Southwest Business Card

Happy Holidays All!

Updating everyone this week on the Southwest Companion Pass journey. (It has been a rocky one)

So it seems that some things have been changing and it getting a little bit more difficult to get these credit cards. Unfortunately, it seems that I was denied the Southwest Business credit card with the reasoning “Too many requests for credit or openers accounts with us.”

Based off of all the information out there we are suppose to be okay if we stayed within the rules of 5 in 24. Which is not opening 5 credit cards within the past 24 months. I have not done so, but it seems that not having my business Tax ID before applying the first time has hurt my chance of getting approved.

I am definitely disappointed it not being able to take advantage of this opportunity to obtain more bonus points that available to help reach the Southwest Companion Pass 🙁 .

I did get to reach out to some other individuals that I know have gotten this Southwest Companion Pass and it seems that they were able to obtain this pass when Chase was still allowing one individual to open multiple personal Southwest Credit Cards.

I did try to give Chase lending department a call explain the situation and after about 30 minutes, I was given further reasoning that my business was to “new” and had insufficient revenue to be approved. The representative definitely was not helpful at all and was very dodgy on most of my questions.

So moral of this story is credit cards are a good way to optimize rewards for money we are already spending but applying for them seem to be a science of its own. Banks definitely have an algorithm that is being used to approve or deny credit card applications and it seems I haven’t gotten the science of this down yet. However, I am learning and want to share my experience with everyone who is trying to explore these options as well.

My recommendations:

  • Do not apply for Business Credit Cards until you have applied for a EIN (Business Tax ID) with the IRS.
    • This seems to make the process much smoother and no request for proof of business should be needed.
    • Also, I wanted to let everyone know I have had a personal business before but just have never filed for a sole proprietorship.

With the bad news going into the holiday season, I am going to try to turn this around and look on the bright side. I will at least get the bonus points from the personal Southwest Credit Card and plan to use those points up for my expected travel and maybe try again later in the 2019 year. If that application doesn’t work again then I will probably just cancel the Chase Southwest personal credit card.

No small win this time! But definitely learning!

I hope someone can find this information to be helpful! If anyone has any other insight for myself please let me know 🙂

Southwest Companion Pass

It’s now mid December and the saga for the Southwest Companion Pass is well underway!!! Hoping for more small wins!

So, update on my progress so far:

  • I was approved for the Southwest Rapid Rewards Credit Card
  • I am close to the $1000 spend requirement for the card to receive the 40,000 bonus points
    • FYI…I had to stop the spending on it for 2 weeks to make sure the bonus points wouldn’t be awarded in the 2018 fiscal year. (Remember that the accumulation of the 110,000 points must be awarded in the same year, so in my case 2019)

One of the new challenge with obtaining the companion pass now is that, they’ve created a rule that won’t allow one person to have 2 personal Southwest credit cards. Which means, the only other option is to open the Southwest Premier Business Card. 

I tried to open the business card in early November of 2018, but was denied because I couldn’t show proof of owning a business (some of the accepted documentation was mentioned in the previous post). So, I had to go find proof, even if I already had a business. So it seemed that I needed to legitimize the things I was doing for my business in order to get approved for this card. The route I chose was to apply for a Sole Proprietorship with my county tax office, this costed me $20 and would probably help me in the long run anyways. I’ve posted the fee schedule for different applications just to help everyone visualize how inexpensive, legitimizing a home business can be.

I did not enjoy having my application denied last time so I wanted to make improve my chances even more than just having a sole proprietorship paperwork (I really hate getting denied). So, I went ahead and applied for a business tax ID [EIN] with the IRS, through the IRS website. This is actually an even easier process. If you apply for it online you will get your EIN number immediately. 

I think I’ve done all I can and let’s see how this goes. I went ahead and applied for the card again today and received a reply that they will need to review further. Worst case scenario I will at least get the bonus points from the personal card. -_- 

ChooseFI, is a great resource and one of their recent podcast essentially goes over all of this at a little higher level. If you haven’t listened to it, you should definitely check it out. 

104R | Travel Rewards | End of Year Planning

Let’s hope I can report soon that this will be another small win!!