30. :-/

@Toni- Umm, around 20-25. Always fluctuating!

I’ve had a Southwest card for a few years and I didn’t mind paying the fee to get the points but I’m considering closing it and applying for a new one and new bonus. Any reason I shouldn’t do this?

@Steph- You’ll need to apply for the different version. There are 4 versions: Personal Plus, Personal Premier, Business Plus, Business Premier.

You won’t be able to get the bonus again if you apply for the same type. Easiest way to know which one you have is that the Premier is $99 annual fee, Plus is $69.

If I were you, I’d try to open the other one BEFORE closing the one you have. If they ask you why you need two, give them a reason like “well, I want the Premier because I want a card with no foreign exchange fees” or one of the other little differences between the two.


Card Intervention: Southwest Airlines Premier Card vs. Chase Sapphire Preferred

Luke Sims – 10xTravel Contributor

Southwest credit card cancellation

Here at 10xT we have noticed a trend that’s hurting our readers and its time we say something about it. So we have decided that its time for an intervention.

You might want to sit down for this next part.

Many of you have fallen deeply in love with Southwest’s co-branded credit cards and your love affair is keeping you from your full travel potential.

Yes, we know that you think the Southwest card has been treating you well. After all, those easy redemptions, no blackout dates, and free changes/cancellations are great.

But, we think think that you should dump your Southwest credit card for someone better, the Chase Sapphire Preferred.

Let me start off by saying that I am not bashing any of the Southwest credit cards. In the grand scheme of things, you could do a lot worse credit card wise.

I personally have had both the Southwest Rapid Rewards Plus card and the Southwest Rapid Rewards Premier card in the last year alone (mainly to earn the coveted SW Companion Pass ).

Thanks to my shiny new Companion Pass, my wife will fly for free with me whenever I fly Southwest for the next 16+ months. We actually just used this perk to spend last weekend in Cancun.

Southwest credit card cancellation

But, where the Southwest credit cards really fall short is their benefits after you earn the signup bonuses. They each only offer 1 Southwest point per $1 spent (2 points per $1 on Southwest purchases) and don’t have any ancillary perks such as priority boarding, airline status, free checked bags, etc.

And while Southwest points are great for travel on Southwest, they provide little to no value when it comes to booking other forms of travel such as hotels, rental cars, or flights to destinations not serviced by everyone’s favorite low-cost domestic airline.

The Southwest cards also have annual fees of either $69 (Southwest Plus) or $99 (Premier) – pretty steep for the small benefits you get in return.

Why You Should Be Using Chase Sapphire Preferred Instead

Okay, hopefully at this point you have placed a safe amount of distance between you and your Southwest card and she (the card) is not throwing your TV out of the window. Messy breakups are never fun.

It’s time to set you up with someone new. Someone who has everything the Southwest cards have, and a whole lot more.

Let me introduce you to my good friend, Chase Sapphire Preferred.

Southwest credit card cancellation

Chase Sapphire Preferred earns Chase Ultimate Rewards points, which are one of the most valuable loyalty currencies in the game. They can be transferred 1:1 to more than 10 different travel partners, including United, Southwest , Hyatt, and Marriott or used to book any travel directly through Chase at a value of 1.2 cents per point.

So, at the very least, every point earned with Chase Sapphire Preferred could be converted into a Southwest Rapid Rewards point. Making Sapphire, at worst, just as valuable as either of the Southwest Rapid Rewards credit cards.

But it doesn’t stop there.

Sapphire earns 2x points per dollar on all travel and dining expenses and 1 point per dollar on everything else. Compare that to Southwest’s 1 point per $1 on virtually everything (save Southwest expenses) and the two aren’t even close.

I don’t know about you, but a relatively large percentage of my monthly credit card spending goes toward dining and travel. Being in your 20s and living in New York City will do that to you.

Now to my favorite part, the Chase Sapphire Preferred is currently offering a signup bonus of 50,000 points when you spend $4,000 on purchases in the first 3 months. Those 50,000 points are worth $600+ when redeemed to book travel through the Chase Ultimate Rewards portal and potentially more when used with Chase’s travel partners.

You’ll also get an additional 5,000 bonus points (worth $60 of travel) after you add the first authorized user and make a purchase in the first 3 months.

To top it off, check out these extra perks that take Chase Sapphire Preferred way past Southwest’s cards:

  • $95 annual fee (waived first year)
  • Premium Travel Protection Benefits, including auto rental collision damage coverage, trip cancellation/trip interruption insurance, trip delay reimbursement and more
  • $0 foreign transaction fees
  • Sleek metal card design and chip-enabled for enhanced security

It’s never fun to realize that the person (or card) you’re with is not treating you well. But, with the support of your friends here at 10xT you have a new and improved lover, a card you can be proud to have in your wallet.

With Chase Sapphire Preferred at your side, it’s time to start racking up the points for your next trip!

P.S. If you would like to apply for the Chase Sapphire Preferred (and support 10xT at the same time) please do so via our credit cards page .

