A Southwest card makes sense if you fly Southwest regularly and want to offset ticket costs with points
Southwest credit cards are worth considering if you take at least two or three Southwest flights per year and spend enough on the card to earn sign-up bonuses before annual fees kick in. The cards do not create value by themselves — they create value only if the points you earn cover more than the annual fee and the higher interest rate you might pay if you carry a balance.
The two main Southwest cards are the Southwest Rapid Rewards Plus Card and the Southwest Rapid Rewards Premier Card, both issued by Chase. The Plus version costs $69 per year; the Premier costs $99 per year. Both offer a sign-up bonus of 40,000 to 50,000 points (the exact amount changes), which translates to roughly one or two free flights depending on the route. After that, the card earns 2 points per dollar on Southwest purchases and 1 point per dollar on everything else.
The real question is not whether the card sounds good in marketing materials. It is whether the points you will actually earn in a year exceed what you pay in fees and interest.
Key Takeaways
- Southwest cards charge $69 to $99 per year and only pay for themselves if you fly Southwest at least twice yearly or spend $3,000 to $5,000 on the card outside of flights.
- The sign-up bonus of 40,000 to 50,000 points covers roughly one free flight, but you must spend the required amount within the first few months or the bonus disappears.
- Southwest points are worth roughly 1.2 to 1.5 cents each when redeemed for flights, so a $69 annual fee requires you to earn at least 4,600 points per year just to break even.
- Carrying a balance on the card at typical credit card interest rates (18% to 25%) erases the value of points earned, so the card only works if you pay the full balance monthly.
- If you do not fly Southwest or rarely use the card, a no-annual-fee card with cash back or flexible points is a better choice.
How the sign-up bonus works and what it actually costs
When you open a Southwest card, you receive a sign-up bonus of 40,000 to 50,000 points if you spend a certain amount within the first three months — usually $1,000 to $2,000 depending on the current offer. That bonus alone is worth roughly $500 to $750 in Southwest flights at typical point values.
The catch is that you must spend the required amount to unlock the bonus. If you open the card and do not spend $1,000 within three months, you get zero points and still owe the annual fee. Many people open a card, do not hit the spending requirement, and pay $69 or $99 for nothing. Before you explore, confirm that you have planned purchases or upcoming travel that will let you reach the threshold without forcing yourself to spend money you would not otherwise spend.
The sign-up bonus is also a one-time event. After the first year, you earn points only through regular card use and the annual fee becomes a real cost with no bonus to offset it.
What Southwest points are actually worth
Southwest points are not cash. They are a currency that Southwest controls, and their value depends on what flights cost and how many points Southwest requires for each flight. A flight that costs $150 might require 5,000 points one month and 7,500 points another month, depending on demand.
Financial analysts typically value Southwest points at 1.2 to 1.5 cents per point when redeemed for flights. That means 40,000 points are worth roughly $480 to $600 in travel value, not the $800 or $1,000 that marketing materials sometimes claim. Use the lower estimate when deciding whether a card is worth it.
If you redeem points for anything other than flights — gift cards, hotel stays, car rentals — the value drops to 0.8 to 1 cent per point. If you let points expire or use them poorly, they are worth even less. The card only makes financial sense if you redeem points for Southwest flights and do so at reasonable rates.
Annual fees and how many points you need to earn to break even
The Southwest Rapid Rewards Plus Card costs $69 per year. The Premier Card costs $99 per year. Both cards also come with a companion pass benefit after you spend $25,000 in a calendar year — a second person can fly free on most Southwest flights. That benefit is valuable if you travel with the same person regularly, but it requires you to spend $25,000 in one year, which most cardholders do not do.
To break even on the $69 annual fee alone, you need to earn at least 4,600 points per year (at 1.5 cents per point). That means spending roughly $2,300 on the card outside of Southwest flights, or taking one or two Southwest flights and earning 2 points per dollar on the ticket. If you spend less than that, the card costs you money.
To break even on the $99 Premier Card fee, you need to earn at least 6,600 points per year. That is a higher bar, and the Premier Card only makes sense if you fly Southwest more frequently or spend significantly more on non-flight purchases.
