The easiest way to earn points in loyalty programs is often through credit card sign-up bonuses, and we take advantage of this by signing up for a few cards each year. While we often focus on meeting spending requirements to earn those bonuses, there are times when we’re not working towards a specific goal. In those cases, I maximize our return on every dollar by using cards that earn the most points or rewards per category, like groceries, gas, utilities, and other everyday expenses.
Recent Spending Requirements Met
I’ve just completed the $15,000 spending requirement on the Hilton Surpass AMEX to earn a free night certificate and have nearly reached Silver status with Bilt Rewards by spending $10,000. Since we’re between major spending requirements, I’m considering where to put the rest of our expenses until we sign up for a new card or begin working on yearly spending goals for 2025.
New Southwest Priority Card Offer
I recently received a new offer from Southwest Airlines on my Priority Card, which has me thinking about its potential value. Many spending offers aren’t compelling, but this one could be useful: spend at least $3,000 between November 1, 2024, and January 31, 2025, and you’ll earn a 30% bonus on Rapid Rewards points, up to 20,000 bonus points. Unlike other offers, this one applies the 30% bonus to the total amount spent. Additionally, the bonus points will count toward qualifying for the Southwest Companion Pass in 2025, which is a highly valuable perk for frequent Southwest flyers.
Valuing the Southwest Promotion
Based on our redemption history, I value Southwest Rapid Rewards points at around 1.3 to 1.4 cents each. With the 30% bonus, the return on spending with the Southwest Priority Card increases to approximately 1.8 cents per dollar, which is a solid return, especially with the potential to qualify for the Companion Pass.
Comparing Other Options: Citi Double Cash and Chase Freedom Unlimited
While the Southwest offer is attractive, there are other cards I could use instead:
- Citi Double Cash: This card offers an effective 2% back on all purchases in the form of Citi ThankYou points (when paired with a Citi card that allows point transfers). These points can be redeemed for cash or transferred to travel partners, offering a reliable return.
- Chase Freedom Unlimited: This card provides 1.5% back in Ultimate Rewards points on all purchases. Paired with a premium Chase card like the Chase Sapphire Preferred or Reserve, these points can be transferred to Chase’s travel partners, including Southwest. Through the Chase travel portal, I can get a 1.25x to 1.5x boost (depending on which premium card I have), translating to an effective return of 1.9% to 2.25% on everyday purchases.
Weighing My Options
The 30% bonus on the Southwest Priority Card is tempting, especially with the points counting towards qualifying for the Companion Pass. However, the Companion Pass isn’t worthwhile for us to focus on earning. For a straightforward cash return, however, the Citi Double Cash’s consistent 2% is hard to beat, while the Freedom Unlimited offers flexible, long-term travel value if we’re looking to build up Chase points.
Final Thoughts
After weighing my options, I’ve decided to pass on the Southwest Priority Card offer. Although the 30% bonus and the potential to qualify for the Companion Pass in 2025 are attractive perks, the Companion Pass itself doesn’t align with our travels. While it’s great for frequent Southwest flyers who consistently fly together, we’re free agents and use multiple airlines, so we wouldn’t get the full value out of the pass.
Instead, I’ll use the Chase Freedom Unlimited. I can transfer points to Southwest if we fly with them, but I retain the flexibility to use them for other travel partners or through the Chase travel portal. This approach maximizes our redemption options, allowing us to make the most of our points without being locked into Southwest.
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