Easiest Way Ever to Get the Southwest Companion Pass; But Is It a Good Deal?

As widely reported by travel bloggers, Southwest is offering an unprecedented signup bonus on the personal versions of the Southwest credit card. Specifically, from now through February 11, you can earn 30,000 Southwest miles and the Companion Pass by opening just one credit card.

The Southwest Companion Pass is arguably the best deal in travel. It allows a companion to fly for free with you on any Southwest flights you book. This version of the pass is good from the time you earn it until the end of 2019.

Knowing that I love the Companion Pass, a reader reached out to ask my thoughts.

Although it has never been possible in the past to earn the Companion Pass with such ease, is it a good deal? That depends. For some, it’s a terrific deal. For others, it’s not. Here’s how to decide if it’s a good deal for you:

The Value of 30,000 Points = $480

Once you spend $4,000 in 3 months on any of the three versions of the Southwest personal cards—Plus, Premier, or Priority—you’ll earn (in addition to the Companion Pass) 30,000 Southwest miles.

Southwest miles are worth about 1.6 cents apiece. So, the 30,000 miles are worth about $480. That’s a decent haul, but not amazing without taking into account the value of the Companion Pass.

The Value of the Companion Pass = It Depends ($0-$480+)

Things get interesting with this signup bonus depending on how often you use the Companion Pass to enable someone to travel with you for free.

If you don’t use the Companion Pass, it’s obviously worthless. If you use it to add a companion to the flights for which you redeem your 30,000 signup bonus points, then the pass would be worth $480. That would make the signup bonus worth $960, which is quite good.

If you use the Companion Pass even more often, it’s value can skyrocket. Probably the best use of the Southwest Companion Pass I’m aware of occurred in the case of my buddy and his wife before they had kids. My friend traveled often for work, and his wife worked remotely for her company. So almost any time my friend had to travel, he booked on Southwest, and his wife joined him on the trip for free. In such a case, the pass could be worth thousands of dollars. In that rare use case, the current signup bonus on any of the Southwest personal cards would be among the highest signup bonus available on any credit card.

Here’s How to Decide if This is a Good Deal for You:

This is a Terrible Deal If. . . .

• Chase 5/24
  If you’ve opened 5 or more personal credit cards (and some business cards) with any bank in the past 24 months, Chase won’t approve you for the Southwest card. In that case, this deal is a nonstarter for you.
  
  
• Otherwise Ineligible
  You are also ineligible for the signup bonus on a new Southwest personal card if (1) you already have any of the personal versions of the Southwest card or (2) you received a new cardmember bonus on any of the personal versions of the Southwest card within the last 24 months.

This is a Bad Deal If. . . .

• You are an Advanced Miles and Points Enthusiast with a Business.
  If you own a business, there is a better way to earn a more robust version of the Companion Pass. Specifically, you can open the Southwest business card, earning its 60,000-point signup bonus. You can then open a 50,000-point version of the Southwest personal card. By earning 110,000 points within one calendar year, you will be awarded a version of the Companion Pass that is valid for all of the year in which you earn the pass as well as all of the following calendar year.

This is a Mediocre Deal If. . . .

• You Aren’t Likely to Use the Companion Pass.
  If you aren’t likely to get much use out of the Companion Pass, then this is basically just a 30,000-point signup bonus, which isn’t great. You’d be better off opening a 50,000-point version of the Southwest personal card that does not include the Companion Pass.

This is a Good Deal If. . . .

• You aren’t a Credit Card Churner and You Plan to Use the Companion Pass
  Most normal people—I’m certainly excluding myself here—don’t open multiple credit cards per year. If you are “normal” in that sense, then this is a fine offer, provided you plan to use the Companion Pass a fair bit.

This is a Great Deal If. . . .

• You aren’t a Credit Card Churner and Plan to Use the Companion Pass a Lot
  If you wouldn’t earn the Companion Pass without taking advantage of an opportunity like this one, and if you are able to use the Companion Pass a lot, this is a great deal, one of the best credit card deals available.
  
  
• You Want a Free Trip to Hawaii for Two People this Year
  Southwest will almost certainly begin service to Hawaii this year. Given that you can fly roundtrip between the continental US and Mexico for under 34,000 Southwest miles, there’s a good chance you’ll be able to fly roundtrip between the continental US and Hawaii for under 34,000 miles, which is how many miles you’ll have after spending $4,000 on the card and earning the 30,000-point signup bonus. It isn’t unprecedented for two people to be able to fly roundtrip to Hawaii for free on the strength of just one credit card signup, but it is somewhat rare. Plus, finding available award seats on Southwest is characteristically easier than doing so on other airlines.

Hawaii

FamilyinHawaii1

HotelDelCoronado1

Conclusion

My wife and/or I have held a Southwest Companion pass every year since 2013. Those passes have saved our family tons on travel.

For that reason, I’m thrilled to see Chase and Southwest get creative with offers that enable folks to earn the Companion Pass more easily.

That said, whether these offers are a good deal depends. They are a good deal if (1) you wouldn’t earn the Companion Pass any other way and (2) you would use the Companion Pass a lot were you to earn it through one of these signup bonuses.

Question: Are the new Southwest offers a good deal for you? You can leave a comment by clicking here.

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