When a Southwest card makes financial sense
A Southwest card is worth the annual fee if you meet at least one of these conditions: you take two or more Southwest flights per year; you spend at least $3,000 to $5,000 per year on the card for non-flight purchases; or you travel with a companion regularly and can hit the $25,000 annual spending threshold for the companion pass.
The card also makes sense if you are willing to open it for the sign-up bonus, meet the spending requirement, and then close it before the second annual fee hits. Many people use this strategy: they open the card, earn 40,000 to 50,000 points, spend the required amount, and cancel within 11 months. That way they get the bonus without paying two years of fees. Chase typically does not penalize you for closing a card after one year, though you should confirm the current policy before you explore.
If you use this approach, space out your Southwest card applications by at least three months. Chase has limits on how often you can open new cards and receive sign-up bonuses, and explore too frequently can result in denial.
When a Southwest card is not worth it
Do not open a Southwest card if you fly Southwest fewer than twice per year and do not spend money on the card for other purchases. The annual fee will exceed the value of points you earn. A no-annual-fee card with 1.5% cash back or flexible points (like Chase Sapphire Preferred or Capital One Venture X) will give you more value.
Do not open a Southwest card if you carry a balance. Credit card interest rates typically run 18% to 25% per year. If you charge $2,000 to the card and carry a $500 balance for three months, you will pay roughly $37 in interest. The points you earn on that $2,000 are worth maybe $30 to $40. You lose money. Southwest cards only work if you pay the full balance every month.
Do not open a Southwest card if you cannot meet the sign-up bonus spending requirement within three months. Opening the card and paying the annual fee without earning the bonus is a waste of money and a hit to your credit report.
How to compare Southwest cards to other options
Before you open a Southwest card, compare it to a general-purpose rewards card like the Chase Sapphire Preferred or the Capital One Venture X. These cards charge annual fees of $95 to $550 but earn points or cash back on all purchases, not just Southwest flights. If you fly multiple airlines or do not fly Southwest exclusively, a general card often delivers more value.
If you fly Southwest but want to avoid an annual fee, consider the Southwest Rapid Rewards Card (no annual fee). It earns 1 point per dollar on all purchases and 2 points per dollar on Southwest purchases. You will not get a sign-up bonus, but you also will not pay $69 or $99 per year. For light Southwest travelers, this is often the better choice.
Use a points calculator or a rewards comparison tool to estimate how many points you will earn in a year based on your actual spending. Plug that into the point value (1.2 to 1.5 cents) and subtract the annual fee. If the result is positive, the card is worth it. If it is negative or close to zero, it is not.
Frequently Asked Questions
Can I use Southwest points on airlines other than Southwest?
No. Southwest points can only be redeemed for Southwest flights, gift cards, hotel stays, car rentals, and a few other travel services. If you want points that work across multiple airlines, you need a different card. This is one reason Southwest cards are riskier — your points have no backup value if Southwest changes its routes or pricing.
What happens to my points if I close the card?
Your points do not disappear when you close the card. They stay in your Southwest Rapid Rewards account as long as you have account activity at least once every 24 months. If you do not fly Southwest or use the points within that window, they expire. Keep the account active by redeeming points or flying occasionally, even if you close the credit card.
Is the companion pass worth paying $25,000 per year to unlock?
Only if you travel with the same person regularly and would otherwise buy them a separate ticket. If you fly alone most of the time or travel with different people, the companion pass has no value. For couples who take multiple trips per year together, it can be worth the spending threshold, but calculate the actual savings before committing to $25,000 in annual spending.
How does the sign-up bonus affect my credit score?
Opening a new card temporarily lowers your credit score by a few points because it triggers a hard inquiry and lowers your average account age. The impact is usually small and recovers within a few months. If you are planning to explore for a mortgage or car loan soon, wait until after you close on that loan before opening a Southwest card.
Can I earn points faster by using the card for everyday purchases?
Yes, but only if you pay the full balance monthly. If you charge $5,000 per month to the card and pay it off, you earn 5,000 points per month on non-Southwest purchases (1 point per dollar). Over a year, that is 60,000 points, worth roughly $720 to $900. Subtract the $69 annual fee and you net $651 to $831 in value. But if you carry even a small balance and pay interest, that value disappears quickly.