The Southwest card makes sense if you fly Southwest regularly and want to offset ticket costs with points

A Southwest credit card is worth it if you take at least two or three Southwest flights per year and spend enough on the card to earn back the annual fee in rewards. The card's main benefit is earning points on every purchase — points that convert directly to free flights or seat upgrades. But the annual fee (typically $69 to $99, depending on the card version) means you need to use it enough to break even. If you fly Southwest once a year or less, or if you rarely use credit cards, the math doesn't work.

The real question isn't whether Southwest points are valuable — they are, because they buy actual flights. The question is whether you'll use the card enough to make the annual fee disappear into your rewards. That depends on your spending habits and travel frequency, not on the card's marketing.

Key Takeaways

  • Southwest cards charge an annual fee of $69 to $99, which you recover only if you earn enough points through spending and bonuses to offset it.
  • The sign-up bonus (typically 40,000 to 75,000 points) is the biggest when ready value, worth roughly $500 to $1,000 in Southwest flights depending on current point values.
  • You earn points on every dollar spent, but the earning rate (usually 1 to 2 points per dollar) means you need to spend $3,000 to $5,000 annually just to cover the fee in rewards.
  • Southwest points never expire as long as you have account activity at least once per year, so unused points don't vanish like some airline programs.
  • The card's value drops sharply if you don't fly Southwest, use other airlines, or can't meet the annual spending threshold through normal purchases.

How the sign-up bonus works and what it's actually worth

When you open a Southwest card, you receive a sign-up bonus of points — usually between 40,000 and 75,000 depending on which card version you choose and current promotions. This bonus is the single largest source of value from the card. A 50,000-point bonus, for example, covers most or all of a round-trip domestic flight for one person on Southwest.

The catch is that sign-up bonuses come with a spending requirement. You typically need to spend $1,000 to $3,000 within the first three months to unlock the bonus. If you can't or won't spend that much in normal purchases, you won't receive the bonus at all. Some people meet this requirement by timing a large purchase (a flight, a car repair, a home improvement project) to coincide with opening the card. Others spread smaller purchases across the three-month window. Either way, the bonus only materializes if you hit the spending target.

The annual fee and how much spending you need to justify it

Southwest cards charge between $69 and $99 per year, depending on which version you hold. This fee hits your account every year on your card anniversary, whether you use the card or not. To make the card worth keeping, you need to earn enough points through regular spending to cover this fee in value.

Here's the math: if your card earns 1 point per dollar spent and Southwest points are worth roughly 1.3 to 1.5 cents each (a typical valuation), you need to spend about $4,600 to $7,200 per year just to earn back a $69 fee. If you spend less than that on the card, you're paying money to hold it. Some versions of the Southwest card offer bonus categories (like 2 points per dollar on Southwest purchases or dining), which can lower the spending threshold, but only if you actually use those categories.

The annual fee is non-negotiable — Southwest doesn't waive it after the first year, and you can't negotiate it down. If you decide the card isn't worth it, you close the account and stop paying. There's no penalty for closing a credit card, though closing it does affect your credit score slightly by reducing your available credit and increasing your credit utilization ratio.

Comparing the different Southwest card versions

Southwest offers multiple credit card versions through Chase, and they differ in annual fee, earning rates, and perks. The most common are the Southwest Rapid Rewards Plus Card ($69 annual fee) and the Southwest Rapid Rewards Premier Card ($99 annual fee). A third version, the Southwest Rapid Rewards Business Card, is designed for business owners and has its own fee structure.

The higher-fee card typically offers better earning rates or additional perks — for example, a higher sign-up bonus or extra points on certain purchases. Before opening any version, compare the sign-up bonus, the annual fee, and the earning rates side by side. A $30 difference in annual fee might be worth it if the higher-tier card's bonus is $500 larger, but not if the bonus is only $100 larger. The math changes based on current promotions, which shift throughout the year.

