Deciding if a credit card is "good" is a lot like deciding if a pair of shoes is "good" – it completely depends on your needs and how you plan to use them! A credit card that's perfect for a frequent international traveler might be a terrible fit for someone who only drives cross-country once a year. So, let's dive deep into the world of the Southwest Airlines credit card and see if it's the right fit for you.
How Good is the Southwest Airlines Credit Card? A Comprehensive Guide
Southwest Airlines credit cards, issued by Chase, are incredibly popular among loyal Southwest flyers. They offer a unique set of benefits, especially for those aiming for the coveted Companion Pass. But are they worth the annual fee? Let's break it down step-by-step.
Step 1: Are you a Southwest Airlines loyalist? Engage with this crucial question first!
Before we even get into the nitty-gritty details, I want you to honestly ask yourself: How often do you fly Southwest Airlines?
Do you live near a Southwest hub?
Is Southwest your go-to airline for leisure or business travel?
Do you appreciate their unique "open seating" policy and the "two free checked bags" (though note, this policy is changing for bookings made after May 28, 2025, with cardholders still receiving a benefit)?
If your answer to these questions is a resounding "Yes!" or "Often!", then read on. If you rarely fly Southwest, or prefer to shop for the cheapest flights regardless of the airline, then a general travel rewards card might be a much better fit for your spending habits and travel goals. Southwest cards are highly specialized for Southwest flyers.
Step 2: Understanding the Southwest Credit Card Family
Chase offers several personal and business Southwest Airlines credit cards, each with varying annual fees and perks. The most common personal cards are:
Southwest Rapid Rewards® Plus Credit Card: This is the entry-level option, typically with the lowest annual fee.
Southwest Rapid Rewards® Premier Credit Card: A mid-tier card offering more benefits than the Plus.
Southwest Rapid Rewards® Priority Credit Card: The top-tier personal card with the most extensive perks.
There are also business versions, such as the Southwest® Rapid Rewards® Performance Business Credit Card, which can be excellent for small business owners.
It's important to note that while the specific welcome offers and annual fees can fluctuate, the core benefits generally remain consistent. Always check the official Chase and Southwest Airlines websites for the most up-to-date information.
Step 3: Key Benefits and Why They Matter
Now, let's unpack the core advantages of holding a Southwest Airlines credit card.
Sub-heading: Rapid Rewards Points Earning Power
All Southwest credit cards allow you to earn Rapid Rewards points on your spending. These points are typically valued around 1.3-1.5 cents per point when redeemed for Southwest flights, which is a relatively competitive valuation for airline points.
Southwest Purchases: You'll earn bonus points on Southwest Airlines purchases, including flights, in-flight purchases, gift cards, and vacation packages. The earning rate varies by card (e.g., 2X points on the Plus, 3X on Premier and Priority, 4X on the Performance Business card).
Bonus Categories: Most cards also offer bonus points on other common spending categories like Rapid Rewards hotel and car rental partners, local transit and commuting (including rideshares), internet, cable, phone services, and select streaming services.
Everyday Spending: You'll earn 1 point per dollar on all other purchases.
Sub-heading: The Legendary Companion Pass
This is arguably the biggest draw for many Southwest credit cardholders. The Companion Pass allows a designated person to fly with you for free (plus taxes and fees, which are minimal, usually $5.60 one-way) on any Southwest flight you book, whether with cash or points. It's valid for the remainder of the calendar year you earn it, plus the entire following calendar year.
To qualify for the Companion Pass, you need to either:
Fly 100 qualifying one-way flights in a calendar year, OR
Earn 135,000 qualifying Rapid Rewards points in a calendar year.
Points earned from Southwest credit card welcome bonuses and spending count towards this 135,000-point threshold. This makes credit card sign-up bonuses a popular strategy for earning the Companion Pass quickly. Many people will strategically open one personal and one business Southwest card to combine their welcome bonuses and reach the point requirement.
Sub-heading: Annual Anniversary Bonus Points
Every year you renew your Southwest credit card, you'll receive a chunk of Rapid Rewards points. This is a fantastic perk that helps offset the annual fee:
Plus Card: 3,000 anniversary points.
Premier Card: 6,000 anniversary points.
Priority Card: 7,500 anniversary points.
Sub-heading: Travel Benefits and Perks
Southwest credit cards come with a variety of travel-centric benefits that enhance your flying experience:
Free Checked Bags: Crucially, for flights booked on or after May 28, 2025, Southwest is implementing bag fees. However, Southwest credit cardholders (and up to eight companions on the same reservation) will still receive one free checked bag. This can represent significant savings if you typically check luggage.
EarlyBird Check-In® Reimbursements: The Plus and Premier cards offer reimbursement for 2 EarlyBird Check-In purchases each anniversary year. This automatically checks you in 36 hours before your flight, improving your boarding position.
Upgraded Boardings: The Priority card offers reimbursement for up to 4 upgraded boardings (A1-A15) each anniversary year, when available. This is a highly valuable perk for those who want to ensure a prime boarding spot.
Annual Southwest Travel Credit: The Priority card offers a $75 annual Southwest travel credit, further reducing its effective annual fee.
In-flight Purchase Savings: Most cards offer 25% back on eligible in-flight purchases (drinks and Wi-Fi).
