Southwest Airlines, in collaboration with Chase, has recently introduced an enticing welcome offer for its co-branded credit cards. For a limited period, you can acquire both the coveted Companion Pass (valid until February 2025) and 30,000 bonus points upon spending $4,000 within the initial three months.
This isn't the first instance where Southwest Airlines has rolled out such an appealing promotion. I seized a similar opportunity just last year, resulting in savings exceeding $600 on my summer travel expenses.
Let's delve into how I capitalized on this offer and how a Southwest travel credit card can potentially yield comparable savings for you this year.
Southwest Rapid Rewards® Plus Credit Card Welcome offer - Earn Companion Pass (through Feb. 28, 2025) and 30,000 Rapid Rewards points after spending $4,000 within the first 3 months. Annual fee $69.
Southwest Rapid Rewards® Premier Credit Card Welcome offer: Earn Companion Pass (through Feb. 28, 2025) and 30,000 Rapid Rewards points after spending $4,000 within the first 3 months
Southwest Rapid Rewards® Priority Credit Card Welcome offer: Earn Companion Pass (through Feb. 28, 2025) and 30,000 Rapid Rewards points after spending $4,000 within the first 3 months
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When Southwest announced its Companion Pass offer last year, my partner and I were already saving up for our summer vacation. Based in New York City, we had plans to attend a wedding in Denver and then spend a few days in Portland, Oregon before heading back home.
With our trip scheduled for June, I had a brief timeframe to both qualify for the offer and book our flights ahead of time to avoid any potential last-minute price hikes.
Though we typically keep our finances separate, my partner and I decided to pool our efforts to meet the spending requirement. I applied for the card and added him as an authorized user on the account.
Over the next couple of weeks, we charged all of our usual expenses to the card, ensuring to clear the balances before they were due. This encompassed everything from our weekly groceries to dining out, subway fares, Uber rides, and even a new pair of sneakers.
Given that it was tax season, we also decided to put a portion of our federal taxes owed onto the card. While this isn't always advisable due to the associated fees, it made sense for us as we were working towards a bonus.
In less than two months, we successfully met the welcome offer criteria. This meant we had accumulated over 30,000 Southwest Rapid Rewards points and secured a Companion Pass when it came time to book our flights.
As a personal finance expert, let's dive into our flight booking experience and savings with the Southwest credit card offer.
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Flight Booking Details
In March, I arranged two one-way flights for two individuals: one from New York City to Denver and another from Denver to Portland, Oregon (our return flight was already booked).
In total, we redeemed 26,805 Rapid Rewards points and paid just $11.20 each for taxes and fees. Thus, our cash outlay was merely $22.40 for the entire journey. Not too shabby for a cross-country trip!
But how much did we actually save?
While I can't provide the exact dollar value of our flights, this year's equivalent itinerary presently costs $347.97, with a similar points value.
Keep in mind, this figure represents the price for just one ticket, not the two we secured. Without factoring in the Companion Pass bonus, the real expense for both tickets would be roughly double, totaling $695.94. So, considering direct cash payments, we saved approximately $673.54. Even when factoring in the $69 Rapid Rewards Plus card annual fee, our net savings still amount to $604.54.
Tips for Earning the Companion Pass Welcome Offer
Undoubtedly, we spent more than $600 to qualify for this welcome offer initially. However, the crucial aspect was that we only made purchases we had already planned, irrespective of the new card. With that in mind, here are some recommendations for anyone contemplating the current Southwest credit card offer:
Fly Southwest frequently: While having the Companion Pass for the rest of the year was beneficial, we found limited opportunities to use it after our major trip. While Southwest Airlines is excellent for certain U.S. travel routes, it may not always align with everyone's travel plans. Consequently, we couldn't renew our Companion Pass for 2024.
Understand the risks: Combining two cards under one user account allowed us to pool our resources and meet the spending requirement promptly. If you opt for a similar approach, ensure responsible card usage. Timely payments and maintaining a low credit utilization can bolster credit scores and prevent negative impacts on credit history.
Assess your budget: Before opening any new card account, verify that the spending requirement fits within your budget. If fulfilling the welcome offer necessitates overspending and accruing a high-interest balance, it's likely to outweigh the savings in the long run.
Source: finance.yahoo.com | by Kendall Little
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