Is a Southwest Credit Card Worth It?

Alongside its colorful aircraft and quirky boarding process, Southwest Airlines has long been known for offering free checked bags and flexible change and cancellation policies. But in March 2025, the airline announced sweeping changes to its fare classes, seating rules, loyalty program and more.

This upheaval has impacted the value of Southwest Rapid Rewards credit cards, making them more useful to some flyers and less useful to others. Whether you're an existing cardholder or thinking about applying, here's what to consider.

Comparing Southwest Airlines cards

Southwest offers three personal credit cards and two business credit cards, all of which are issued by Chase and operate on the Visa network. Some benefits are available to all Southwest cardholders, while others are available only on Southwest credit cards with higher annual fees. Here are some highlights:

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.

Southwest business credit cards

All Southwest cardholders get their first checked bag free so long as their Rapid Rewards account number is provided at booking. That policy includes up to eight additional passengers on the same reservation and applies whether you pay with cash or points.

Southwest credit cards all offer bonus points on your account anniversary and increased earning rates for Southwest purchases. Most cards also allow cardholders to earn Tier Qualifying Points (TQPs) toward Southwest elite status by spending on their card. Those benefits vary by card and tend to be better on cards with higher annual fees.

With the airline ditching open seating in favor of assigned seats, Southwest credit cards will offer a range of seat selection benefits beginning in late summer of 2025. All cardholders will be able to choose a Standard seat within 48 hours of departure, while some can instead choose a Preferred or Extra Legroom seat. Those with the Southwest Rapid Rewards® Priority Credit Card or the Southwest® Rapid Rewards® Performance Business Credit Card can additionally select a Standard or Preferred seat at the time of booking. Like the free checked bags, these benefits can be used for up to eight additional passengers on the same reservation.

» Learn more: The best airline credit cards right now

Southwest cards are best suited to semi-frequent flyers

The value of a Southwest credit card depends on your travel tendencies. It’s most likely to be worthwhile if you fly Southwest regularly, but not so often that you earn A-List status, which makes some card benefits redundant. Assuming you fit that description, here are several scenarios where a Southwest credit card should serve you well.

You routinely check bags on Southwest

Southwest now charges $35 per person for the first checked bag except for Business Select fares. Since those fees apply to one-way travel, you could offset the annual fee of $99 for the Southwest Rapid Rewards® Plus Credit Card with a single round-trip flight by yourself. If you would typically check bags on Southwest for three or more round-trip flights each year, then you can justify paying the annual fee for any Southwest card solely on the basis of avoiding checked bag fees.

The math tilts heavily in your favor if you tend to fly with others on the same reservation because the benefit applies to as many as eight additional passengers. Two passengers checking bags each way on a round trip could save $140 or, as an extreme example, a party of nine each checking a bag could save $315 on a single one-way flight.

Note that the free first checked bag applies to standard-sized baggage only. Additional charges still apply for oversized or overweight bags, so this benefit loses value if you mostly check bags that exceed standard size and weight limits.

You put a premium on seat selection

The shift away from open seating means Southwest passengers will have to pay extra for the best seats (or to avoid the worst ones). Beginning in the third quarter of 2025 for flights in 2026 and beyond, the cheapest Basic fares will come with assigned Standard seats, which are seats with standard legroom in the back of the plane. Only more expensive fares come with seat selection privileges, as well as the opportunity to sit in a Preferred or Extra Legroom seat.

However, Southwest cardholders will get seat selection benefits even when booking Basic fares. At a minimum, all Southwest cards will allow you to select a Standard seat (when available) within 48 hours of departure, so you have a better chance of staying out of the middle and getting your choice of aisle or window. Seat selection benefits improve on cards with higher annual fees: For example, Southwest Rapid Rewards® Priority Credit Card holders can choose a Standard or Preferred seat at booking, or they can upgrade to an Extra Legroom seat within 48 hours of departure.

If you’re picky about where you sit, then getting a Southwest credit card is an effective way to limit seat selection charges.

You consistently put Southwest Rapid Rewards points to good use

Southwest credit cards all offer anniversary bonus points ranging from 3,000 to 9,000 points each year, with higher bonuses corresponding to higher annual fees. Rapid Rewards points are worth 1.3 cents apiece in NerdWallet’s points and miles valuations; by that metric, cardholders can receive $39 to $117 worth of points each year from anniversary bonuses.

That isn’t enough value to offset annual fees entirely, but depending on which Southwest card you have, you’ll recoup between 56% and 78% of the cost of your annual fee automatically. So long as you can reliably get a good return from booking Southwest awards, the anniversary bonuses lower the net cost of being a cardholder.

You routinely make in-flight purchases

With no snacks or meals available to buy on Southwest flights, in-flight purchases are limited to Wi-Fi ($8 per flight) and alcoholic beverages ($7-$9 each). Most Southwest cards (including authorized user cards) offer 25% back on in-flight purchases, which comes in the form of statement credits on your account. Assuming the average drink costs you $8, you could get $2 back on each in-flight drink purchase. Those small savings add up to a substantial rebate for frequent flyers.

The Southwest® Rapid Rewards® Performance Business Credit Card doesn’t offer the 25% back benefit, but it does offer up to 365 $8 credits each year to cover the cost of in-flight Wi-Fi, which makes it compelling for Southwest flyers who want to stay connected in the air. If you would typically pay for Wi-Fi on at least 12 flights in a year (averaging one flight per month), then you can offset nearly half the card’s annual fee of $299 with Wi-Fi credits alone.

One Southwest Airlines credit card stands out

While you can come out ahead with any of the Southwest credit cards, the Southwest Rapid Rewards® Priority Credit Card offers the clearest value. In addition to an anniversary bonus of 7,500 points (worth $97.50, according to NerdWallet’s valuation), the Southwest Rapid Rewards® Priority Credit Card comes with an annual $75 Southwest travel credit that applies automatically toward airfare and most other Southwest purchases.

For anyone who would typically book a few Southwest flights each year (including some cash fares and some awards), those two benefits alone more than offset the annual fee of $229. Any additional value you get from other benefits is icing on the cake.

Southwest cards aren’t a good fit for everyone

If you’re a semi-regular Southwest flyer and you check one or more of the boxes above, then a Southwest credit card is likely to be useful to you. Otherwise, the value of getting a Southwest card is murkier. Consider alternatives if:

• You don’t fly Southwest at least a few times each year, and don’t plan to start.

• You already have A-list or A-List Preferred status, which offers many of the same benefits.

• You want to redeem rewards with a variety of airlines and hotels rather than just one.

In all three cases, you’ll likely be better served by another travel rewards card like the Chase Sapphire Preferred® Card or the Capital One Venture Rewards Credit Card.