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 can use the card's benefits before they expire. The main value comes from the annual free flight (after you meet the spending requirement), checked baggage benefits, and bonus points when you sign up. If you fly Southwest once a year or less, or if you rarely check bags, the annual fee usually costs more than you'll save.

The decision hinges on three things: how much you spend to hit the bonus, whether you'll use the perks in the calendar year you earn them, and whether the annual fee ($69 to $99, depending on the card) aligns with what you actually get back. A card that sits unused in a drawer costs money every year.

Key Takeaways

  • Southwest cards charge $69 to $99 annually and require $2,000 to $4,500 in spending within the first three months to earn the sign-up bonus.
  • The annual free flight (Companion Pass card) or anniversary bonus points expire if you don't use them in the calendar year you earn them.
  • Free checked bags for you and one companion on every Southwest flight are the most consistent benefit, worth roughly $30 to $70 per round trip depending on how often you fly.
  • If you don't fly Southwest at least twice a year, the annual fee is unlikely to pay for itself through benefits alone.
  • Bonus points from sign-up offers are worth roughly 1 cent per point when redeemed for flights, so a 60,000-point bonus is worth about $600 in flight value.

The sign-up bonus and what it actually costs you

Southwest offers two main cards: the Southwest Rapid Rewards Plus and the Southwest Rapid Rewards Premier. Both require you to spend a set amount in the first three months to earn the sign-up bonus. The Plus card typically asks for $2,000 in spending; the Premier asks for $3,000 to $4,500 depending on the current offer. In exchange, you get 40,000 to 75,000 bonus points.

Those points are worth roughly 1 cent each when you redeem them for flights, though the value varies by route and travel date. A 60,000-point bonus is worth approximately $600 in flight value. However, you only realize that value if you actually book a flight. If you spend $2,000 on the card to hit the bonus and then don't fly, you've paid the annual fee for nothing.

The spending requirement matters too. If you don't normally spend $2,000 to $4,500 on a credit card in three months, you're either shifting spending from another card (which may have better rewards) or adding spending you wouldn't otherwise make. Either way, the bonus only makes sense if the flight value exceeds what you're giving up elsewhere.

Annual fees and what you get in return

The Southwest Rapid Rewards Plus charges $69 per year. The Premier charges $99. These fees hit your account every year on your anniversary date, not just once. You need to get at least that much value back from the card's benefits to break even.

The main benefit is free checked baggage for you and one companion on every Southwest flight. Southwest charges $35 for the first checked bag and $40 for the second on most routes. If you fly round-trip twice a year with a checked bag, that's $140 in baggage fees alone — already more than the annual fee. If you fly four times a year, the baggage benefit alone covers the fee several times over.

The Companion Pass card (Premier) also gives you an annual free flight or 10,000 bonus points on your anniversary. The Plus card gives 3,000 bonus points. These benefits expire on December 31 of the year you earn them, so you must use them before the year ends or they vanish. If you don't have a trip booked by November, you'll lose the benefit.

How to calculate whether the card pays for itself

Start with your annual Southwest spending. Count how many round-trip flights you take per year on Southwest, and whether you check bags. Multiply the number of trips by the baggage fee you'd normally pay ($35 per person per direction, or $70 per round trip for one person). That's your baggage savings.

Next, add the value of the anniversary benefit. The Premier's free flight or 10,000 points is worth roughly $100 to $150 depending on the route. The Plus's 3,000 points is worth about $30. Subtract the annual fee ($69 or $99) from your total benefits.

If the result is positive, the card pays for itself. If it's negative, the card costs you money. For example: two round trips per year with checked bags = $140 in baggage savings. Plus a $100 anniversary benefit. Minus $99 annual fee = $141 net value. The card works. But if you fly once a year with no checked bags, you save $0 on baggage, get a $100 anniversary benefit, and pay $99 — a net gain of $1, which is too thin to justify the risk that you'll forget to use the anniversary benefit.

The risk of expiring benefits and unused cards

Southwest's anniversary benefits expire on December 31 of the year you earn them. If you earn a free flight in January and don't book it by December 31, it disappears. The same applies to bonus points from the anniversary benefit. You cannot carry them forward or extend the deadline.

