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

The Southwest Rapid Rewards Credit Card pays you points on every purchase, and those points convert directly to Southwest flights. If you fly Southwest at least a few times a year, the card's annual fee might pay for itself through the sign-up bonus alone. But if you rarely fly Southwest, or if you book through third-party sites instead of directly with the airline, the card's value drops sharply.

The card comes in two versions — the Southwest Rapid Rewards and the Southwest Rapid Rewards Premier — issued by Chase. Both charge an annual fee (currently $69 for the standard card, $99 for the Premier). Both offer a sign-up bonus of points after you spend a set amount in the first few months. The real question is whether the points you earn on everyday purchases, plus the perks that come with the card, outweigh what you pay to hold it.

Key Takeaways

  • The Southwest card's sign-up bonus typically covers the annual fee in year one, but you need to spend enough in the first few months to unlock it.
  • Points earned on the card are worth roughly 1 cent each when you redeem them for flights, so a $1,000 annual spend earns about $10 in flight value.
  • The card includes a free checked bag on Southwest flights for you and one companion, which saves $35 to $70 per round trip if you check luggage regularly.
  • You lose value if you book through third-party travel sites, use airline miles from other carriers, or fly Southwest fewer than three times a year.
  • The Premier version adds a higher annual fee but includes priority boarding and an extra anniversary bonus, which may or may not offset the extra cost depending on your travel habits.

How the sign-up bonus works and whether it covers the fee

When you open the card, you receive a bonus of points after you spend a certain amount within the first three months. That bonus is usually between 40,000 and 75,000 points, depending on the current offer. At roughly 1 cent per point, 50,000 points is worth about $500 in flight value — enough to cover several years of annual fees.

The catch is that you have to actually spend the required amount. If the offer requires $2,000 in purchases and you only spend $1,500, you do not receive the bonus. The spending requirement is real money you would spend anyway (groceries, gas, subscriptions), not money you spend just to unlock the bonus. If you cannot reach the threshold in three months without changing your spending habits, the card is not worth opening.

After the first year, the bonus is gone. You then pay the annual fee every year and earn only the points from your regular purchases and the small perks the card includes. This is when you need to decide whether the ongoing value justifies the cost.

What the free checked bag actually saves you

The most concrete benefit of the Southwest card is the free checked bag. Southwest charges $35 for the first checked bag on most flights and $45 for the second. If you check a bag on a round trip, that is $70 you do not pay. The card also extends this benefit to one companion on the same reservation, so if you travel with a partner, you save $140 per round trip.

This benefit alone can justify the annual fee if you check bags on three or more round trips per year. A $69 annual fee divided by three trips is $23 per trip — and you are saving $70 per trip just on checked bags. The math works. But if you travel light and never check bags, or if you fly Southwest only once a year, this benefit is worthless to you.

The free bag benefit applies only to flights booked directly with Southwest. If you book through a travel site like Kayak or Expedia, even if the flight is operated by Southwest, you do not get the free bag. This is a major limitation that catches many cardholders off guard.

How points accumulate on everyday purchases and what they are worth

The card earns points at different rates depending on what you buy. Most cards in this category earn 1 point per dollar on all purchases, with bonus rates (2x or 3x points) on specific categories like dining or gas. The Southwest card typically earns 1 point per dollar on everything, with occasional bonus categories that change seasonally.

Points are worth roughly 1 cent each when redeemed for flights. That means $1,000 in annual spending earns about 1,000 points, or $10 in flight value. Over a year, if you spend $10,000 on the card, you earn $100 in points. Subtract the $69 annual fee and you net $31 in value from everyday spending alone. That is modest but real — it is money back toward flights you were going to book anyway.

The value per point can vary. During sales or on specific routes, points may be worth more or less than 1 cent. But 1 cent is the baseline to use when deciding whether the card is worth it. If you do not fly Southwest often enough to use those points, they sit in your account unused, and the card becomes pure cost.

