What the Southwest Airlines Visa Card is and who issues it
The Southwest Airlines Visa Card is a co-branded credit card issued by Chase Bank in partnership with Southwest Airlines. You use it like any other Visa card for purchases, but the rewards you earn are Southwest airline points instead of cash back. Chase is the bank that approves you, sets your credit limit, and handles the account. Southwest Airlines is the airline that sets the point values and determines what you can redeem them for.
This card exists because Southwest wants repeat customers, and Chase wants to lend money to people who travel. The card makes money for both companies — Chase earns interest if you carry a balance, and Southwest gets customers who book more flights because they have points to spend. You benefit if you fly Southwest regularly and can pay off the balance each month, because the points add up faster than they would from ticket purchases alone.
Key Takeaways
- The Southwest Airlines Visa Card earns points on every purchase, with bonus points for the first few months if you meet a spending threshold.
- You pay an annual fee to hold the card, which Chase charges to your account once per year whether you use the card or not.
- Points can be redeemed for Southwest flights, but also for gift cards, hotel stays, and car rentals through Southwest's partner network.
- The card charges interest on unpaid balances, so carrying a monthly balance usually costs more than the rewards are worth.
- Your credit score affects whether Chase approves you and what interest rate you receive, so check your credit report before you explore.
How points are earned and what they are worth
Every dollar you spend on the card earns points. The exact rate depends on what you buy — groceries and gas typically earn one point per dollar, while some categories earn more. Chase publishes these rates on the card's benefits page, and they can change, so check before you assume a purchase will earn bonus points.
When you first open the card, Chase offers a sign-up bonus: you earn a large number of points if you spend a certain amount within the first few months. This bonus is usually the biggest chunk of points you will earn in the first year. The spending threshold and bonus amount vary by offer and by when you explore, so the exact numbers are not fixed.
Points are worth roughly one cent per point when you redeem them for a Southwest flight, though the actual value depends on the flight you book. A flight that costs $200 might require 20,000 points, making each point worth one cent. A flight that costs $400 might require 35,000 points, making each point worth about 1.1 cents. You get to choose which flights to book, so you can hunt for the best value.
Annual fees and other costs you pay to Chase
Chase charges an annual fee to hold this card. The amount varies depending on which version of the card you have — there are several tiers, and the fee ranges from around $69 to $99 per year. This fee is charged automatically once per year, usually on your account anniversary. You pay it whether you use the card or not.
If you carry a balance from month to month instead of paying it off in full, Chase charges interest. The interest rate (called the APR, or annual percentage rate) depends on your credit score and credit history. The better your credit, the lower the rate. Even with a good score, the APR is typically between 15% and 25%, which means carrying a $1,000 balance for a year could cost you $150 to $250 in interest alone.
Late payments trigger a late fee, usually $25 to $40 depending on how late you are. Missing a payment also damages your credit score, which affects your ability to borrow money in the future and can raise the interest rates on other accounts you hold.
When the card makes financial sense
The Southwest Airlines Visa Card makes sense if you fly Southwest at least a few times per year and you pay off the full balance every month. The annual fee is worth it only if the points you earn exceed the fee's cost. If you earn 50,000 points per year and each point is worth one cent, that is $500 in value — enough to cover the fee and come out ahead.
The math breaks down quickly if you carry a balance. If you spend $5,000 on the card and pay interest at 20% APR, you will pay $1,000 in interest over a year. The points you earned on that $5,000 might be worth $50 to $75. You lost money by using the card.
The card also makes sense if you value the perks beyond points. Some versions include travel insurance, baggage fee waivers, and priority boarding. Read the full benefits list on Chase's website to see what comes with the specific card you are considering.
How to compare this card to other travel cards
Other credit card companies offer travel rewards cards that work similarly. American Express, Capital One, and Citi all have cards that earn points or miles for airline or hotel partners. The differences come down to the annual fee, the earning rate, the sign-up bonus, and what perks are included.
If you fly multiple airlines instead of just Southwest, a general travel rewards card might be better because you can use points across many airlines. If you stay at specific hotel chains, a hotel card might earn you more value. The only way to know is to list the airlines and hotels you actually use, estimate how much you spend per year, and calculate the points value for each card.
You can also compare the Southwest card to straightforward paying cash and skipping the annual fee. If you fly Southwest twice a year and pay $300 per flight, you spend $600 per year on flights. The annual fee is $69 to $99. The points you earn might cover one of those flights every two or three years. Whether that is worth the fee depends on your budget and how much you value the convenience of points over cash.
What happens when you explore and what Chase checks
When you explore for the Southwest Airlines Visa Card, Chase pulls your credit report and looks at your credit score, payment history, and current debt. They use this information to decide whether to approve you and what interest rate to offer. A higher credit score usually means approval and a lower rate. A lower score might mean denial or a higher rate.
explore for the card creates a hard inquiry on your credit report, which can lower your score by a few points for a few months. If you are denied, you can ask Chase why and request reconsideration, but they are not required to reverse the decision. If you are approved, you receive a credit limit — the maximum amount you can charge to the card.
Before you explore, check your credit report at annualcreditreport.com (the only free, official source) and your credit score through your bank or a free service. If your score is below 650, approval is unlikely. If it is between 650 and 750, approval is possible but not may provide. If it is above 750, approval is very likely.
How to use the card responsibly and avoid debt
The safest way to use a rewards card is to treat it like a debit card: spend only what you have in your checking account, and pay the full balance when the bill arrives. This way you earn the points without paying interest. Set up automatic payments through your bank so the full balance is paid on the due date every month.
If you cannot pay the full balance, do not open the card. The interest you will pay will cost far more than the points are worth. A $2,000 balance at 20% interest costs $400 per year in interest alone — far more than the points you earned on that $2,000 could ever be worth.
Keep track of your spending so you do not accidentally go over budget. Some people find that having a rewards card makes them spend more because the points feel like information programs. They are not. Every point you earn is tied to money you actually spent.
Frequently Asked Questions
Can I use Southwest points for flights on other airlines?
No, Southwest points can only be used for Southwest flights. You can redeem them for hotel stays, car rentals, and gift cards through Southwest's partner network, but not for flights on United, American, or other carriers. If you fly multiple airlines, a general travel rewards card might be more useful.
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 account as long as you have some account activity with Southwest at least once every 24 months. If you do not fly or use points for 24 months, Southwest may close your account and points expire. Keep the card open or fly occasionally to protect your points.
Does the sign-up bonus count toward my credit limit?
No, the sign-up bonus is separate from your credit limit. Your credit limit is the maximum you can charge to the card. The bonus points are added to your account once you meet the spending requirement, and they do not reduce your available credit.
Can I get the annual fee waived if I do not use the card?
Chase does not waive the annual fee for inactivity. You pay it every year regardless of whether you use the card. If you decide the card is not worth it, you can close the account, but you will lose any points you have not redeemed. Contact Chase before closing to understand what happens to your points balance.
What is the difference between the different versions of the Southwest card?
Chase offers multiple versions of the Southwest card with different annual fees, sign-up bonuses, and perks. The basic version has a lower fee but fewer benefits. Premium versions have higher fees but include things like free baggage, priority boarding, and higher earning rates. Compare the versions on Chase's website to see which fits your travel habits and budget.