What the Southwest Airlines credit card does

The Southwest Airlines credit card is issued by Chase and earns points on every purchase you make. Those points convert into Southwest airline tickets, seat upgrades, and checked baggage fees. You get a sign-up bonus of points after you spend a certain amount in the first few months — the exact number changes, but it typically covers one or two round-trip tickets. The card charges an annual fee, which you pay whether you use the card or not.

The card's main draw is that Southwest points have a fixed value: one point always equals one cent toward a ticket, with no blackout dates or seat restrictions. That differs from airline cards that tie points to variable award charts. You also get two free checked bags per flight, which saves money if you travel with luggage regularly.

Key Takeaways

  • The card earns points on all purchases and converts them directly to Southwest tickets at a fixed rate of one point per cent of ticket cost.
  • You receive a sign-up bonus of points after meeting a spending threshold in the first months, typically worth one or two round-trip tickets.
  • An annual fee applies every year, and you should calculate whether the two free checked bags and other perks offset that cost for your travel patterns.
  • The card's value depends on how often you fly Southwest and whether you check bags; frequent Southwest travelers save the most money.

Sign-up bonus and how it works

When you open the Southwest Airlines credit card, Chase offers a bonus of points if you spend a set amount within a set timeframe — usually three months. The bonus size varies by offer and by which version of the card you choose (there are typically two or three versions available). You do not receive the bonus automatically; you must meet the spending requirement to unlock it.

The bonus points post to your account once Chase confirms you have met the spending threshold. You can then use those points to book flights on Southwest's website. The points do not expire as long as your account remains open and you have account activity at least once per year, so you do not have to use the bonus when ready.

Annual fee and what you get for it

The Southwest Airlines credit card charges an annual fee each year on your card anniversary. This fee is not waived in the first year — you pay it when you open the card. The amount varies depending on which version of the card you hold, but it typically ranges from $69 to $99 per year.

In return for that fee, you receive two free checked bags on every Southwest flight (a $35 to $70 value per round trip if you normally check bags), priority boarding, and a small anniversary bonus of points each year. If you do not check bags or rarely fly Southwest, the fee may cost more than the benefits are worth. If you fly Southwest multiple times per year with luggage, the free checked bags alone often cover the annual cost.

Earning rates and everyday spending

The Southwest Airlines credit card earns points on all purchases at a flat rate. Most versions earn 1 point per dollar spent on everything. Some premium versions earn higher rates on specific categories like dining or gas, but the base earning is consistent across all versions.

Points accumulate in your Southwest account and never expire as long as you have account activity once per year. You can combine points from multiple cards if you hold more than one Southwest card, and you can also combine points from flights you book directly with Southwest. This flexibility makes it possible to reach award thresholds faster if you both fly and use the card regularly.

How to redeem points for flights and upgrades

You redeem points through Southwest's website by logging into your account and searching for available flights. The cost in points is displayed alongside the dollar price, and you can choose to pay entirely in points, entirely in dollars, or a combination of both. Southwest shows you the point cost upfront, so you know exactly what you are paying before you book.

Points can also be used for seat upgrades at check-in or at the gate, though the upgrade cost varies by flight and demand. You can transfer points to a companion's account if you want to book a ticket for someone else, though there are limits on how many points you can transfer per year. Unlike some airline programs, Southwest does not charge fuel surcharges or have blackout dates for award flights.

Comparing the card to other airline cards

The Southwest card differs from most other airline cards in how it values points. American Airlines, United, and Delta cards tie points to award charts that change based on demand and route — the same flight might cost 25,000 points one day and 35,000 the next. Southwest's fixed one-point-per-cent model is simpler to calculate but may offer less value on premium routes where other programs charge fewer points.

The Southwest card also emphasizes free checked bags, which matters only if you check bags regularly. Cards from other airlines typically offer priority boarding, lounge access, or higher earning rates on specific categories instead. Your choice depends on which airline you fly most, how you travel (with or without checked bags), and whether you value simplicity or potential premium rewards.

Annual fee versus actual value

The annual fee is worth calculating against your actual travel. If you fly Southwest twice per year and check bags both times, the two free checked bags save you roughly $70 to $140 per year — which often covers or exceeds the annual fee. If you fly once per year or never check bags, the fee is harder to justify unless you value the priority boarding or anniversary bonus.

Some people keep the card open for the free checked bags alone and do not use it for everyday spending. Others use it for all purchases to earn points faster and offset the annual fee with the sign-up bonus and anniversary bonus combined. The right choice depends on your specific travel frequency and how you value the perks relative to the cost.

Frequently Asked Questions

Do Southwest points expire?

Points do not expire as long as your account has activity at least once per year. Activity includes flying on Southwest, using points to book a flight, or even just logging into your account. If your account goes inactive for a year, Southwest may close it and forfeit your points.

Can I use points to book flights for other people?

Yes, you can transfer points to another person's Southwest account or use your points to book a ticket in someone else's name. Transfers have annual limits, and the other person must have an active Southwest account. You can also book a companion ticket using points and then assign it to whoever you choose.

What happens if I cancel the card?

Your points remain in your Southwest account even after you close the card. You can still use those points to book flights as long as your Southwest account stays active. However, you will lose the benefits tied to the card itself, like free checked bags and priority boarding.

Is the sign-up bonus worth the annual fee?

The sign-up bonus typically covers one or two round-trip tickets, which is usually worth more than the annual fee in the first year. Whether to keep the card after year one depends on whether the free checked bags and other perks offset the annual cost for your travel patterns.

Can I earn points faster by using the card for everyday purchases?

Yes, every dollar you spend on the card earns points at the card's earning rate. If you spend $10,000 per year on the card, you earn 10,000 points, which is roughly one round-trip ticket. The more you spend, the faster you accumulate points toward your next flight.