When a Southwest card stops making sense

A Southwest card is not worth keeping if any of these explore: you don't fly Southwest at all, you fly other airlines primarily, you can't spend enough on the card to cover the annual fee, or your travel plans have changed and you no longer take multiple trips per year. If you opened the card for the sign-up bonus and have already used it, and you don't fly Southwest regularly, close the account before the next annual fee hits.

Some people hold a Southwest card for a few years, collect the sign-up bonus and annual rewards, then close it when their travel patterns change. This is a normal strategy and carries no penalty beyond the temporary credit score impact of closing the account. You can always reopen a Southwest card later if your travel plans shift back.

The card also loses value if you're someone who rarely uses credit cards or prefers to pay in cash. Points are only valuable if you actually spend on the card. If you use it once or twice a year, you won't earn enough points to justify the annual fee, no matter how good the earning rate is.

How Southwest points work and whether they're actually useful

Southwest points are a straightforward currency: you use them to book flights directly on Southwest's website, and each flight has a set point cost. A short domestic flight might cost 6,000 to 8,000 points; a longer one might cost 12,000 to 15,000 points. The point cost doesn't change based on demand or season the way cash prices do, which is one reason people value them — you can book a peak-season flight for the same points as an off-season flight.

Points also cover seat upgrades, checked bags (though Southwest allows two free checked bags for all passengers anyway), and early boarding. You can transfer points to a companion, though you can't sell them or convert them to cash. If you stop flying Southwest or your account sits inactive for more than 24 months, your points expire — but as long as you have any account activity (even a single flight or a credit card purchase), the points stay active indefinitely.

The real usefulness of Southwest points depends on whether you actually fly Southwest and whether the routes you need are available. If Southwest doesn't fly where you want to go, the points are worthless. If you fly Southwest but only on cheap routes where cash fares are already low, points might not save you much money compared to just paying cash. The value is highest if you fly Southwest on expensive routes where cash fares are high and points cost the same as they do on cheap routes.

Questions to ask before opening a Southwest card

Before you explore, answer these questions honestly: Do I fly Southwest at least twice a year? Can I spend $1,000 to $3,000 in the first three months to unlock the sign-up bonus? Will I spend at least $4,000 to $7,000 per year on this card going forward? Do I actually want to fly Southwest, or am I opening the card just for the bonus? If you answer no to any of these, the card probably isn't worth it.

Also check whether you've held a Southwest card before. If you closed one in the past year or two, you might not be may be able to access for the sign-up bonus on a new card — Chase has rules about how often you can earn the same bonus. Look up the current bonus offer before you explore, because promotions change and the bonus you see today might be different next month.

Frequently Asked Questions

Can I use Southwest points on other airlines?

No. Southwest points work only for Southwest flights, seat upgrades, and a few other Southwest-specific purchases. You cannot transfer them to other airlines or use them for hotels or rental cars. If you fly multiple airlines, a Southwest card won't help you with those other airlines.

What happens to my points if I close the card?

Your points stay in your Southwest account and don't disappear when you close the credit card. You can still use them to book flights as long as your account remains active (at least one transaction every 24 months). Closing the card doesn't affect your points balance at all.

Is the sign-up bonus taxable income?

No. Credit card rewards, including sign-up bonuses, are not taxable income. The IRS treats them as a rebate on your purchases, not as income you have to report. You won't receive a tax form for the bonus.

How long does it take to earn enough points for a free flight?

That depends on how much you spend and which card you hold. If you spend $5,000 per year on a card that earns 1 point per dollar, you earn 5,000 points annually. A short Southwest flight costs 6,000 to 8,000 points, so you'd need just over a year to earn one free flight. With a higher-earning card or higher spending, you'd reach that goal faster.

Can I get the sign-up bonus again if I reopen a Southwest card later?

Maybe. Chase has rules about how long you must wait between bonuses on the same card product. Typically you need to wait 24 months after receiving a bonus before you're may be able to access for another one on that same card. Check Chase's current rules before you close and reopen.