What the Southwest Airlines Visa card does
The Southwest Airlines Visa card is a co-branded credit card issued by Chase that earns points toward Southwest flights instead of cash back. Every dollar you spend earns points, and those points convert directly into Southwest flight bookings. You also get a sign-up bonus of points after you meet a spending threshold in the first few months — usually enough for a free round-trip flight.
The card comes in three versions: the Southwest Rapid Rewards Plus, the Southwest Rapid Rewards Premier, and the Southwest Rapid Rewards Business. The main differences are the annual fee, the sign-up bonus size, and the perks that come with the card itself (like free checked bags or priority boarding). If you fly Southwest regularly or plan to, the points and perks can offset the annual fee. If you don't, the card's value depends entirely on whether you'll actually use the points before they expire.
Key Takeaways
- The Southwest Visa card earns one point per dollar spent, with a sign-up bonus that typically covers one or two round-trip flights if you meet the spending requirement.
- The card charges an annual fee that ranges from $69 to $99 depending on which version you choose, and that fee renews every year you keep the card open.
- Cardholders get two free checked bags on every Southwest flight, which alone can save you $60 to $70 per round trip compared to paying bag fees.
- Points never expire as long as your account stays open and active, but the card itself must be used at least once every 12 months or Chase may close it.
- You can transfer points to a companion, but you cannot sell them or convert them to cash — they only work for Southwest bookings.
How points work and what they're worth
One point equals one cent toward a Southwest flight when you book through the Southwest website. A flight that costs $200 in cash will cost 20,000 points. The actual value of a point fluctuates because Southwest prices flights dynamically — the same route might cost 15,000 points on a Tuesday and 25,000 points on a Friday, just like cash prices do.
Points are most valuable on expensive flights or during peak travel times, when the cash price is high but the point price stays the same. On a $400 flight, 20,000 points is worth 2 cents per point. On a $150 flight, the same 20,000 points is worth only 0.75 cents per point. This means the card works best if you fly routes or times that are normally expensive.
You earn points on every purchase — groceries, gas, utilities, everything. Some cards offer bonus points in certain categories (restaurants, travel, etc.), but the Southwest card does not. It's a flat-rate card: one point per dollar, no matter what you buy. This simplicity is useful if you don't want to track bonus categories, but it means you earn less than cards that offer 2x or 3x points in popular spending categories.
The annual fee and whether it pays for itself
The Southwest Rapid Rewards Plus charges $69 per year. The Premier version charges $99 per year. Both versions waive the fee for the first year, so you don't pay anything in year one. Starting in year two, the fee posts to your account automatically on your card anniversary.
The free checked bags benefit is the main way the fee pays for itself. Southwest charges $35 for the first checked bag and $45 for the second on most flights. If you fly round-trip once per year, that's $70 in bag fees you avoid — which already covers the $69 annual fee on the Plus card. If you fly twice per year, you save $140, which covers the fee on either version and leaves you ahead.
If you don't fly Southwest at all, or if you only fly once every two years, the annual fee is a pure cost. The card only makes financial sense if you plan to use the free bags or redeem the points you earn. Many people keep the card open just for the checked bag benefit even if they don't actively use it for everyday spending.
Sign-up bonuses and how to reach them
The sign-up bonus is typically 40,000 to 75,000 points, depending on which version you explore for and current promotions. Chase changes these offers frequently, so the exact number varies. You earn the bonus after you spend a certain amount — usually $1,000 to $2,000 — within the first three months of opening the account.
A 40,000-point bonus is roughly equivalent to one round-trip flight on a typical route. A 75,000-point bonus is closer to two round-trip flights or one longer flight. The actual value depends on which routes you fly and when you travel, since point prices vary by flight.
To reach the spending requirement, you can use the card for regular bills and purchases you were already planning to make. Some people accelerate spending by paying taxes, insurance, or other large bills with the card (though some billers charge a fee for credit card payments). You don't need to spend money you wouldn't otherwise spend — just redirect your normal spending to the card for three months.
Comparing the three versions
| Feature | Rapid Rewards Plus | Rapid Rewards Premier | Rapid Rewards Business |
|---|---|---|---|
| Annual Fee | $69 | $99 | $99 |
| First-Year Fee | Waived | Waived | Waived |
| Typical Sign-Up Bonus | 40,000 points | 60,000–75,000 points | 60,000–75,000 points |
| Free Checked Bags | 2 per flight | 2 per flight | 2 per flight |
| Priority Boarding | No | Yes | Yes |
| Companion Pass Bonus | No | Yes (after $25k spend) | Yes (after $25k spend) |
| Who It's For | Occasional Southwest flyers | Frequent Southwest flyers | Business owners or self-employed |
The Plus card is the entry point. It has the lowest annual fee and a smaller sign-up bonus, making it the least expensive option if you fly Southwest a few times per year.
