Whether a Southwest card makes sense depends on how often you fly Southwest and whether you'll use the perks outside of flights
A Southwest credit card is worth it if you fly Southwest at least a few times a year and will use the annual companion pass or other benefits. If you fly other airlines mostly, or you fly Southwest only once every couple of years, the annual fee will cost more than you save. The math changes based on which Southwest card you pick, how much you spend, and what you do with the rewards points.
Southwest cards come in three main versions through Chase: the Southwest Rapid Rewards, the Southwest Rapid Rewards Plus, and the Southwest Rapid Rewards Premier. Each has a different annual fee, sign-up bonus, and set of perks. The card that works for you depends on your actual flying habits, not on which one sounds best.
Key Takeaways
- Southwest cards charge annual fees ranging from $0 to $99, and you need to fly enough to earn rewards that cover that cost.
- The main benefit is the annual companion pass on higher-tier cards, which lets someone fly free with you — but only on Southwest flights you book with points or cash.
- You earn points on every dollar spent, but you need a large sign-up bonus to make the first-year math work, since that bonus often covers the annual fee.
- Southwest points are worth less than points from other airlines if you fly routes where Southwest doesn't operate or if you prefer premium cabins.
- The card only makes financial sense if you'll actually use the benefits; a card sitting in a drawer costs money every year.
The three Southwest cards and what each one costs
The Southwest Rapid Rewards card has no annual fee and earns 1 point per dollar spent. You get a sign-up bonus of around 40,000 points if you meet the spending requirement (usually $500 in the first three months). This card is the lowest-risk option because you pay nothing to hold it, but the rewards rate is lower than the other two.
The Southwest Rapid Rewards Plus costs $69 per year and earns 2 points per dollar on Southwest purchases and 1 point per dollar on everything else. The sign-up bonus is typically 50,000 points. You also get a $50 Southwest credit each year on your birthday month. The annual fee is offset if you fly Southwest enough to earn $69 worth of points, or if you use the birthday credit.
The Southwest Rapid Rewards Premier costs $99 per year and earns the same points rate as the Plus card (2 points on Southwest, 1 point elsewhere). The sign-up bonus is usually 75,000 points. The key difference is that you get an annual companion pass — someone can fly free with you on any Southwest flight you book. This pass is the main reason people choose this card, because a free round-trip ticket for another person can easily be worth $200 to $400.
How to calculate whether the annual fee pays for itself
Start with what you actually spend on Southwest flights each year. If you spend $1,000 per year on Southwest tickets, you earn 2,000 points with the Plus card (at 2 points per dollar). At Southwest's typical redemption rate of 1.5 cents per point, that's $30 in value — not enough to cover the $69 annual fee.
Now add the birthday credit on the Plus card: that's $50 in free Southwest credit, which brings you to $80 in value. You're now ahead by $11. If you also spend money on other categories (groceries, gas, dining), you earn 1 point per dollar on those too, which adds more value.
For the Premier card, the math is different because of the companion pass. If you use that pass even once per year, and the companion's ticket would have cost $200 or more, you've already covered the $99 annual fee. Most people who fly Southwest regularly use the companion pass at least once, which makes the Premier card the better choice for frequent flyers.
If you fly Southwest only once or twice a year and don't have a travel companion, the no-fee Rapid Rewards card is the right choice. You keep the points you earn and pay nothing to hold the card.
What the sign-up bonus actually means for your first year
The sign-up bonus is the biggest chunk of value in year one. A 75,000-point bonus on the Premier card is worth roughly $1,125 at the standard 1.5-cent redemption rate. That covers the $99 annual fee many times over, which is why the first year usually makes financial sense even if you don't fly much.
The catch is that you have to spend a certain amount within a set timeframe to earn the bonus — usually $3,000 in three months. If you can't or won't meet that spending requirement, you don't get the bonus and you've paid the annual fee for nothing. Check whether you can hit the spending target before you apply.
In year two and beyond, there's no sign-up bonus, so the annual fee becomes a real cost you have to justify with your actual flying and spending. This is where many people realize they don't use the card enough to make it worth keeping.
When the companion pass is worth the $99 annual fee
The companion pass on the Premier card is the biggest financial benefit if you use it. It lets one person fly free on any Southwest flight you book with cash or points. The pass is good for the calendar year you earn it, plus the following calendar year, so you actually get about 14 months of use.
The pass only works on flights you book yourself — you can't give it to someone else to use. Both of you have to be on the same reservation. If you fly Southwest with a spouse, partner, or family member at least once a year, the pass will likely save you more than $99.
If you fly alone most of the time, or if your travel companions rarely fly with you, the companion pass has no value. In that case, the Premier card's higher annual fee doesn't make sense, and you should use the Plus or no-fee card instead.
How Southwest points compare to other airline rewards
Southwest points are worth less than points from other airlines if you want premium cabin seating or if you fly routes where Southwest doesn't operate. Southwest doesn't have a first-class cabin on most flights, so you can't use points to upgrade the way you can with American, United, or Delta. If premium seating matters to you, those airlines' cards might offer better value.
Southwest also has limited international routes. If you fly to Europe, Asia, or other regions regularly, you'll earn points you can't easily use. Other airlines' points can be transferred to partner airlines or used for more destinations.
On domestic routes where Southwest operates, the points are competitive. Southwest's pricing is transparent — you always know how many points a flight costs — and there are no blackout dates. That's a real advantage over some other airlines.
The hidden costs: annual fees that add up
If you keep a Southwest card but don't use it, the annual fee is pure cost. A $99 annual fee on a card you don't touch is $99 wasted. Many people sign up for the bonus, use it once, and then forget about the card. When the annual fee hits, they've already moved on.
Set a calendar reminder for one month before your annual fee date. At that point, decide whether you'll fly Southwest enough in the next year to justify keeping the card. If not, close it before the fee posts. You can always reopen it later if your travel plans change.
Also watch for category bonuses that expire. Some Southwest cards offer temporary bonuses on certain spending categories (like 3 points per dollar on dining for the first six months). Once that period ends, your rewards rate drops. Make sure you know when these bonuses end so you're not paying an annual fee for a card that no longer earns well.
Frequently Asked Questions
Can I use Southwest points on airlines other than Southwest?
No. Southwest points can only be used for Southwest flights, seat upgrades, or to buy gift cards. You cannot transfer them to other airlines or use them for hotels or rental cars. This limits your flexibility compared to some other airline cards.
What happens to my companion pass if I close the card?
You keep the companion pass for the remainder of the calendar year and the following calendar year, even if you close the card. The pass is tied to your Rapid Rewards account, not the credit card itself. You can close the card and still use the pass.
Do I have to spend money on Southwest flights to make the card worth it?
No. You earn points on all purchases, not just Southwest flights. If you spend $5,000 per year on groceries, gas, and dining with the Plus card, you earn 5,000 points (at 1 point per dollar), which is worth roughly $75. Add that to the $50 birthday credit and you've covered most of the $69 annual fee without flying at all.
Is the sign-up bonus worth applying for if I only fly once a year?
Yes, if you can meet the spending requirement. A 75,000-point bonus is worth around $1,125, which covers the annual fee and gives you points for future flights. Even if you fly only once, the bonus value usually makes the first year worthwhile. Just make sure you'll use the points before they expire (they don't expire, but you might close the card).
What if I have a Southwest card but my travel plans change and I stop flying Southwest?
Close the card before the next annual fee posts. You can call Chase or log into your account to request closure. If you think you might fly Southwest again in the future, you can reopen a Southwest card later — there's no penalty for closing and reopening, though you'll need to meet a new spending requirement for any sign-up bonus.