What the Southwest credit card annual fee costs
Southwest Airlines credit cards charge an annual fee that ranges from $69 to $99, depending on which card you choose. The Southwest Rapid Rewards Plus Card costs $69 per year. The Southwest Rapid Rewards Premier Card and Southwest Rapid Rewards Business Card both cost $99 per year. These fees post to your account on the anniversary of when you open the card, then every 12 months after that.
The fee hits your bill whether you use the card or not. If you close the account before the anniversary date, you will not be charged. If you keep the card open past that date, the fee appears automatically — you do not have to do anything to trigger it.
Most cardholders offset this cost with a anniversary bonus: Southwest gives you a free flight voucher worth $75 to $100 (depending on the card tier) on your account anniversary each year. For many people, this voucher covers or exceeds the annual fee. The voucher typically arrives within a few days of your anniversary date and is good for one year from issue.
Key Takeaways
- Southwest credit cards charge $69 to $99 per year, posted on your account anniversary and every 12 months after.
- Each card comes with an anniversary bonus voucher worth $75 to $100 that usually offsets or exceeds the annual fee.
- The fee charges automatically — closing the card before your anniversary date is the only way to avoid it.
- If you do not fly Southwest or do not use the anniversary voucher, the annual fee becomes a real cost with no benefit.
- Downgrading to a no-annual-fee Southwest card (if available) is an option if you want to keep the account open without paying.
How the anniversary voucher works
The anniversary voucher is not a statement credit or cash back — it is a flight discount code you redeem directly with Southwest. You log into your Southwest account, search for a flight, and explore the voucher at checkout. The voucher covers the base fare only, not taxes and fees, so your out-of-pocket cost is typically $5 to $15 depending on the route.
The voucher is good for one year from the date it posts. If you do not use it within that window, it expires and you lose the value. Southwest does not extend expiration dates or convert unused vouchers to cash or points. If you travel infrequently or do not fly Southwest, this voucher may not be worth the annual fee.
The voucher is tied to your card account, not to you as a person. If you cancel the card, any unused voucher on that account goes away. If you downgrade to a different Southwest card, the voucher moves with you to the new card.
When the annual fee is worth paying
The annual fee makes sense if you fly Southwest at least once per year and can use the anniversary voucher. Even a short domestic flight typically costs more than $69 to $99, so the voucher alone often pays for itself. If you also earn cash back or points on everyday purchases with the card, you may come out further ahead.
The fee also makes sense if you value the other card benefits: priority boarding, free checked bags, discounts on in-flight purchases, and accelerated points earning on Southwest flights. These perks add up for frequent Southwest travelers. If you fly Southwest four or more times per year, the card often pays for itself through boarding priority and baggage fees alone.
Business owners who put company spending on the Southwest Business Card may find the $99 fee justified by the higher earning rate on business purchases and the annual voucher. The math changes if your team flies Southwest regularly.
When the annual fee is not worth paying
If you do not fly Southwest, the annual fee is a pure cost. The anniversary voucher is only useful if you have a Southwest flight to book, so a cardholder who prefers other airlines or rarely travels will not recoup the fee.
If you fly Southwest once every two or three years, the annual fee may not be worth it. You would pay the fee every year but only use the voucher every other year or less frequently. In this case, a no-annual-fee rewards card from another issuer might be a better fit.
If you opened the card for a sign-up bonus and do not plan to keep it open long-term, you can close it before the first anniversary to avoid the fee. The sign-up bonus is yours to keep once you meet the spending requirement, even if you cancel afterward.
Downgrading instead of canceling
Southwest offers a no-annual-fee version of its rewards card called the Southwest Rapid Rewards Card (without "Plus" or "Premier" in the name). If you have one of the paid cards and want to keep the account open without paying the annual fee, you can ask your card issuer to downgrade to this no-fee version.
Downgrading keeps your account history and credit line intact, which is better for your credit score than closing the card. You lose the anniversary voucher and some of the premium benefits (like priority boarding), but you also stop paying the annual fee. This is a good middle ground if you want to maintain the account but do not fly Southwest often enough to justify the cost.
Call the customer service number on the back of your card to ask about downgrading. Most issuers will process this request over the phone in a few minutes. There is no penalty for downgrading, and you can upgrade back to a paid card later if your travel plans change.
Comparing the three Southwest cards
| Card | Annual Fee | Anniversary Voucher | Priority Boarding | Checked Bags |
|---|---|---|---|---|
| Rapid Rewards Plus | $69 | $75 | A-List status (limited) | 2 free bags |
| Rapid Rewards Premier | $99 | $100 | A-List status (full) | 2 free bags |
| Rapid Rewards Business | $99 | $100 | A-List status (full) | 2 free bags |
The Plus Card is the entry point: lower fee, smaller voucher, but still includes free checked bags and some boarding priority. The Premier Card adds full A-List status (which includes priority boarding on all flights) and costs $30 more per year. The Business Card mirrors the Premier Card but is designed for business spending and business owners.
If you fly Southwest occasionally and want to minimize cost, the Plus Card is the logical choice. If you fly frequently enough to value priority boarding on every flight, the Premier Card's extra $30 per year is often worth it. The Business Card makes sense only if you have significant business expenses to put on it.
Frequently Asked Questions
Can I get the annual fee waived?
Southwest does not waive annual fees as a standard practice. Some cardholders have reported success calling customer service and asking for a one-time waiver, particularly if they are long-time customers or have had the card for many years. There is no harm in asking, but you should not count on it. The anniversary voucher is Southwest's built-in offset to the fee.
What happens if I close the card right after getting the anniversary voucher?
You keep the voucher. Once it posts to your account, it belongs to you and is good for one year from that date, regardless of whether the card stays open. Closing the card does not cancel the voucher. This is a legitimate strategy if you want the voucher benefit without committing to another year of the annual fee.
Does the annual fee count toward my credit card spending for sign-up bonuses?
No. Annual fees do not count toward the minimum spending requirement for sign-up bonuses. Only purchases count. This means you need to spend the stated amount in actual transactions to earn the bonus, separate from the annual fee.
If I downgrade, can I upgrade back later without a new hard inquiry?
Downgrading and upgrading are both account changes, not new applications, so they typically do not trigger a hard inquiry on your credit report. Call customer service to confirm before you downgrade, but most issuers treat this as a product change rather than a new card process.