The Southwest card makes sense if you fly Southwest regularly and want to offset ticket costs—but only if you'll use the rewards enough to cover the annual fee
The Southwest Rapid Rewards card comes with an annual fee (currently $69 for the standard version, higher for premium versions) and offers points on every purchase. The real question is whether the points you earn will be worth more than what you pay to hold the card. For someone who flies Southwest once a year on vacation, the answer is usually no. For someone who takes four or more Southwest trips annually, or who puts most everyday spending on the card, the math often works.
The card's main benefit is that Southwest points can be redeemed for flights with no blackout dates—meaning you can book peak travel times that other airline cards won't let you touch. That flexibility has real value, but only if you actually take the trips. A card earning points you never redeem is just an annual fee with nothing to show for it.
Key Takeaways
- The $69 annual fee means you need to earn at least $69 worth of flights or other rewards each year just to break even.
- Southwest points have no blackout dates, so you can book holiday and summer travel that other airline rewards programs block.
- The card pays a sign-up bonus (typically 40,000 to 60,000 points) that covers several free flights, but this bonus comes only once.
- Everyday purchases earn 1 point per dollar, and Southwest flights booked with the card earn 3 points per dollar—the card pays for itself fastest if you use it for both flights and regular spending.
- Southwest's limited route network means the card is only useful if Southwest actually flies where you need to go.
How the sign-up bonus works and what it's actually worth
When you open a Southwest card, you typically receive 40,000 to 60,000 bonus points (the exact amount changes by offer). Southwest prices flights in points, not dollars, and the point cost varies by route and demand. A short domestic flight might cost 6,000 to 8,000 points; a longer cross-country flight might cost 15,000 to 25,000 points.
A 50,000-point bonus could cover two or three round-trip flights depending on distance and when you book. That bonus alone can be worth $300 to $600 in ticket value. However, you only get this bonus once per card, and you typically have to meet a spending requirement (usually $2,000 to $3,000 in the first three months) to unlock it. If you can't spend that much naturally, the bonus becomes harder to reach.
The sign-up bonus is the card's biggest one-time payout. After that, the card's value depends entirely on whether you fly Southwest enough and spend enough on the card to earn points that exceed the annual fee.
When the annual fee actually pays for itself
The $69 annual fee is a real cost you pay whether you use the card or not. To justify keeping it, you need to earn at least $69 worth of value from the rewards. Here's how that breaks down in practice:
If you book one Southwest flight per year on the card, you earn 3 points per dollar spent. A $300 flight booked with the card generates 900 points. At typical redemption rates, that's worth roughly $30 to $45 in ticket value—not enough to cover the fee. If you book two $300 flights per year on the card, you're earning roughly $60 to $90 in rewards value, which gets closer. If you also put everyday spending on the card (groceries, gas, restaurants), you earn 1 point per dollar on those purchases, which adds up over time.
The card pays for itself most clearly if you: fly Southwest at least three to four times per year, or book one or two flights and put $5,000 to $10,000 in annual everyday spending on the card. If neither of those describes you, the annual fee is likely a net loss.
The real value of no blackout dates
Most airline credit cards come with a catch: certain flights, especially during peak travel times, are off-limits to rewards redemptions. Southwest's points have no blackout dates. You can book Christmas week, Thanksgiving, spring break, or summer vacation using points at the same rate as an off-season Tuesday flight.
This matters because peak travel is when flights cost the most in cash. A flight that costs $400 in December might cost $150 in February. If you can redeem points for the expensive flight, you're getting more value per point. If you're forced to book off-peak travel with rewards, you're getting less.
However, this advantage only matters if you actually want to travel during peak times and if Southwest flies your route. If you're flexible about when you travel, or if you fly routes where Southwest doesn't operate, this benefit doesn't explore to you.
What to check before you open the card
Before explore, verify that Southwest actually serves the airports you use. Southwest's network is strong in the western and central United States and between major cities, but it has limited or no service in some regions and doesn't fly internationally. If your home airport or your frequent destinations aren't on Southwest's route map, the card has no practical value.
Also check the current sign-up bonus and spending requirement. These change frequently, and a higher bonus or lower spending threshold makes the card more attractive. You can find the current offer on Southwest's website or through credit card comparison sites.
Finally, look at your credit score. The Southwest card typically requires good to excellent credit (usually 670 or higher). If your score is lower, you may not be approved, or you may be offered less favorable terms.
Comparing the Southwest card to other airline cards
Other airline credit cards work differently. Some charge higher annual fees but offer more generous sign-up bonuses or additional perks like free checked bags or priority boarding. Others charge lower fees but have stricter blackout dates or earn points more slowly.
The choice depends on which airline you fly most often. If you're loyal to United or American, their cards may offer better value. If you fly multiple airlines equally, a general travel rewards card (which earns points redeemable across many airlines) might be smarter than locking into one airline.
Southwest's card stands out specifically because of the no-blackout-dates policy and because Southwest doesn't charge for the first two checked bags (a benefit that applies whether you use the card or not). If those features match your travel style, the Southwest card is worth considering. If not, a different card might serve you better.
How to know if you should cancel the card
If you've held the Southwest card for a year or more, you can tell whether it's paying for itself. Look at how many points you've earned and redeemed, and whether the value of those rewards exceeded the annual fee. If you earned 10,000 points and redeemed them for a $50 flight, but paid $69 in fees, you lost money.
You should also consider whether your travel plans are changing. If you're moving, changing jobs, or shifting to a different airline, the card's value may drop. Canceling the card stops the annual fee from charging again, though you lose any remaining points balance (most cards don't let you transfer points after cancellation).
If you decide to cancel, do it before the annual fee posts for the next year. Most card issuers charge the fee on the anniversary of your account opening, so you have a window to cancel without paying it again.
Frequently Asked Questions
Can I use Southwest points for anything other than flights?
Southwest points can be redeemed for flights, hotel stays, car rentals, and gift cards through Southwest's partners. However, the point value is usually best when redeemed for flights. Hotel and car redemptions typically give you less value per point than booking those services with cash and saving your points for flights.
What happens to my points if I cancel the card?
Your points stay in your Southwest account and don't disappear when you cancel the card. However, Southwest will close your Rapid Rewards account if you don't have any activity (flights, points transfers, or credit card spending) for 24 months. To keep your points, you need to maintain some connection to Southwest.
Is the premium Southwest card worth the higher annual fee?
Southwest offers a premium version with a higher annual fee (currently $99) that includes additional perks like a free checked bag, priority boarding, and a higher sign-up bonus. It's worth it only if you fly Southwest frequently enough to use those perks. For most occasional flyers, the standard $69 card is the better choice.
Do I have to spend money on Southwest flights to earn enough points to cover the fee?
No. You earn 1 point per dollar on all purchases (groceries, gas, restaurants, utilities), not just flights. If you put $7,000 in annual everyday spending on the card, you earn 7,000 points, which is worth roughly $35 to $50 in flight value. Combined with points from booking flights, this can easily cover the $69 fee.
What if I don't fly Southwest but want airline rewards?
If you fly a different airline most often, that airline's card will likely serve you better. If you fly multiple airlines, a general travel rewards card (like the Chase Sapphire Preferred or American Express Gold) earns points that work across many airlines and may be more flexible than locking into one airline's card.