Recently, we discussed the best credit cards to use to earn Southwest Rapid Rewards on ongoing spend (hint: it's not a Southwest credit card). The fastest way to earn Rapid Rewards is through credit card sign up bonuses. If you really need Rapid Rewards quickly, you can top off your account from Chase Ultimate Rewards or you can purchase miles. Today, Southwest announced a promotion of up to 45% off when buying miles. Let's take a quick look at this offer.
The Promotion
Southwest announced a promotion when buying miles.
- You can buy 2,000-9,000 points and receive a 25% discount
- You can buy 10,000-14,000 points and receive a 35% discount
- You can buy 15,000+ points and receive a 45% discount
Initially, a 45% discount sounds really good. But is it worth considering?
Our Analysis
To receive the maximum 45% discount, you must purchase 15,000+ miles. 15,000 miles costs $226.88, or 1.51 cents per point. As we have mentioned before, Southwest Rapid Rewards miles have a fixed redemption value of 1.5 cents each. Even with a 45% “discount,” you pay more for miles than they're worth! Plus, buy buying miles instead of using the cash for the flights, you give up earning points (a minimum of 6x per dollar) and having those flights count towards companion pass and A-List or A-List Preferred.
In our opinion, you should never consider buying Southwest Rapid Rewards miles unless the discount is 55% or more.
Final Thoughts
While we would never tell you to “never buy miles,” as there are times when it definitely makes sense to do so, this promotion just doesn't make any sense for anyone. At best, you overpay for miles by 0.1 cents per point and you lose all earning potential on those flights. If you need more Southwest Rapid Rewards, consider transferring Chase Ultimate Rewards to your Southwest account and/or applying for a new Southwest or Ultimate Rewards card. As always, please let us know your thoughts and opinions in our Facebook group.