The difference between the standard and Premier versions

The Premier card costs $30 more per year ($99 instead of $69) and adds two main benefits: priority boarding on every Southwest flight and an extra anniversary bonus of points each year. Priority boarding means you board earlier and get better seat selection. The anniversary bonus is usually 6,000 to 10,000 points, worth $60 to $100.

If you value early boarding and you fly Southwest frequently, the Premier card can be worth the extra cost. The anniversary bonus alone covers most of the fee increase. But if you do not care about boarding position or if you fly Southwest fewer than four times a year, the standard card is the better choice. The extra $30 is not worth it for a benefit you will not use.

Both versions offer the same free checked bag and the same points earning rate. The only real differences are boarding priority and the anniversary bonus. Decide based on how often you fly and whether you want to pay for priority boarding.

When the Southwest card loses value

The card is not worth holding if you book through third-party travel sites instead of directly with Southwest. Sites like Google Flights, Kayak, and Expedia often show Southwest flights, but booking through them means you do not earn the card's free checked bag benefit and you may not earn points at the full rate. Always book directly on Southwest.com to get the full value of the card.

The card also loses value if you accumulate points but never use them. Points do not expire as long as your account is active, but they are only valuable if you actually redeem them for flights. If you open the card, earn points for two years, and then never fly Southwest again, those points are dead money. The card only makes sense if you have a realistic plan to use the points within a reasonable timeframe.

Finally, the card is not worth it if you have other airline cards that offer better rewards on your spending patterns. If you fly United or American more often, or if another airline's card offers higher bonus categories that match your spending, that card may deliver more value. Compare the sign-up bonus and ongoing rewards across the cards you are considering before you choose.

How to decide if this card fits your travel style

Start with a straightforward question: Do you fly Southwest at least three times per year? If the answer is no, stop here. The card is not for you. If yes, move to the next question: Do you check bags on those flights, or do you plan to? If yes, the free checked bag benefit alone likely covers the annual fee. If no, you need to earn enough points on everyday spending to justify the cost.

Next, look at your annual spending on the card. If you spend $10,000 or more per year on everyday purchases (groceries, gas, subscriptions, dining), the points add up to real value. If you spend $3,000 or less, the points are modest and may not be worth the annual fee. Use the 1-cent-per-point rule to estimate: $10,000 in spending = $100 in points value, minus the $69 fee = $31 net gain.

Finally, make sure you will book directly with Southwest, not through third-party sites. If you use Google Flights or Kayak to search and then book through the airline's site, you are fine. But if you book through a travel site and expect the card benefits to explore, you will be disappointed. The card only works at full value when you book directly on Southwest.com.

Frequently Asked Questions

Do I have to use the card for every Southwest purchase to get the free checked bag?

No. The free checked bag applies to any Southwest flight booked with the card in your name, regardless of how you paid for the ticket. You could pay cash for the flight and still get the free bag. However, you must book the flight directly on Southwest.com using the card account to receive the benefit.

What happens to my points if I close the card?

Your points stay in your Southwest Rapid Rewards account even after you close the card. You can redeem them for flights anytime. However, if your account sits inactive for 24 months with no points activity, Southwest may close the account and forfeit the points. Keep the account active by earning or redeeming points at least once every two years.

Can I use points from this card to book flights for other people?

Yes. You can book flights for anyone using your points, as long as you are the one making the reservation. The free checked bag benefit, however, applies only to you and one companion on the same reservation. If you book a flight for a friend traveling alone, they do not get the free bag.

Is the sign-up bonus worth opening the card if I only fly Southwest once a year?

The sign-up bonus alone might be worth it, but you will lose money in year two and beyond. If you earn a 50,000-point bonus (worth $500) but then pay $69 per year for a card you barely use, you break even after year one and lose money after that. Open it for the bonus only if you plan to use the card for everyday spending or if you know you will fly Southwest more frequently in the future.

Does the card earn points on balance transfers or cash advances?

No. The card earns points only on purchases. Balance transfers and cash advances do not earn points and typically carry high fees. Use the card only for regular purchases if you want to maximize points.