Whether a Southwest card makes sense depends on how often you fly Southwest and what you spend on other categories

A Southwest credit card is worth it if you fly Southwest multiple times a year and spend enough to earn back the annual fee through rewards. If you fly Southwest once a year or less, or if you rarely fly at all, the annual fee will likely cost you more than you gain. The real question is not whether the card is good in general — it is whether the card's specific rewards match your actual spending patterns.

Southwest cards come in several versions, each with a different annual fee and different earning rates. The most common are the Southwest Rapid Rewards Plus card and the Southwest Rapid Rewards Premier card. Both charge an annual fee, typically between $69 and $99 depending on which version you choose. Both also offer a sign-up bonus — usually 40,000 to 75,000 Rapid Rewards points — which can cover the first year's fee if you meet the spending requirement.

The core trade-off is straightforward: you pay an annual fee upfront, and you earn points on every purchase that you can redeem for Southwest flights. Whether that trade works in your favor depends on how many points you actually use and how much you would have spent anyway.

Key Takeaways

  • Southwest cards charge an annual fee of $69 to $99, so you need to earn enough points to cover that cost through flights you would actually take.
  • The sign-up bonus typically covers the first year's fee if you spend $1,000 to $2,000 in the first few months, but you still pay the fee in year two and beyond.
  • Southwest cards earn points fastest on Southwest purchases and dining, but earn at a lower rate on gas and groceries than some competing cards.
  • You break even on the annual fee only if you redeem enough points for at least one or two Southwest flights per year, depending on the card version.

How the sign-up bonus covers your first-year fee

When you open a Southwest card, the bank offers a sign-up bonus — typically 40,000 to 75,000 Rapid Rewards points — if you spend a certain amount in the first three months. That bonus alone is worth roughly $400 to $750 in Southwest flights, which is enough to cover the annual fee and leave you with points left over.

The catch is that this bonus only happens once. After you use it, you pay the annual fee every year without a bonus to offset it. This means the card only makes financial sense if you plan to keep it open for at least two years and earn enough points through regular spending to justify the ongoing fee.

If you think you will cancel after the first year, the sign-up bonus makes the card free for that year. But if you keep it, you need to earn back the fee through points on your everyday purchases.

Comparing earning rates across spending categories

Southwest cards earn points at different rates depending on what you buy. Most versions earn 2 points per dollar on Southwest purchases and dining, and 1 point per dollar on everything else. A few premium versions earn higher rates, but they also charge higher annual fees.

This earning structure matters because it means the card rewards you most for spending you probably already do — eating out and flying Southwest. If you rarely dine out or fly Southwest, the 1 point per dollar on other purchases is not competitive with cash-back cards, which often offer 1.5% to 2% cash back on all purchases with no annual fee.

The card also does not offer bonus categories for gas, groceries, or travel outside of Southwest. If those are your biggest spending categories, a different card — or no card at all — might save you money.

What it costs to break even on the annual fee

To break even on a $69 annual fee, you need to earn enough points to cover that cost. At the standard earning rate of 1 point per dollar on non-bonus purchases, you would need to spend roughly $6,900 per year on the card just to earn back the fee. That is a high bar if you are not a frequent Southwest flyer.

However, if you spend $1,000 per year on Southwest flights or dining (the 2-point categories), you earn 2,000 points, which is worth roughly $20 in flight value. You would then need to spend an additional $4,900 on other purchases to reach break-even. For someone who flies Southwest regularly and eats out often, this is realistic. For someone who flies once a year, it is not.

The math changes if you have a premium version of the card with a higher annual fee — you need to spend more to break even. It also changes if you earn a companion pass, which some Southwest cards offer after you hit a spending threshold. A companion pass lets someone fly free with you, which can be worth hundreds of dollars, but it requires hitting a high spending target.

How to know if you will actually use the rewards

The biggest mistake people make with airline cards is earning points they never redeem. Points have no value if they sit in your account unused. Before you open a Southwest card, be honest about how often you fly Southwest and whether you would actually book flights with the points you earn.

If you fly Southwest three or four times a year, the card almost certainly pays for itself. If you fly once a year, it probably does not. If you never fly Southwest but think you might someday, the card is not worth the annual fee — you are paying for a possibility, not a reality.

Also consider whether you would fly Southwest anyway or whether the card is tempting you to fly more often just to use the points. If the card causes you to take trips you would not otherwise take, you are not saving money — you are spending it.

Comparing Southwest cards to other airline and cash-back options

Southwest is not the only airline card available, and airline cards are not the only option. If you fly multiple airlines, a general travel card might earn points faster across all airlines. If you do not fly much at all, a cash-back card with no annual fee will almost always save you money.

A no-annual-fee cash-back card typically earns 1% to 2% cash back on all purchases. Over a year, that adds up to real money with zero annual cost. A Southwest card with a $69 fee needs to earn you at least $69 in flight value to break even — which means you need to spend enough and fly enough to make that happen.

If you are torn between a Southwest card and a general travel card, ask yourself: Do I fly Southwest specifically, or do I fly different airlines? If the answer is different airlines, a general travel card is probably better. If the answer is Southwest, then run the math on your actual spending and flying patterns.

When to cancel and when to keep the card

If you open a Southwest card for the sign-up bonus, you have a decision point when the first annual fee hits. At that moment, ask yourself: Did I use the points I earned? Will I fly Southwest again this year? If the answer to both is yes, keep the card. If the answer to either is no, cancel before the fee posts.

Some people keep a Southwest card open even in years when they do not fly, hoping to use it eventually. This is expensive. A $69 annual fee for a card you do not use is $69 wasted. If you are not flying Southwest in a given year, cancel the card and reopen it later if your travel plans change.

One exception: if you have a companion pass or are close to earning one, it might be worth keeping the card for another year to hit the spending threshold. A companion pass can be worth hundreds of dollars, so the annual fee is a small price to pay. But once the pass expires, reassess whether the card still makes sense.

Frequently Asked Questions

Do I have to spend a lot to get the sign-up bonus?

Most Southwest card sign-up bonuses require you to spend $1,000 to $2,000 in the first three months. That is a realistic target if you charge your regular bills to the card, but if you do not normally spend that much, you should not open the card just to chase the bonus. The bonus only makes sense if you would spend that amount anyway.

Can I earn a companion pass with a Southwest card?

Yes, some Southwest cards offer a companion pass after you spend a certain amount in a calendar year — usually $25,000 or more. A companion pass lets one person fly free with you for a year. If you hit that threshold, the card pays for itself many times over. But most people do not spend that much, so do not count on it.

What happens to my points if I cancel the card?

Your points stay in your Southwest Rapid Rewards account even after you cancel the card. You can still redeem them for flights. However, if your account sits inactive for 24 months, Southwest may close it and you could lose the points, so keep that in mind if you cancel and do not plan to fly soon.

Is the Southwest card better than a cash-back card with no annual fee?

It depends on your flying habits. If you fly Southwest three or more times a year and spend enough to earn back the annual fee, the Southwest card is probably better. If you fly less often or not at all, a no-annual-fee cash-back card will save you money because you avoid the fee entirely.

Can I use Southwest points for anything other than flights?

Southwest points are primarily for flights, but you can also use them to book hotels, rental cars, and other travel through the Southwest website. However, the value is usually lower than booking flights directly, so most people use points for flights only.