Today we're starting at the end. That's because I want you to go into this process of earning a Southwest Companion Pass knowing what to do at the very end of the process. Plus a lot of you already have had a Southwest card (or still have one) and are trying to figure out what to do with it while going for the Companion Pass.

When To Close a Southwest Card for Max Value

Timing your card closure can help you (1) earn more points and (2) be ready to get another Companion Pass in a few years.

Consideration 1: Anniversary Points

Every current Southwest card gives you some anniversary points on your cardmember anniversary. These typically post to your Southwest Rapid Rewards account a few days after you get your credit card statement that also has the annual fee posted. These are only available after you have had the card a full year.

Ideally you will wait to cancel the card until you get your anniversary points.

Yes, your annual fee has posted but as long as you call within 30 days of it posting -- you will be able to get the fee refunded.

Consideration 2: Referral bonuses

If you are in "2 player mode" (Whether that's in your household or because you are teaming up with a friend to leverage referral bonuses) -- you'll want to take this into account for your strategy.

If you hold any Southwest card, you can currently refer another person to any Southwest card and earn 20,000 Rapid Rewards points if they apply and are approved. You can generate a referral here.

Side note: If you aren't going to be using a referral link from a friend/family member/etc, I really appreciate when you use my affiliate links as it directly supports my business and allows me to create free resources.

Example

I'm going to use my parents as a real life example here because they are long time holders of the Companion Pass (like us). My mom has a Companion Pass that goes through December 31, 2023. My dad is going to be the one applying for the credit cards this fall in order to earn a Companion Pass for 2024-2025 (they typically flip flop the holder of the Companion Pass).

My mom has had her SW cards since late fall 2022. She will do the following before cancelling them.

1) She will refer my dad to both the business and personal SW cards. She will earn 40,000 points this way.

2) She will wait till her annual fees post and get her 13,500 anniversary points. Then she will call within 30 days to cancel her cards and while she's on the phone she will confirm they are waiving the annual fees.

That's 53,500 points she earned for just a few clicks.

Consideration 3: Personal card restrictions

You can only hold one SW personal (ie non-business) card at a time. You are allowed to hold both business card versions. IF you want to earn a Companion Pass and currently hold a SW personal card, you have two paths to the Companion Pass

PATH ONE: You can open both business cards to earn enough points for the Companion Pass (following the timing I will lay out in future emails)

PATH TWO: You can cancel your personal card. Then after you wait 14-30 days, you can apply for the exact same card or other personal card version. Then you could also apply for 1 business card. If you're on this path, I suggest you close any SW card that you want to reapply for ASAP (taking into consideration the above about referrals and anniversary points if it works for you).

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Happy Travels,

Katie

PS: Save the Date! I will offer two live Q&As to answer all your questions. The first will be Wednesday October 11 at 12pm CST in my Facebook Group. Join here if you're not already a member. I'm still working on a date for another one but it will be an evening time and I will stream via YouTube.