The Premier card costs $30 more per year but includes priority boarding (which means you board earlier and get better seat selection) and a Companion Pass bonus after you spend $25,000 in a calendar year. The Companion Pass lets one person fly free with you on every Southwest flight for a year — a significant benefit if you travel with a partner regularly. The higher sign-up bonus on the Premier also makes up some of the extra annual fee.
The Business card is identical to the Premier in benefits but is designed for business owners or self-employed people who want to separate business and personal spending. It reports to business credit bureaus instead of personal ones, though Chase still pulls your personal credit report when you explore.
When the card makes sense and when it doesn't
The Southwest Visa card is worth keeping if you fly Southwest at least once per year and want to avoid checked bag fees. The free bags alone typically cover the annual fee, and any points you earn on everyday spending are a bonus on top of that.
The card is also worth considering if you fly Southwest two or more times per year, because the points you earn on regular spending can reduce or eliminate the cost of future flights. A person who spends $30,000 per year on the card and flies Southwest twice annually will earn 30,000 points from regular spending plus the sign-up bonus — enough for one or two additional flights depending on the routes.
The card is not a good fit if you don't fly Southwest, or if you fly Southwest so rarely (once every three years or less) that the annual fee outweighs the value of the free bags and points. In that case, a general cash-back card or a different airline card would be more useful.
The card is also less valuable if you fly airlines other than Southwest. Points only work for Southwest bookings, so if you're split between multiple airlines, you'll earn points on a card you can't fully use.
How to use points and what happens to them
You redeem points by logging into your Southwest account and booking a flight through the Southwest website. You can book any available flight — there are no blackout dates, and you don't need to book far in advance. You can also use points to book a companion ticket (a second ticket for someone else on the same flight) or to upgrade your seat.
Points never expire as long as your Rapid Rewards account stays active. Your account stays active as long as you have account activity — which includes earning points, redeeming points, or flying Southwest — at least once every 24 months. If your account goes inactive for two years, Southwest may close it and you'll lose the points. Keeping the credit card open and using it occasionally is the easiest way to keep your account active.
You can transfer points to another person's Rapid Rewards account, but you cannot sell them, convert them to cash, or use them with other airlines. Once you close the credit card, you keep the points in your Rapid Rewards account — closing the card doesn't erase them. However, if your Rapid Rewards account becomes inactive, the points will eventually expire.
Interest rates, fees, and credit impact
The Southwest Visa card charges a standard variable interest rate on balances you don't pay in full. The rate varies based on your creditworthiness and current market conditions, but it typically ranges from 18% to 27% APR. This is normal for rewards cards — they tend to have higher interest rates than basic cards because the issuer is betting that rewards users will pay in full and never carry a balance.
The card charges a foreign transaction fee of 3% if you use it outside the United States. There are no other fees beyond the annual fee — no late fees, no over-limit fees, or other penalties — as long as you pay on time and stay within your credit limit.
Opening a new credit card will temporarily lower your credit score by a few points because Chase pulls your credit report and adds a new account to your history. This impact usually fades within a few months. If you're planning to explore for a mortgage, car loan, or other major credit product in the next three to six months, it's worth waiting to open this card until after you've completed that process.
Frequently Asked Questions
Do I have to use the card for everyday spending to make it worth it?
No. The free checked bags alone typically cover the annual fee if you fly Southwest once per year. You can open the card, use it for one purchase to keep the account active, and still come out ahead. However, using it for regular spending you were already planning to do means you earn points toward future flights at no extra cost.
What happens if I close the card?
Closing the card stops you from earning new points, but you keep the points you've already earned in your Rapid Rewards account. You can still redeem them for flights. However, if your Rapid Rewards account becomes inactive (no activity for 24 months), Southwest may close it and the points expire. Keeping the card open is the easiest way to keep your account active.
Can I use points if I'm not flying myself?
Yes. You can book a flight for someone else using your points, or you can transfer your points to another person's Rapid Rewards account and they can book their own flight. You cannot sell the points or give them to someone who doesn't have a Rapid Rewards account.
Is the sign-up bonus worth the annual fee?
Usually yes. A 40,000-point bonus is worth roughly $400 to $600 depending on the flights you book, and the annual fee is $69 to $99. Even if you never use the card again after the first year, the bonus typically covers the fee. The free checked bags in year one also add value.
What credit score do I need to explore?
Chase typically approves applicants with a credit score of 670 or higher, though approval is not may provide at any score. The higher your score, the better your chances and the lower your interest rate will be if you carry a balance. You can check your credit score for free through your bank or a service like Credit Karma before you explore.