Tier Qualifying Points (TQPs): Higher-tier cards like the Premier and Priority allow you to earn TQPs through spending, helping you achieve A-List or A-List Preferred status faster. This elite status offers benefits like priority boarding, bonus points on paid flights, and free same-day standby.
No Foreign Transaction Fees: The Premier and Priority cards do not charge foreign transaction fees, making them suitable for international use, even though Southwest primarily flies domestically. (The Plus card does have a 3% foreign transaction fee).
Step 4: Potential Drawbacks and Considerations
While Southwest credit cards offer significant value, they aren't without their downsides.
Sub-heading: Annual Fees
All Southwest credit cards come with an annual fee, ranging from around $69 for the Plus card to $149 for the Priority card. While the anniversary points and other benefits often offset these fees, it's an upfront cost to consider.
Sub-heading: Limited Airline Flexibility
This is perhaps the biggest drawback. Southwest Rapid Rewards points can only be redeemed for Southwest flights (or through their "More Rewards" portal for other travel, but usually at a lower value). If you prefer to fly a variety of airlines or want to leverage points for premium cabin international travel, a more flexible travel rewards card (like those that earn transferable points) would be a better choice. Southwest does not partner with other airlines for award redemptions.
Sub-heading: Dynamic Pricing for Awards
Southwest uses dynamic pricing for award flights. This means the number of points required for a flight is directly tied to the cash price of that flight. While this means no blackout dates, it also means that point values can fluctuate, and you'll need more points for more expensive flights.
Sub-heading: No Lounges or Premium Cabins
Southwest Airlines does not offer premium cabins (like First or Business Class) or airport lounges. If these are important aspects of your travel experience, Southwest (and its co-branded cards) might not be the best fit.
Step 5: Is it "Good" For You? A Decision Guide
To summarize, the Southwest Airlines credit card is exceptionally good for a specific type of traveler:
The Southwest Enthusiast: If you live in a city with strong Southwest service, enjoy their unique flying experience, and frequently fly with them for leisure or business, this card can save you significant money and enhance your travels.
The Companion Pass Seeker: If earning the Companion Pass is a major goal, a Southwest credit card is almost a necessity to help you accumulate the required points efficiently.
The Budget-Conscious Traveler Who Checks Bags: With the changes to Southwest's free checked bag policy, the benefit offered by the credit card (one free checked bag) becomes even more valuable for those who typically check luggage.
It might not be the best choice if:
You rarely fly Southwest Airlines.
You prioritize flying in premium cabins or want access to airport lounges.
You want maximum flexibility to redeem points across various airlines and travel partners. In this case, a general travel rewards card (like the Chase Sapphire Preferred or Chase Sapphire Reserve, which do allow transfers to Southwest) might be more suitable.
You are looking for a card with no annual fee.
Ultimately, the "goodness" of the Southwest Airlines credit card is directly proportional to your loyalty to Southwest and your ability to maximize its specific benefits.
10 Related FAQ Questions
Here are some frequently asked questions about the Southwest Airlines credit card, with quick answers:
How to earn Companion Pass with a Southwest credit card?
To earn the Companion Pass, you need 135,000 qualifying Rapid Rewards points in a calendar year. Points earned from Southwest credit card welcome bonuses and spending count towards this goal. Many people apply for one personal and one business Southwest card to meet the requirement.
How to use Southwest Rapid Rewards points?
Southwest Rapid Rewards points can primarily be redeemed for flights on Southwest Airlines, with no blackout dates. The number of points required is tied to the cash price of the flight.
How to get free checked bags with Southwest credit card?
Southwest credit cardholders (and up to eight companions on the same reservation) receive one free checked bag for flights booked on or after May 28, 2025. Simply use your Southwest credit card to pay for your flight.
How to upgrade boarding with a Southwest credit card?
The Southwest Rapid Rewards Priority Credit Card offers reimbursement for up to four upgraded boardings (A1-A15) per year. You typically purchase these at the gate on the day of travel. The Plus and Premier cards offer EarlyBird Check-In reimbursements, which helps improve your boarding position.
How to transfer Chase Ultimate Rewards to Southwest?
Yes, Chase Ultimate Rewards points can be transferred to Southwest Rapid Rewards at a 1:1 ratio. However, these transferred points do not count towards earning the Companion Pass or A-List status.
How to determine the value of Southwest Rapid Rewards points?
Southwest Rapid Rewards points are generally valued at around 1.3 to 1.5 cents per point when redeemed for Southwest flights. Their value is dynamic, tied to the cash price of the flight.
How to avoid foreign transaction fees with Southwest credit cards?
The Southwest Rapid Rewards Premier and Priority Credit Cards do not charge foreign transaction fees. The Plus card, however, does have a 3% foreign transaction fee.
How to get A-List status with a Southwest credit card?
Higher-tier Southwest credit cards (Premier and Priority) allow you to earn 1,500 Tier Qualifying Points (TQPs) for every $5,000 spent, which helps you reach the 35,000 TQPs needed for A-List status faster.
How to choose between Southwest personal credit cards?
Choose based on your flying frequency and desired perks. The Plus is for infrequent flyers, Premier for more regular travelers seeking a few extra perks and no foreign transaction fees, and Priority for frequent flyers who can maximize the annual travel credit and upgraded boardings.
How to find the current Southwest credit card sign-up bonus?
The current sign-up bonus offers are regularly updated on the official Chase Bank website for Southwest credit cards. It's always best to check there for the most recent promotions.
