The Southwest card makes sense if you fly Southwest regularly and want to offset ticket costs with points

A Southwest credit card is worth it if you take at least two or three Southwest flights per year and spend enough on the card to earn back the annual fee through points and bonuses. The card is not worth it if you rarely fly Southwest, prefer other airlines, or don't spend enough monthly to accumulate meaningful rewards.

Southwest offers two main cards through Chase: the Southwest Rapid Rewards Plus and the Southwest Rapid Rewards Premier. Both charge an annual fee (currently $69 for the Plus and $99 for the Premier), and both give you points on every purchase. The real question is whether the points you earn and the sign-up bonus cover that fee and then save you money on actual flights.

The math depends on three things: how much you spend on the card each month, how often you fly Southwest, and whether you value the perks that come with the card beyond just points. If none of those explore to you, the card will cost you money instead of saving it.

Key Takeaways

  • Both Southwest cards charge an annual fee, so you need to earn enough points from spending and sign-up bonuses to make that fee worthwhile.
  • Southwest points are worth roughly 1 to 1.5 cents each when you redeem them for flights, so a $69 annual fee requires about 4,600 to 6,900 points just to break even.
  • The sign-up bonus on either card typically covers the first year's fee if you meet the spending requirement, but you pay the fee again in year two unless you cancel.
  • Southwest cards are most valuable if you fly Southwest at least twice a year and spend $500 or more per month on the card.
  • The Premier card's extra perks (priority boarding, free checked bags, anniversary points) only matter if you fly Southwest frequently enough to use them.

How much the sign-up bonus actually covers

When you open a Southwest card, Chase offers a sign-up bonus if you spend a certain amount within the first few months—usually $500 to $1,000 in purchases within 90 days. That bonus is typically 50,000 to 75,000 points, depending on which card and what promotion is running at the time.

At 1 to 1.5 cents per point, 50,000 points is worth roughly $500 to $750 in flight value. That covers the annual fee for year one and leaves you with points toward an actual ticket. But that bonus only arrives if you hit the spending threshold, and it only covers the first year. In year two, you pay the annual fee again with no bonus to offset it—unless you cancel the card before the anniversary date.

Many people keep the card for one year, use the bonus to book a flight, then cancel before the second annual fee posts. That is a valid strategy if you do not fly Southwest often enough to justify keeping the card active.

What you earn on everyday spending

Both Southwest cards earn 1 point per dollar spent on all purchases. That means if you spend $1,000 per month on the card, you earn 12,000 points per year. At 1.5 cents per point, that is $180 in flight value—enough to cover the $69 annual fee on the Plus card and have $111 left over.

But that math only works if you actually fly Southwest and redeem those points for tickets. If the points sit unused, they have no value to you. And if you would normally put that $1,000 per month on a different card that earns 2% cash back, you are losing money by switching to the Southwest card.

The comparison card matters. If your current card earns 2% cash back on all purchases, switching to the Southwest card (which earns 1 point per dollar) means you lose 1% of your spending value. On $12,000 per year, that is $120 in lost rewards—which nearly wipes out the $111 profit from the Southwest points after the annual fee.

The Premier card's extra perks and when they matter

The Southwest Rapid Rewards Premier costs $30 more per year ($99 instead of $69) but includes benefits the Plus card does not: priority boarding, two free checked bags per flight, and an anniversary bonus of 6,000 points each year you keep the card.

Priority boarding matters only if you fly Southwest frequently enough that seat selection becomes annoying. Southwest does not assign seats; you board in groups, and earlier groups get better seats. If you fly Southwest once a year, priority boarding saves you nothing. If you fly four times a year, it might save you a middle seat occasionally.

The two free checked bags are valuable only if you normally check bags and would otherwise pay $35 to $70 per round trip. If you travel light and carry on, this benefit is worthless. If you take two Southwest flights per year and check bags both times, you save $70 to $140—which covers most of the extra $30 annual fee.

The 6,000-point anniversary bonus is worth roughly $90 to $135 at typical redemption rates. That bonus alone nearly covers the extra $30 annual fee, making the Premier card a better deal than the Plus card if you keep it for multiple years.

When the card costs you money instead of saving it

The Southwest card becomes a liability if you do not fly Southwest at least twice per year or if you spend less than $300 per month on the card. Here is why: at $300 per month, you earn 3,600 points per year, worth roughly $54 to $81. The $69 annual fee on the Plus card wipes out most of that gain. Add in the opportunity cost of not using a 2% cash-back card, and you are in the red.

The card also costs you money if you accumulate points but never redeem them. Southwest points do not expire as long as your account stays active, but if you stop flying Southwest and let the points sit, they have no value. You are paying an annual fee for a benefit you do not use.

If you fly a different airline most of the time and only occasionally take Southwest, a co-branded card for your primary airline makes more sense. Spreading your spending across multiple airline cards dilutes the rewards on each one and multiplies the annual fees.

How to decide: the annual spending test

Calculate your annual spending on the card and multiply by 0.01 (since you earn 1 point per dollar). Then multiply that by 0.015 (the high end of what a point is worth). Subtract the annual fee. If the result is positive, the card pays for itself through everyday spending alone.

Example: You spend $8,000 per year on the card. That is 8,000 points, worth roughly $120 at 1.5 cents per point. Minus the $69 annual fee on the Plus card, you net $51 per year. That is worth it, but only barely—and only if you actually fly Southwest and redeem those points.

If you spend $12,000 per year on the card, you earn 12,000 points worth roughly $180, netting $111 after the fee. That is a clearer win. But if you spend $3,000 per year, you earn 3,000 points worth roughly $45, and the $69 fee leaves you $24 in the hole.

The sign-up bonus strategy: one year and out

Many people use Southwest cards strategically: open the card, meet the spending requirement to earn the sign-up bonus, book a flight with the bonus points, then cancel before the second annual fee posts. This approach lets you capture the bonus without paying multiple years of fees.

If you do this, the card is almost always worth it. A 50,000-point bonus is worth $750 to $1,125, and you only pay the $69 or $99 fee once. You come out ahead by $650 to $1,000, minus any taxes or fees on the flight you book.

The downside is that canceling and reopening cards can affect your credit score slightly, and Chase may not approve you for another Southwest card if you open and close them too frequently. But if you fly Southwest every few years and want to offset the ticket cost, this is a legitimate way to use the card.

Frequently Asked Questions

Can I use Southwest points on airlines other than Southwest?

No. Southwest points can only be redeemed for Southwest flights, seat upgrades, or gift cards. If you fly multiple airlines, a general rewards card that earns cash back or points you can transfer to any airline is more flexible.

What happens to my points if I cancel the card?

Your points stay in your Southwest Rapid Rewards account and do not disappear. You can still use them to book flights even after you cancel the card. The account stays active as long as you have activity (a flight or point redemption) at least once every 24 months.

Is the Premier card worth the extra $30 per year?

Only if you fly Southwest at least twice per year and check bags both times, or if you value priority boarding. The 6,000-point anniversary bonus covers most of the extra fee, so the Premier card is a better long-term choice if you keep it for multiple years and fly Southwest regularly.

How do I know what my points are worth?

Southwest points are worth different amounts depending on the flight. A $100 flight might cost 6,000 points, while a $300 flight might cost 15,000 points. You can see the exact point cost for any flight when you search on Southwest's website. Divide the point cost by the dollar price to see what each point is worth for that specific flight.

Should I get the card if I only fly Southwest once every two years?

No. One flight every two years does not generate enough points to cover the annual fee. You would be better off booking that one flight with cash or points from a sign-up bonus you earned by opening the card specifically for that trip, then closing it before the next fee posts.