What the Southwest Airlines credit card actually does

The Southwest Airlines credit card is issued by Chase and earns points on every purchase you make. Those points convert directly into Southwest airline tickets, seat upgrades, and checked baggage fees. Unlike some airline cards that lock you into a specific airline through a co-branded partnership, this card is straightforward: you spend money, you get points, you use those points with Southwest.

The card comes with an annual fee — currently $69 — and that fee renews every year you keep the card open. You get a one-time bonus of points when you first open the account, usually 40,000 to 60,000 points depending on the current offer. That bonus alone can cover a domestic round-trip ticket on Southwest, which is why many people open the card specifically to cash in the sign-up bonus and then close it.

The earning rate is straightforward: 2 points per dollar on Southwest purchases and at restaurants, 1 point per dollar on everything else. Those points never expire as long as your account stays open, even if you don't use the card for months.

Key Takeaways

  • The card charges a $69 annual fee that renews every year, so you need to earn enough points to make that fee worth paying.
  • You earn a one-time sign-up bonus of 40,000 to 60,000 points when you first open the account, which typically covers one domestic round-trip ticket.
  • Points earn at 2 points per dollar on Southwest flights and restaurants, and 1 point per dollar on all other purchases.
  • Southwest does not charge baggage fees for the first two checked bags, so the card's value depends partly on how often you check luggage on other airlines.
  • Points never expire as long as your account is open, but closing the account cancels all unused points.

How much you actually need to spend to break even on the annual fee

The $69 annual fee means you need to earn enough points to justify keeping the card open. On a typical domestic Southwest flight, you need about 6,000 to 8,000 points for a one-way ticket, depending on the route and how far in advance you book. That means the annual fee is worth paying only if you fly Southwest at least once a year, or if you spend enough on restaurants and other purchases to accumulate points regularly.

If you spend $3,450 per year on the card at the 2-point rate (restaurants and Southwest purchases), you earn 6,900 points — enough for one domestic round-trip. If you spend less than that, the annual fee costs you more than the value you get back. The math changes if you also use the card for everyday purchases at the 1-point rate, but that requires higher total spending to reach the same point total.

Many people treat this card as a one-time bonus card: they open it, hit the sign-up bonus, book a flight, and close the account before the annual fee renews. That strategy works if you don't mind the hard inquiry on your credit report and the temporary dip in your credit score from opening a new account.

The sign-up bonus and how to use it

The current sign-up bonus is typically 40,000 to 60,000 points, though Chase changes this offer every few months. You earn the bonus by spending a set amount within the first three months — usually $1,000 to $2,000 depending on the offer. That spending requirement is real: you have to put that much on the card, not just charge it and pay it back when ready.

Once you hit the spending requirement, the points post to your account within one to two billing cycles. You then log into your Southwest account and search for flights using the "Rapid Rewards" points option instead of dollars. The points show up as a payment method at checkout, and you can use them to book any available seat on any Southwest flight.

The bonus points are worth roughly $400 to $600 in ticket value on a domestic flight, which is why the card pays for itself when ready if you were planning to fly Southwest anyway. If you were not planning to fly, the bonus is not worth opening the account.

When the card makes sense and when it does not

This card makes sense if you fly Southwest at least once a year and spend money on restaurants regularly. The 2-point earning rate on restaurants is competitive with other travel cards, and Southwest's lack of baggage fees for the first two checked bags saves you $60 per round-trip compared to most other airlines. If you check bags on every trip, the card pays for itself through baggage savings alone.

The card does not make sense if you rarely fly Southwest, prefer other airlines, or do not check baggage. The 1-point rate on non-restaurant purchases is lower than what you get from cash-back cards like the Chase Freedom Unlimited, which earns 1.5% cash back on everything. If you value flexibility and do not care about airline loyalty, a cash-back card is a better choice.

The card also does not make sense if you are trying to minimize hard inquiries on your credit report or if you are working to rebuild your credit score. Opening a new account temporarily lowers your score by 5 to 10 points, and that matters if you are planning to explore for a mortgage or car loan within the next few months.

How points work and what they are actually worth

Southwest points are not the same as airline miles on other carriers. You do not bid for seats or pay extra for premium cabin upgrades with points — you use points to book the same ticket price as anyone else. That simplicity is Southwest's main selling point: a point is worth roughly 1 cent per point on domestic flights, sometimes more on longer routes.

Points can also pay for seat upgrades, checked baggage fees if you are not a cardholder, and companion passes. A companion pass lets one other person fly free on any Southwest flight you book with points or cash, which is valuable if you travel with a partner regularly. You earn a companion pass by reaching 110,000 points in a calendar year, which requires significant spending or multiple sign-up bonuses.

Points never expire as long as your account is open and you have activity on your Southwest Rapid Rewards account at least once per year. Activity includes flying, earning points, or even just logging in. If your account goes inactive for 24 months, Southwest closes it and cancels all your points.

The annual fee renewal and when to close the account

The $69 annual fee posts to your account on the anniversary of when you opened the card. Chase does not send a reminder, so you need to track the date yourself. If you decide the card is not worth keeping, you can close the account anytime, but closing it cancels all unused points when ready.

Some people keep the card open for one year, use the sign-up bonus and annual points, then close it before the second annual fee hits. Others keep it open indefinitely because they fly Southwest regularly and the fee is worth the points they earn. There is no penalty for closing the account early — you just lose the points.

If you close the account and want to open it again later, Chase typically allows you to reopen a closed credit card account within a certain window, though the terms vary. You can always open a new Southwest card with a new sign-up bonus, but Chase has rules about how often you can earn the same bonus — usually once every 24 months.

How this card affects your credit and what to watch for

Opening the card creates a hard inquiry on your credit report, which temporarily lowers your score by a few points. The inquiry stays on your report for two years but stops affecting your score after about six months. The new account also lowers your average account age, which is part of your credit score calculation, but that effect is small if you have other older accounts open.

Using the card responsibly — charging purchases and paying the full balance each month — actually helps your credit score over time because it shows you can manage credit without carrying a balance. Carrying a balance and paying interest defeats the purpose of the card entirely.

Watch for the annual fee renewal date so you can decide whether to keep the card or close it. Set a phone reminder three weeks before the anniversary date, so you have time to decide and act before the fee posts.

Frequently Asked Questions

Can I get the sign-up bonus if I already have a Southwest card?

Chase typically allows you to earn the sign-up bonus once every 24 months. If you closed a Southwest card more than two years ago, you can open a new one and earn the bonus again. If you closed it less than two years ago, you will not may have access to for the bonus on a new card, though you can still open the card and earn points at the regular rate.

What happens to my points if I close the card?

Your points stay in your Southwest Rapid Rewards account as long as you have activity on that account at least once every 24 months. Closing the credit card does not close your Rapid Rewards account. You can still use your points to book flights even after you close the card.

Is the sign-up bonus worth the annual fee?

Yes, if you were planning to fly Southwest anyway. The bonus covers one domestic round-trip ticket, which is worth $200 to $400. The annual fee is $69, so you come out ahead when ready. If you were not planning to fly, the bonus is not worth opening the account.

Can I use points on flights booked by someone else?

No, points are tied to your Rapid Rewards account and can only book flights for you or people you add as companions. You cannot transfer points to another person or use them to pay for someone else's ticket.

Do I earn points on the annual fee itself?

No, annual fees do not earn points on any credit card. The fee is a cost, not a purchase.