The Southwest card makes sense if you fly Southwest regularly and want to offset the cost with rewards

The Southwest Rapid Rewards Credit Card (offered by Chase in two versions—the standard card and the Priority card) gives you points on every purchase, a bonus of points after you spend a certain amount in the first months, and two free checked bags per year on Southwest flights. Whether it's worth the annual fee depends almost entirely on whether you actually use those free checked bags and whether you'd spend enough to earn points you'd redeem.

The annual fee is not waived for the first year on either version. The standard card costs $69 per year; the Priority card costs $99 per year. You need to decide upfront whether the benefits will save you more money than the fee costs. This is not a card to open and forget about.

Key Takeaways

  • The free checked bags benefit saves money only if you actually check bags on Southwest flights—each checked bag normally costs $35 to $40 per flight.
  • You earn points on all purchases (1 point per dollar spent), but those points are only useful if you fly Southwest or book through their partners.
  • The sign-up bonus requires you to spend a set amount within a few months; if you can't reach that spending naturally, the bonus won't offset the annual fee.
  • The Priority card's higher annual fee is only worth it if you value the extra perks like priority boarding and a free drink on flights.
  • If you don't fly Southwest at least once or twice a year, or if you never check bags, this card will cost you money instead of saving it.

How the free checked bags actually save you money

Southwest allows two free checked bags per passenger per flight. Most airlines charge $35 for the first checked bag and $45 for the second on domestic flights. If you check two bags on a round trip (four flights total), that's $280 to $360 per year in bag fees alone. The card's annual fee becomes worth it after just one or two trips where you check bags.

The catch: this only works if you actually check bags. If you travel with a carry-on only, the free checked bags benefit is worthless to you. Be honest about your travel habits before you apply. Also, the free bags apply only to you as the cardholder—your travel companions still pay full bag fees unless they also have the card.

Understanding the points and how to use them

You earn 1 point per dollar spent on all purchases, with no bonus categories. That means a $1,000 grocery bill earns 1,000 points, the same as a $1,000 gas purchase. Other travel cards offer 2x or 3x points in specific categories, so the Southwest card's earning rate is middle-of-the-road.

Points are redeemable only for Southwest flights, gift cards, or hotel stays through Southwest's partners. You cannot transfer points to other airlines or use them for cash back. This limits your flexibility. If you fly multiple airlines or want the option to use points for other things, those points are less valuable to you. Check whether you'd actually book enough Southwest flights to use the points you earn.

The sign-up bonus and whether it covers the annual fee

The sign-up bonus changes periodically, but typically requires you to spend $2,000 to $3,000 within the first three months and earn a bonus of 40,000 to 60,000 points. At Southwest's redemption rates, 40,000 points is worth roughly $400 to $500 in flight value, depending on the routes you book.

The math: if the bonus is worth $450 and the annual fee is $69, the bonus covers the fee and leaves you $381 ahead—but only if you can spend $2,000 to $3,000 in three months without changing your normal spending habits. If you'd have to buy things you don't need to hit the spending requirement, you're not actually ahead. Spend only what you would have spent anyway, and count only the bonus value that exceeds the annual fee.

Standard card versus Priority card: which fee makes sense

The Priority card costs $30 more per year ($99 versus $69) and adds benefits like priority boarding, a free drink on every Southwest flight, and a $75 statement credit toward Southwest purchases every year. The drink credit alone is worth roughly $60 to $80 per year if you fly Southwest multiple times. Priority boarding saves you time at the gate.

The Priority card makes sense if you fly Southwest at least four or five times per year and value the boarding priority and drink benefit. If you fly once or twice a year, the standard card's lower fee is the better choice. If you don't fly Southwest at all, neither card is worth it.

When this card costs you money instead of saving it

The Southwest card becomes a liability if you open it and don't use it. The annual fee hits every year whether you fly or not. If you travel rarely, fly different airlines, or never check bags, the card will cost you $69 to $99 per year with no offsetting benefit.

Also consider: if you earn points but don't redeem them within a reasonable timeframe, you're paying the annual fee to hold points that may expire or that you'll never use. Southwest points don't expire as long as you have account activity, but "activity" means you have to fly or make a purchase with the card at least once every 24 months. If you stop using the card, your points can expire.

How this card compares to other travel cards

If you're open to flying different airlines, cards like the Chase Sapphire Preferred or American Express Gold offer more flexibility: they earn points on multiple categories, allow you to transfer points to many airlines, and offer cash-back options. Those cards have higher annual fees ($95 to $250), but the points are more useful if you don't fly Southwest exclusively.

If you fly Southwest and want simplicity, the Southwest card's single-airline focus is actually an advantage—you don't have to think about which card to use or how to maximize category bonuses. The tradeoff is that your points are only valuable if Southwest serves your routes and you book with them regularly.

The real question to ask before you open this card

Before you apply, answer these three questions honestly: Do you fly Southwest at least once or twice per year? Do you check bags on those flights? Can you spend the sign-up bonus requirement without buying things you don't need? If you answered yes to all three, the card likely saves you money. If you answered no to any of them, the annual fee will cost you more than the benefits are worth.

The Southwest card is not a bad card—it's a good card for a specific person: someone who flies Southwest regularly and checks bags. If that's not you, a no-annual-fee card or a different travel card will serve you better.

Frequently Asked Questions

Do I have to use the card to keep the free checked bags benefit?

No. Once you have the card, the free checked bags apply to any Southwest flight you take, whether you paid with the card or not. You do have to keep the card open and pay the annual fee each year to maintain the benefit.

What happens to my points if I cancel the card?

Your points stay in your Southwest account and don't expire as long as you have some account activity (a flight or a purchase with any Southwest card) at least once every 24 months. You can cancel the card and keep the points, but you lose the ability to earn new points with that card.

Can I use the sign-up bonus right away?

You have to meet the spending requirement first (usually $2,000 to $3,000 in three months). Once you hit that spending, the bonus posts to your account within a few days. You can then book a Southwest flight and use the points immediately.

Is the Priority card worth the extra $30 per year?

Only if you fly Southwest at least four or five times per year and value priority boarding and the free drink benefit. If you fly once or twice a year, the standard card's lower fee saves you money with the same checked bag benefit.

What if Southwest doesn't fly to the airports I use?

Then this card is not for you. The points and free bags only help if Southwest serves your routes. Check Southwest's route map before you apply.