Is a Southwest Credit Card Worth It?

Southwest Airlines is one of the most popular domestic airlines in the U.S. — and for good reason. Travelers get two checked bags for free and can cancel or change tickets at any time without incurring fees. If you're going to fly Southwest on a regular basis, you might be asking yourself, "Is the Southwest credit card worth it?"

Here, we'll share what credit cards are available and give guidance on how to determine for yourself if a Southwest credit card is worth it.

» Learn more: The best airline credit cards right now

Available Southwest credit cards

Chase and Southwest Airlines have partnered to offer several Southwest credit cards, including three personal cards and two for business owners. Welcome bonus offers for these cards change periodically throughout the year.

Let's a take a closer look at which cards are available, plus their current sign-up offerings.

Personal Southwest credit cards

Southwest business credit cards

Knowing which card is right for you takes a little digging. Consider which card has benefits that meet your needs, if that card fits your budget, and if redeeming its perks feels manageable.

» Learn more: Which Southwest credit card should I choose?

How Southwest Rapid Rewards credit cards work

When you apply for a Southwest credit card, your card will be attached to your Southwest Rapid Rewards loyalty number. If you don't already have one, a new member number will be created for you.

You'll earn a welcome bonus if you meet the minimum spending requirements as a new cardholder. All of your purchases will earn points as well. Depending on which card you applied for, you'll receive more points for spending in certain categories, like dining or Southwest purchases.

All of the points you earn with your Southwest credit card are redeemable for any seat on any Southwest flight.

Each Southwest Rapid Rewards point is worth about 1.5 cents on average, according to NerdWallet’s most recent valuations. The number of points required to book a flight depends on the cash price of the flight and which ticket type you buy (Wanna Get Away, Wanna Get Away Plus, Anytime or Business Select). Taxes and fees are extra and must be paid in cash.

Southwest points never expire as long as your loyalty account remains open. If you close your credit card, all points already transferred to Southwest are yours to keep.

» Learn more: How does a Southwest Rapid Rewards credit card work

How to determine if a Southwest card is worth it

While Southwest credit cards do offer useful benefits, each one charges an annual fee. Before paying that annual fee, you need to decide if the benefits promised are worth the annual fee you're paying.

Understand the value of the annual points bonus

Every Southwest cardholder earns bonus Rapid Rewards points when they renew their card each year. The number of points varies based on which card you have as follows:

While the value received doesn't have to cover the annual fee to be considered worth it, understanding how these bonuses help offset some of the cost of a card is useful as you're calculating the card’s value.

» Learn more: 5 top credit cards with anniversary bonuses

Predict your annual spend in bonus categories

For flights paid for in cash (not points), you’ll not only earn points by flying, but also by spending. When you use your Southwest credit card, you’ll earn bonus points on every Southwest purchase.

While most Southwest cards earn 3x on these purchases, the Southwest® Rapid Rewards® Performance Business Credit Card earns 4x on Southwest purchases, as well as 3x on Rapid Rewards hotel and rental car partners.

Being realistic about how much you fly (and spend on) Southwest can help you determine whether the card will be worth it for you.

Aim to earn the Companion Pass

The Southwest Companion Pass is one of the most coveted airline benefits. When you've earned this perk, your designated companion flies free with you on any flight. You just have to pay the taxes and fees, which start at $5.60 each way. This benefit works on both paid and reward flights. And you can change your designated companion up to three times annually.

Outside of passes earned through limited-time welcome bonus offers, points earned from a new card welcome bonus and all of your Southwest credit card spending counts toward the total needed to earn the Companion Pass, which is typically 135,000 points. Many travelers can hit that mark with the combination of a sign-up bonus, everyday spending and a handful of paid flights.

» Learn more: The pros and cons of the Southwest Companion Pass

Spend toward A-List status

You can earn up to 15,000 A-List Tier Qualifying Points (TQPs) each year via spending on certain Southwest credit cards.

You'll get a 1,500 TQP bonus for every $5,000 spent using the Southwest Rapid Rewards® Premier Credit Card, Southwest Rapid Rewards® Priority Credit Card and the Southwest® Rapid Rewards® Performance Business Credit Card. You earn the same TQPs bonus for every $10,000 spent on the Southwest® Rapid Rewards® Premier Business Credit Card.

You need to either fly enough qualifying flights or earn enough TQPs to snag A List or A List Preferred Status. If you spend $15,000 on a qualifying card in a year, you will net 4,500 extra TQPs towards the 35,000 minimum needed for A List status.

Tier qualifying points (TQPs) are earned for flights booked on Southwest (the pricier the flight, the more points you earn) and by spending on Southwest’s credit cards.

(Editor's note: Southwest recently announced some significant changes coming to the Rapid Rewards program, including lower requirements for A-List status in 2024. Read more on that here.)

» Learn more: Things to know before getting a Southwest credit card

Who should skip a Southwest credit card?

While a Southwest credit card can make sense for the airline's most frequent fliers, not everyone is a wise candidate for these cards. Keep shopping around if:

• You don't live near or fly often to a Southwest hub. Having access to frequent (and affordable) Southwest flights will make or break your satisfaction with an airline-specific credit card.

• You prefer to optimize flight selection for cost, not benefits. If you tend to select the most affordable flight to your destination regardless of carrier, then a more general travel credit card will likely better serve your needs.

• You want to fly in style. Southwest doesn't offer premium cabins for its flights, nor does it offer dedicated lounges to its most prestigious members. If these conveniences are essential to you, it may not be worth going all-in on Southwest loyalty.

» Learn more: How do airline miles work?

If you're considering a Southwest credit card

For people who love flying Southwest, getting a Southwest credit card is a wise choice. You'll earn valuable points on every purchase, plus additional points every year that you renew your card. While higher-end Southwest cards have larger annual fees, the extra benefits they offer generally make them a better deal if you fly Southwest on a regular basis.

If you're more of a free agent when it comes to travel, apply for a credit card that earns Chase Ultimate Rewards® instead. Ultimate Rewards® points transfer on a 1:1 basis to Southwest Rapid Rewards. Plus, they have greater flexibility because the points can be redeemed to fly with other airlines, book hotels or reserve rental cars.