My name is Luke and I’m addicted to travel. I am 23, married to my high school sweetheart, and working for a startup nonprofit in NYC… needless to say, it wasn’t long ago that traveling the world was a far-off dream caught somewhere between retirement and six feet under.


southwest credit card cancellation

• • • Southwest Rewards card guest post by Lyn Mettler • • •

Last year, my family discovered the secret to flying around the country for free. We managed to visit six destinations for less than $100 per flight for my family of four with our Southwest Rewards card. I was so amazed by our ability to do this with so little effort that I want all families to know the trick to flying Southwest Airlines for free with a Southwest Rapid Rewards card. Just think of the doors you could open up and the places you can show your kids if airfare was no longer a concern!

A longtime couponer, I realized there was a way to harness that same strategy toward travel. The secret: Leveraging the Southwest Rewards card bonuses to earn a “return” in the form of miles on the money you spend every day.

Southwest credit card cancellationAren’t Credit Cards a Bad Thing?

Many of us have been trained to think credit cards are a bad thing. It’s really credit card debt that is the bad thing. If you can responsibly use credit cards to pay for everyday expenses and make sure the balance is paid entirely every month, then you can leverage them to travel free with a Southwest Rewards card.

Many banks offer travel credit cards that allow you to earn significant bonus miles after meeting the minimum required spend (usually $1000-$5000 within three months) and these are miles that can be used for free trips. You are essentially earning a “return” on the money you spend in the form of miles. You will be spending this money anyway, so why not earn free travel at the same time?

Southwest credit card cancellationThe Southwest Companion Pass

The simplest and quickest way to accomplish free travel is on Southwest Airlines via the Southwest Rewards card. They offer one of the best deals in travel called the Southwest Companion Pass that lets you fly one person free with you for up to two years. You can earn the pass by accumulating 110,000 of Southwest’s Rapid Reward points within one calendar year and those are points you can also use to book free flights. You can download my free step-by-step guide to earning the Southwest Companion Pass for complete details, but here is an overview.

Within just a few months, you can have a Companion Pass in hand that is good through the end of 2018. You can accomplish this by signing up for two of Southwest’s three Rapid Rewards credit cards. Currently, all three cards, which include two personal cards and one business card, are offering 40-50,000-point bonuses when you spend $1000-$2000 on the card within the first three months. Here are the three valid credit card offers . Each Southwest Rewards card does charge an annual fee, so consider if you feel that cost is worth it for nearly free Southwest flights. The $100 per flight we spent for the four of us does include the annual fees divided among each flight.

Southwest credit card cancellationApplying for a Southwest Credit Card

Ideally, you apply for one personal Southwest Rewards card and one Southwest business credit card. Even if you don’t own your own business, you may still qualify if you do any sort of work for which you earn a 1099 or file a Schedule C. This may include Uber driving, selling items on eBay or Etsy, craft fairs, consulting, freelance writing and more.

Be sure you only use the cards for purchases for which you have money in the bank to cover. I suggest paying down the card every few days so you do not incur debt, because if you have to pay interest, the Southwest Companion Pass is no longer a great deal.

Southwest credit card cancellation

Our family of four heads to Colorado with Southwest

In addition to earning the 40,000-50,000 bonus points for meeting each Southwest credit card’s minimum spend, you will earn 1 point per dollar on most everyday purchases. So once you have met the minimum spend on two cards, you will have earned 40,000-50,000 points on each + 2000 points on each for the $2000 minimum spend. That brings you to a total of the 93,000-104,000 out of 110,000 points you need to qualify for the Southwest Companion Pass.

You can easily earn the remaining points by continued everyday spending on the card, by flights on Southwest, by starting your online shopping at the Rapid Rewards Shopping Portal or even by subscribing to publications like the Wall Street Journal or Barron’s for $12 through Southwest and earning 700 points.

The earlier in the year you earn the Southwest companion pass, the better, as it is good from the time you earn it until the end of the following year.

Southwest credit card cancellationStretching Your Southwest Miles

Once you have the Companion Pass in hand, one of your family members, who you will designate as your “Companion,” will fly free until the end of 2018, so no points are needed to book their flights. Plus, you now have 110,000 Southwest points in the bank to use to book free travel for the rest of your family. Southwest lets you use your points to book any flight any time with no change or cancellation fees. That makes it very easy to book flights using your points unlike other airline loyalty programs that force you to search for certain fare types.

To help your Southwest Rapid Rewards points take you to as many places as possible, try to book your flights only during Southwest sales when not only the fare price, but the number of points required to book the fare, decreases. Flying on less-traveled days like Tuesdays and Wednesdays or during less busy times of year can also help your miles stretch as far as possible.

Southwest credit card cancellation

Our family in Naples, Florida thanks to our Southwest Rapid Rewards

By continuing to earn Rapid Rewards points throughout the year, we traveled to San Diego, Orlando, Fort Myers, Anaheim, Denver and New York City all for less than $100 per flight for a family of four. Keep in mind that the government does require everyone to pay a security fee of $5.60 per person per one-way flight even if you are booking the flight on rewards or the person is your designated “companion.”