We know by now that there are always little credit card offers that hotels and airlines like to offer you as you go through the reservation process. Yesterday as I was going through a Southwest reservation, I noticed a credit card offer that I had not seen before. Maybe I just wasn’t that observant or maybe this is a newer offer, I’m not sure. But, let’s break it down.
Southwest Credit Card Offer Of $200 and 10,000 Points
There are two main offers on the Chase Southwest Premier card – one is for 25,000 Rapid Reward points and one is for 50,000 Rapid Reward points. The 50,000 point offer comes around often enough that there is really no reason to go for the 25,000 point offer. Not only that, but you are able to get the bonus again if it has been at least 24 months since you previously received it (and you are not currently holding the card when you apply for the new one).
So, with those two cards, it is a no-brainer – go for the 50,000 point offer when it is available (like it is now – see here). But, what about this offer? Receive a $200 statement credit after first purchase and 10,000 points after spending $500 in 90 days (application link).
The card is the same – the Southwest Airlines Rapid Rewards Premier card – but the offer is much different from the normal ones. Instead of receiving all points, you will receive a large statement credit and points. Is it a good deal?
Good Deal Or No?
Let’s break it down. To help with it, we look at the value of points at 1.6 cents each (which is higher than what Southwest says, but their valuation does not take the taxes into account). For the field “Value of Bonus,” I am subtracting the annual fee since it is paid up front.
|Sign Up Bonus||Statement Credit||Required Minimum Spending||Annual Fee||Value of Bonus|
|50,000 Points||N/A||$2,000 in 90 days||$99||$701|
|25,000 Points||N/A||$2,000 in 90 days||$99||$301|
|10,000 Points||$200||$500 in 90 days||$99||$261|
So, we can see that this offer is actually the worst of the offers for the Premier version of the card. The only way it would provide greater value, and only slightly, would be if someone was applying for the 25,000 point offer to change them for redemptions that only valued the points at 1 cent each (like gift cards or international flights). The only other positive is that this card offer only requires $500 in spending. Otherwise, make sure you skip the offer of the card at checkout!
If it weren’t for the leveraging of the annual fee up front, this card offer would actually be very interesting for people who like the Chase Freedom offer for cash back. But, with the annual fee, the offer is significantly reduced.
Editorial Note - Opinions expressed here are author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
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