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

A Southwest credit card can save you real money if you fly Southwest multiple times a year and spend enough on the card to hit the sign-up bonus. The main benefit is earning points toward free flights, plus a companion pass (one free ticket when you buy another) if you meet the spending requirement. But if you fly other airlines, rarely travel, or carry a balance month to month, the annual fee and rewards structure work against you.

The decision comes down to three things: your actual travel patterns, whether you can pay the full balance each month, and whether the sign-up bonus covers the annual fee in the first year. This guide walks through what each Southwest card offers, who benefits most, and when to skip it.

Key Takeaways

  • Southwest cards charge an annual fee (typically $69 to $99) but offer a sign-up bonus worth enough points for a free flight, which can offset the fee in year one.
  • The main value comes from the companion pass — a free ticket when you buy another — which you earn by spending $2,000 to $4,000 in the first three months, depending on the card.
  • You only benefit if you fly Southwest at least twice a year and can pay your full balance each month, because interest charges will erase any rewards value.
  • Southwest points don't expire as long as you have account activity, but the card's value drops sharply if you don't use it for travel within a year or two.

What the sign-up bonus actually covers

Southwest offers several cards, and each has a different sign-up bonus. The most common versions offer 40,000 to 75,000 points after you spend $2,000 to $4,000 in the first three months. At Southwest's current pricing, 40,000 points is roughly worth one domestic round-trip flight, and 75,000 points is worth closer to two.

The annual fee ranges from $69 to $99 depending on which card you choose. In year one, if you hit the spending requirement and take at least one flight with those points, the bonus typically covers the fee and puts you ahead. In year two and beyond, you're paying the annual fee for the privilege of earning points on purchases — which only makes sense if you're flying Southwest regularly enough to use those points.

The companion pass is where the real value lives. When you spend $2,000 to $4,000 in the first three months (depending on the card), you unlock a pass that lets one person fly free every time you buy a ticket for the rest of that calendar year and all of the next. If you fly with a partner or family member twice a year, that pass alone can be worth $300 to $600 in free tickets.

When the card pays for itself

The card makes financial sense if you meet at least two of these conditions: you fly Southwest at least twice a year, you spend $2,000 or more on the card in the first three months anyway (groceries, gas, bills), and you can pay the full balance each month.

Example: You spend $3,000 on groceries and utilities in the first three months. You hit the sign-up bonus, get 50,000 points (worth roughly one free flight), and unlock the companion pass. You fly to visit family twice a year with your partner. The companion pass saves you $400 to $500 annually. The annual fee is $99. You're ahead by $300 to $400 in year one, and you break even or come out ahead in year two if you use the card for regular spending and fly at least once more.

The card does not make sense if you carry a balance. A 20% interest rate on a $2,000 balance costs $400 a year — far more than any rewards you'll earn. If you can't pay the full statement balance each month, skip this card entirely.

How Southwest points and the companion pass work

Southwest uses a points system instead of miles. You earn one point per dollar spent on the card, plus bonus points on certain categories (sometimes 3x on dining or hotels, depending on the card). You redeem points directly for flights — there's no separate transfer or booking process. You log into Southwest's website, search for a flight, and pay with points instead of cash.

Points don't expire as long as you have account activity on your Southwest account. Account activity includes earning or redeeming points, so even if you don't fly for a year, one purchase on the card keeps your points alive. This is different from most airline programs, where points expire after 12 to 24 months of inactivity.

The companion pass works once per calendar year. You buy a ticket for yourself, and one other person flies free on the same flight. The pass is tied to your account, not the card, so it stays active even if you cancel the card — though you lose the ability to earn new points. The pass expires at the end of the second calendar year after you earn it, so if you earn it in January 2024, it's good through December 2025.

Comparing Southwest cards to other airline cards

Southwest cards are strongest if you fly Southwest exclusively. If you split your travel between Southwest and United, American, or Delta, you're spreading your points across multiple programs and earning rewards slower in each one. A general travel card like the Chase Sapphire Preferred or American Express Gold might give you more flexibility, since you can transfer points to multiple airlines or use them for any travel purchase.

Southwest also has no premium cabin (first class or business class), so the card doesn't offer perks like seat upgrades or lounge access. If you value those benefits, an American or United card might serve you better. Southwest's strength is simplicity and the companion pass — if that doesn't match your travel style, the card's value drops significantly.

If you fly Southwest but also want a card for everyday spending that earns cash back instead of points, consider keeping a Southwest card for flights and a flat-rate cash-back card (like the Chase Freedom Unlimited) for everything else. You'll earn rewards on all spending without forcing yourself into a single airline's ecosystem.

The annual fee in year two and beyond

After year one, you pay the annual fee ($69 to $99) without a new sign-up bonus. The card only makes sense if you're earning enough points through regular spending to offset the fee and actually use those points for flights. If you fly Southwest once a year and spend $500 on the card annually, you're paying $99 to earn maybe $50 worth of points — a losing trade.

Many people cancel the card after the first year and reapply later to get another sign-up bonus. Southwest typically allows you to earn a new bonus every 24 months, so you could apply, use the card for a year, cancel, and reapply two years later. This strategy works if you're disciplined about the timing and don't mind managing multiple applications. It also requires you to have decent credit, since each application is a hard inquiry.

If you keep the card long-term, the annual fee is only worth it if you're flying Southwest at least twice a year and spending enough on the card to earn 10,000 to 15,000 points annually (roughly $100 to $150 in flight value). That usually means $5,000 to $10,000 in annual card spending, depending on bonus categories.

Red flags that the card isn't right for you

Don't open a Southwest card if you carry a credit card balance from month to month. The interest you'll pay erases any rewards value. Don't open one if you fly other airlines more than Southwest. Don't open one if you're applying just for the sign-up bonus and have no intention of flying — the points expire if you don't use your Southwest account for two years, and the annual fee will keep charging.

Also reconsider if you're under 21 or have limited credit history. Southwest cards typically require good to excellent credit (a score of 670 or higher), and if you're denied, the hard inquiry will hurt your score without the benefit of the card. If you're rebuilding credit, a secured card or a card designed for limited credit history is a better starting point.

Frequently Asked Questions

Can I use Southwest points for anything other than flights?

Southwest points are for flights only. You can't transfer them to hotels, car rentals, or other travel partners. You can book hotels and car rentals through Southwest's website using points, but you're paying a markup compared to booking directly. For maximum flexibility, a general travel rewards card is better.

What happens to my points if I cancel the card?

Your points stay in your Southwest account as long as you have account activity. Canceling the card doesn't erase the points. However, you stop earning new points on purchases once the card is closed. If you don't use your Southwest account for two years, the points expire.

Do I have to spend $2,000 in three months to get the sign-up bonus?

Yes, that's the minimum spending requirement for most Southwest cards (some require $4,000). If you don't hit it, you don't get the bonus. You can't meet it by paying bills or making purchases you wouldn't normally make — that defeats the purpose. Only apply if you're already planning to spend that amount on groceries, gas, or other regular expenses.

Is the companion pass worth the annual fee by itself?

Only if you fly with a companion at least once a year. A companion pass saves you one round-trip ticket per year, which is typically $200 to $400 depending on the route. If you fly solo or your travel partner doesn't fly with you, the pass has no value. In that case, the card only makes sense if you're earning enough points on regular spending to justify the fee.

Can I get a Southwest card if I have fair credit?

Southwest cards typically require good credit (670 or higher). If your score is lower, you'll likely be denied. A denial counts as a hard inquiry and can lower your score further. If you're rebuilding credit, focus on a secured card or a card designed for fair credit first, then apply for Southwest once your score improves.