The Southwest card makes sense if you fly Southwest regularly and want to offset ticket costs with points
The Southwest Rapid Rewards card comes in two versions — the standard card and the Priority card — and both earn points on every purchase that you can redeem for flights, seat upgrades, and companion passes. The standard card charges no annual fee; the Priority card charges $69 per year. Both offer a sign-up bonus of points (the amount changes by offer), which typically covers one or two free flights if you meet the spending requirement within the first few months.
Whether the card is worth it depends on three things: how often you actually fly Southwest, whether you spend enough to hit bonus categories, and whether the annual fee (on the Priority version) saves you more than it costs. If you fly Southwest once or twice a year and pay cash, the card probably costs you money. If you fly Southwest four or more times yearly, or if you book flights for family members, the points add up fast enough to cover the annual fee and then some.
The card is not a path to free travel if you don't fly. The points expire if you don't use them within a set time, and they're worth less per dollar spent than cash-back cards if you're not redeeming them for flights. Read the current terms before you apply, because sign-up bonuses and earning rates change.
Key Takeaways
- The standard Southwest card has no annual fee and earns points on all purchases; the Priority card costs $69 per year but earns points faster and includes perks like priority boarding.
- The sign-up bonus typically requires you to spend $500 to $2,000 within the first three months, and the points you earn usually cover one or two Southwest flights.
- Points expire after a period of inactivity, so the card only makes financial sense if you actually use Southwest flights within that window.
- If you fly Southwest fewer than three times per year, a flat cash-back card will likely save you more money than the rewards you'd earn from this card.
How the sign-up bonus works and what it actually costs you
When you open a Southwest card, you receive a bonus of points if you spend a certain amount within a set timeframe — usually $500 to $2,000 in the first three months. The bonus is typically 40,000 to 75,000 points, depending on the current offer. At Southwest's standard redemption rate, 40,000 points is worth roughly one round-trip flight in economy; 75,000 points might cover two flights or one flight plus an upgrade.
The catch is that you have to actually spend that money to get the bonus. If you're putting ordinary expenses on the card anyway — groceries, gas, utilities — the bonus is essentially free. If you're making purchases you wouldn't otherwise make just to hit the spending target, you're paying real money for points that may not be worth what you think. A $1,500 purchase to earn a $300 flight is not a gain; it's a loss.
The bonus also comes with strings: you must use the points within a certain period or they disappear. Southwest's points don't expire as long as your account is active, but if you close the card or don't use it for a long time, the points may be forfeited. Check the current terms when you apply.
Annual fees and whether they pay for themselves
The standard card costs nothing per year. The Priority card costs $69 annually and includes benefits like priority boarding, a free checked bag on your first flight each year, and a higher earning rate on Southwest purchases. If you fly Southwest at least three times per year, the priority boarding alone often saves you money by letting you board early and avoid paying for seat selection.
The free checked bag on the Priority card is worth $35 to $40 per flight if you'd otherwise pay for it. If you fly twice a year with a checked bag, that benefit alone covers most of the annual fee. The higher earning rate on Southwest purchases (3x points instead of 1x) also adds up if you buy Southwest gift cards or book flights directly through the airline.
If you fly Southwest once a year or less, the $69 annual fee is hard to justify. The standard card with no annual fee is the better choice. If you're unsure, start with the standard card and upgrade later if you find yourself flying more often.
Earning rates and how points compare to cash back
The standard Southwest card earns 1 point per dollar spent on all purchases. The Priority card earns 2 points per dollar on Southwest purchases and 1 point per dollar on everything else. At Southwest's redemption rate, 1 point is worth roughly 1.5 to 2 cents, depending on the flight and how far in advance you book. That means the standard card gives you about 1.5 to 2 percent cash-back value on all spending.
A flat 2 percent cash-back card (with no annual fee) would give you the same or better value on everyday spending. The Southwest card only wins if you're redeeming points for flights that would cost more if you paid cash, or if you're using the Priority card's perks to save money on fees and upgrades. If you never fly Southwest, or if you fly once every few years, a cash-back card is the better choice.
Points also have a hidden cost: they're locked into Southwest flights. If Southwest doesn't serve your home airport, or if you prefer other airlines, the points are nearly worthless. Cash back works anywhere.
What happens to your points if you close the card
Southwest points don't expire as long as your account is active, but closing the card doesn't automatically delete your points — you keep them as long as you have some activity on your Southwest account (like booking a flight or buying a gift card) at least once every 24 months. If you go more than two years without any Southwest activity, your points will be forfeited.
This means you can close the card and still use your points later, but only if you stay connected to Southwest in some way. If you're done flying Southwest entirely, your points are gone. If you think you might fly Southwest again someday, keep the account open or make a small purchase (like a $10 gift card) every couple of years to keep your points alive.
Comparing the standard card to the Priority card
The standard card is free and earns 1 point per dollar everywhere. It's the right choice if you fly Southwest occasionally, don't care about priority boarding, or want to test whether the rewards are worth your time before paying an annual fee.
The Priority card costs $69 per year and earns 2 points per dollar on Southwest purchases, plus priority boarding, a free checked bag on your first flight each year, and other perks. It's worth the fee if you fly Southwest at least three times per year, especially if you check bags or want to avoid paying for seat selection. The higher earning rate on Southwest purchases also adds up if you buy gift cards or book flights frequently.
You can start with the standard card and switch to Priority later if your flying increases. There's no penalty for downgrading, and you won't lose your points.
Red flags and common mistakes
Don't apply for the card just to get the sign-up bonus if you don't actually fly Southwest. The bonus is only valuable if you redeem the points for flights you would have bought anyway. Spending extra money to hit the bonus threshold erases the benefit.
Don't assume your points will last forever. They won't expire as long as your account is active, but if you close the card and don't use Southwest for more than 24 months, they disappear. Set a reminder if you're planning to use points later.
Don't compare the points value to cash-back cards without factoring in the perks. If you fly Southwest frequently, the priority boarding and free checked bag on the Priority card may save you more than a higher cash-back rate would on other cards. But if you don't fly Southwest, those perks are worthless.
Don't open the card if Southwest doesn't serve your home airport or if you prefer other airlines. The points are only useful for Southwest flights, and you'll end up paying an annual fee for a card you can't use.
Frequently Asked Questions
Can I use Southwest points for flights on other airlines?
No. Southwest points can only be redeemed for Southwest flights, seat upgrades, and companion passes. You cannot transfer them to other airlines or use them for hotels or rental cars. If you don't fly Southwest, the points have no value.
What's a companion pass and is it worth it?
A companion pass lets one person fly free on any Southwest flight you book for a set period (usually one year from the date you earn it). You still pay taxes and fees for the companion, but the base fare is free. It's valuable if you travel with the same person regularly, but worthless if you fly alone.
Do I have to use the card to keep my points?
No. Your points stay active as long as your Southwest account has some activity every 24 months — a flight, a gift card purchase, or even a phone call to customer service counts. You don't have to use the credit card itself, just your Southwest account.
What if I don't meet the sign-up bonus spending requirement?
You won't receive the bonus points. You'll still have the card and earn regular points on purchases, but you'll miss out on the lump sum that usually covers one or two free flights. Only apply if you're confident you can spend the required amount within the timeframe without overspending.
Is the Southwest card better than a general cash-back card?
It depends on how often you fly Southwest. If you fly Southwest three or more times per year, the rewards and perks usually make it worth it. If you fly less often or prefer other airlines, a flat cash-back card will save you more money because the cash works anywhere and there's no annual fee to offset.