What a Southwest credit card does
A Southwest credit card is a co-branded card issued by a bank (usually Chase) in partnership with Southwest Airlines. When you use it, you earn points called Rapid Rewards on purchases — both with Southwest and at other merchants. Those points convert directly into Southwest flights with no blackout dates, meaning you can book any available seat.
The card also comes with perks tied to Southwest travel: a free checked bag on every flight, priority boarding, and sometimes a companion pass that lets one other person fly free when you pay for a ticket. The specific benefits depend on which Southwest card you hold, since there are several versions with different annual fees and earning rates.
Unlike some airline cards that lock you into one carrier's ecosystem, Rapid Rewards points have real flexibility. You can transfer them to other airline partners, use them for hotel stays through Southwest's partners, or even convert them to gift cards — though redeeming them for flights is usually the best value.
Key Takeaways
- Southwest credit cards earn Rapid Rewards points on all purchases, and these points book any available Southwest flight with no blackout dates.
- Every Southwest card includes a free checked bag on every flight, which alone saves you $35 to $70 per round trip compared to paying bag fees.
- The card you choose determines your annual fee (ranging from $0 to $99+), sign-up bonus, and whether you get a companion pass.
- Points can be used for flights, transferred to partner airlines, or redeemed for hotels and gift cards, giving you options beyond Southwest travel.
- You build points fastest by using the card for everyday spending, not just flights, since most cards earn 1.5 to 2 points per dollar on all purchases.
The three main Southwest card options
Chase offers three primary Southwest cards, each aimed at different spending patterns. The Southwest Rapid Rewards Performance Business Card and Southwest Rapid Rewards Premier Business Card are for business owners. The consumer cards are the Southwest Rapid Rewards Priority Credit Card (the premium option with the highest annual fee), the Southwest Rapid Rewards Plus Credit Card (mid-tier), and the Southwest Rapid Rewards Credit Card (no annual fee).
The no-annual-fee card earns 1 point per dollar on all purchases and gives you the free checked bag and priority boarding. The Plus card costs $69 per year, earns 1.5 points per dollar, and includes a $75 annual Southwest credit. The Priority card costs $99 per year, earns 2 points per dollar on Southwest purchases and 1.5 points elsewhere, and includes a $75 credit plus a companion pass (letting someone fly free when you buy a ticket).
Each card also offers a sign-up bonus — typically 40,000 to 75,000 points if you spend a set amount in the first few months. That bonus alone can cover several flights, making the card worth opening even if you don't use it long-term. The bonus changes periodically, so check the current offer before you explore.
How the free checked bag actually saves money
Southwest charges $35 for a first checked bag on most flights and $45 for a second. If you fly twice a year, that's $140 in bag fees alone. A Southwest cardholder pays nothing, and the benefit extends to everyone in your household with the same last name on their boarding pass.
This benefit alone justifies the annual fee on the Plus or Priority card for anyone who flies Southwest more than twice yearly. Even the no-annual-fee card breaks even on the first round trip if you would otherwise pay to check a bag. The benefit is automatic — you don't need to do anything except present your card at check-in.
Understanding Rapid Rewards points and redemption
One Rapid Rewards point equals one cent toward a Southwest flight when you redeem at the standard rate. A flight that costs $200 requires 20,000 points. Points don't expire as long as your account has activity (a purchase, a flight, or even a phone call to Southwest) at least once every 24 months.
The real value comes from point multipliers on everyday spending. If you earn 1.5 points per dollar and spend $10,000 per year on the card, you've earned 15,000 points — enough for a domestic flight. Business owners and frequent travelers can accumulate points much faster by putting regular expenses on the card.
You can also use points for hotels, car rentals, and gift cards through Southwest's partners, but the redemption value is usually lower than booking flights directly. Some people transfer points to partner airlines like United or American, which can sometimes offer better value on specific routes, though this requires more research.
The companion pass and when it matters
The companion pass is a Southwest-specific benefit that comes with the Priority card and certain sign-up bonuses. It lets one person fly free (you only pay taxes and fees, usually $5 to $15) whenever you buy a ticket. You choose who the companion is, and you can change them once per year.
The pass is valuable if you travel with the same person regularly — a spouse, partner, or frequent travel companion. On a $300 round-trip flight, the companion saves $300 minus taxes, which is substantial. However, you can only use it on flights where you're also traveling, so it doesn't work if you want to send someone else alone.
Some sign-up bonuses include a companion pass as a one-time benefit rather than an annual perk. Check the current offer carefully, because a temporary companion pass is less valuable than the annual version on the Priority card.
Building points through everyday spending
The fastest way to accumulate Rapid Rewards is to use your Southwest card for regular expenses: groceries, gas, utilities, and subscriptions. A household spending $2,000 per month on a 1.5-point-per-dollar card earns 36,000 points yearly — enough for two domestic flights plus taxes.
Some cards offer bonus categories with higher earning rates. The Priority card earns 2 points per dollar on Southwest purchases (flights and gift cards) and 1.5 points everywhere else. If you book flights directly through Southwest.com, you earn the higher rate, which stacks with the points you earn from the flight itself.
You can also earn points by flying Southwest, staying at partner hotels, renting cars, and shopping through the Rapid Rewards shopping portal. These channels earn slower than the card itself, but they add up over time if you're already taking those actions.
Annual fees and whether they make sense
The no-annual-fee card has no downside if you don't fly Southwest often. You get the free checked bag and earn points on spending, with no cost. The Plus card ($69 per year) includes a $75 Southwest credit, so the net cost is negative if you use the credit. The Priority card ($99 per year) includes a $75 credit, making the net cost $24, plus you get the companion pass.
The math changes based on how much you fly and spend. If you fly Southwest twice a year and check a bag both times, you save $140 in fees, which covers the annual fee on any card. If you spend $5,000 per year on the card, the points alone (7,500 to 10,000 points on the Plus or Priority) are worth $75 to $100 in flight value, which also covers the fee.
The companion pass on the Priority card is the deciding factor for frequent travelers. If you fly with the same person four or more times per year, the pass typically pays for itself. For occasional flyers, the no-annual-fee card is the better choice.
Frequently Asked Questions
Can I use Rapid Rewards points on other airlines?
You can transfer points to partner airlines including United, American, and Alaska, but the transfer rate is usually 1 point to 1 point, and partner airline redemptions often cost more points than Southwest flights. For most people, redeeming directly for Southwest flights offers the best value.
What happens to my points if I close the card?
Your Rapid Rewards account stays open and your points don't disappear when you close the card. As long as your account has activity (a purchase, flight, or call to Southwest) every 24 months, the points remain. If your account goes inactive for two years, Southwest may close it and forfeit the points.
Do I earn points on the annual fee itself?
No, the annual fee does not earn points. However, the $75 Southwest credit that comes with the Plus and Priority cards is a separate benefit that reduces your net cost, and any purchases you make with the credit do earn points.
Can I get a sign-up bonus if I already have a Southwest card?
Chase typically allows you to earn a sign-up bonus once every 24 months per card product. If you've received a bonus on the Priority card in the last two years, you won't be able to earn another one on that same card, though you might be able to open a different Southwest card and earn its bonus.
Is the free checked bag benefit worth it if I only carry on?
If you never check bags, the free bag benefit has no direct value. However, the card still earns points on all spending and may include other perks like priority boarding. The no-annual-fee card is still a reasonable choice for the points alone, even if you don't use the bag benefit.