This creates a real cost if your travel plans are uncertain. If you open the card in March expecting to take a trip in October, but the trip gets cancelled, you lose the anniversary benefit. You still owe the annual fee. The card then costs you $69 to $99 for nothing.

Similarly, if you open a card, hit the sign-up bonus, and then don't use the card for a year, the annual fee still charges. You'll pay $69 or $99 to keep a card that's earning you no rewards because you're not using it. Set a phone reminder for your anniversary date so you know when the fee hits and can decide whether to keep the card or close it.

Comparing the Plus and Premier cards

The Southwest Rapid Rewards Plus costs $69 annually and gives 3,000 bonus points on your anniversary. The Premier costs $99 and gives either a free flight (valid for one year) or 10,000 bonus points. The Premier also includes a higher sign-up bonus in most offers.

The Premier makes sense if you fly Southwest at least three times a year and can reliably use the annual free flight. The free flight is worth $100 to $200 depending on the route, which covers most of the extra $30 annual fee. The Plus makes sense if you fly one to two times per year and want to keep costs down, or if you're uncertain about your travel plans and don't want to risk losing a high-value benefit.

Both cards earn 1 point per dollar spent on all purchases, with bonus categories for Southwest purchases and dining. The earning rate is identical. The difference is in the annual benefits and the fee.

When a Southwest card doesn't make sense

A Southwest card is not worth it if you fly other airlines more than Southwest, if you fly Southwest less than once per year, or if you never check bags. In those cases, the annual fee costs more than the benefits you'll actually use.

It's also not worth it if you can't reliably use the anniversary benefit before it expires. If your travel plans are unpredictable or you tend to book last-minute, the risk of losing a $100+ benefit is real. You'd be paying the annual fee for a benefit you might not be able to use.

If you do fly Southwest regularly but want to avoid the annual fee, consider whether you'd be better off with a no-fee rewards card that earns points on all purchases. You won't get free checked bags or the anniversary benefit, but you also won't pay $69 to $99 per year. The math depends on your specific travel frequency and spending.

How to use the card if you decide to open it

If you open a Southwest card, set a calendar reminder for 11 months after your approval date. This gives you one month to book a flight using your anniversary benefit before it expires on December 31. Don't wait until December to think about it.

Use the card for everyday spending if the 1 point per dollar rate is competitive with your other cards. If you have a card that earns 2% cash back on all purchases, the Southwest card's 1 point per dollar is weaker unless you value the points more highly than cash. Points are only valuable if you actually redeem them for flights.

Keep the card open for at least one year so you can use the anniversary benefit. After that, decide whether the annual fee is still worth it based on your expected travel in the coming year. If you won't fly Southwest again, close the card before the next annual fee hits.

Frequently Asked Questions

Can I get the sign-up bonus again if I close the card and reopen it later?

Southwest's rules typically require you to wait at least 24 months after closing a card before you can earn the sign-up bonus again. Some offers have longer waiting periods. Check the current terms before closing a card if you think you might want to reopen it.

What happens to my points if I close the Southwest card?

Your points stay in your Southwest Rapid Rewards account even after you close the card. You can still redeem them for flights. The card itself is just the tool you use to earn points; closing it doesn't erase your balance.

Is the free flight from the anniversary benefit a real flight or just points?

The Premier card's anniversary benefit is a free flight certificate, not points. You can book any Southwest flight within the continental U.S., Hawaii, or the Caribbean for free, as long as the flight is available. Blackout dates do not apply, but you must book it by December 31 of the year you earn it.

Do I have to spend money on the card after I hit the sign-up bonus?

No. You can hit the sign-up bonus, collect the points, and never use the card again. However, the annual fee will still charge on your anniversary date. If you don't plan to use the card regularly, close it before the fee hits to avoid paying for a card you're not using.

Can I use the free checked bag benefit if someone else is flying with me?

Yes. The free checked bag benefit covers you and one companion on the same flight. Your companion doesn't need to be a cardholder. They just need to be on the same reservation as you. Additional companions pay the standard baggage fee.