Southwest credit cards
$69-99
Personal cards: 40,000 Southwest points, with $1,000 spend.($500 net value, 50/$)
Business card: 60,000 points with $3,000 spend. ($770 net value, 26/$)
Signup Bonus Chart2x Southwest Purchases (≈2.8%)
1x Everywhere Else (≈1.4%)
3% Foreign Transaction Fee
The Southwest Airlines cards offer very lucrative signup bonuses. In addition, the signup bonuses from these cards usually play a key role in anyone trying to earn the Southwest Companion Pass. Unfortunately, they are subject to the Chase 5/24 rule.
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Southwest Credit Card Options
TThere are three different Southwest Airlines credit cards.
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Plus version. The Plus version usually has the same signup offer as the Premier version, and has a $30 lower annual fee. As a result, it is the better of the two options, for someone who is only planning on holding onto the card for the first year. |
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Premier version. For an extra $30 per year, the Premier version of the card gives you 3,000 extra Southwest points every year you have the card, lets you earn up to 15,000 points towards elite status, and eliminates the foreign transaction fee. If you are keeping the card, these benefits are worthwhile, but most people won't want to keep either card beyond the first year. Official Webpage |
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Premier Business version. The Business version of the Premier card has a normal signup bonus of 60,000 points (rather than only 40,000 points), but doesn't come with the opportunity to earn elite status qualifying points, or the bonus reward rates on hotel and rental partners. Official Webpage |
Collecting the Signup Bonus
Our base value for Southwest points is 1.5 cents per point. Unlike most other frequent flyer programs, the required number of miles for a Southwest airline ticket is based on the cash ticket price, rather than where you are flying. The points required for your fare is calculated based on the "base" price of the ticket. But because the award ticket actually covers most of the taxes and fees, and not just the base fare, the value per point is actually a bit higher than the amount used to calculate the required points. For a typical fare, you can expect to get about 1.5 cents per point, but it is slightly higher for inexpensive tickets, and slightly lower for more expensive tickets. Get the Most From Southwest Rapid Rewards.
- It is worth signing up for a personal version of this card, just to collect the signup bonus. After subtracting the annual fee and the opportunity cost of using the card for $point of spending, the calculated net value for the initial year is $40000 (Expression error: Unrecognized word "point". cents per dollar spent).
- You CAN'T earn the signup bonus from both the Plus and the premier version of the personal cards. Chase limits your ability to get both of these cards. You can only eligible for the signup bonus, if you haven't earned one from either card, in the last two years.
- You might want to wait for a better signup offer. These cards often have bonus offers of 50,000 or 60,000 points.
- The business version has a normal signup bonus of 60,000 points, with a $3,000 initial spending requirement. That works out to a net value of $770 (26 cents per dollar spent).
- You may be able to earn the signup bonuses from both the personal and business version of the card. If you have any kind of side business, you are entitled to apply for business cards. If so, you can earn the signups from either or both versions. Unlock Extra Reward Points with Business Credit Cards.
- It is difficult to collect a signup bonus a 2nd time, because of the Chase 5/24 rule. Normally, you are eligible for a Chase signup bonus, if you haven't already earned the bonus from the same card during the last two years. However, due to the Chase 5/24 rule, if you've been signing up for other cards, you won't be able to get approved when you reapply. You'll need get under the 5/24 limit before you can earn one of the bonuses again. Dealing with the Chase 5/24 Rule.
After subtracting the annual fee, and the opportunity cost of using the card for $2,000 of spending, the calculated net value of the sign-up is $560 (28 cents per dollar spent). Your value may be higher or lower, depending on how much you value the points. How Much are Points Worth?
Earning the Southwest Companion Pass
Depending on how you travel, the Southwest Companion Pass may be the best travel benefit out there. It essentially allows a couple to fly for half-price, whenever they want, on Southwest airlines, for up to two years. Every time you buy a Southwest ticket, or redeem your points for an award ticket, your companion gets to fly for "free" (only paying nominal taxes and fees). Over the course of the year or two that you have the pass, you can save thousands of dollars on airfare. Get 2 for 1 Travel with the Southwest Airline Companion Pass
- The easiest way to earn the pass is through credit card signup bonuses. The “normal” way to earn a Companion Pass is by taking 100!!! qualifying one-way flights, or earning 110,000 Southwest points, during a calendar year. You’d have to fly a lot, to earn one strictly by flying. Points you earn from spending with a Southwest credit card count, but most people don’t have an extra $110,000 to spend on their credit card. As a result, for almost everyone, the only realistic way to qualify for the pass, is by signing up for Southwest Airlines credit cards.
- If you sign up for both a personal and business version of the cards, by the time you are finished with the initial spending requirement, you will have nearly (or more than) enough points to earn your pass. Ideally, you can take advantage of 60,000 point signup offers to earn more than the number of points you need. With a lower signup bonus, the pass is usually still within reach, it will just require more spending or flying to get all the way there.
- While reaching 110,000 points in a year will qualify you for the pass, you don't need to spend any of your points to get it—you can use the points to book lots of free travel instead. Once you are finished earning enough points to acquire the pass, you’ll have enough points for around $3300 worth of free airfare. Since Southwest airline points are worth about 1.3 - 1.8 cents each, you can use your 110,000 points for about $1650 worth of tickets. And because you have the pass, you’ll get $1650 worth of companion tickets as well.
- If you qualify at the beginning of the year, you can earn a companion pass for almost two years. When you qualify for the companion pass, it is valid for the remainder of the year that you qualify, and the entire following year.
- 'Unfortunately, the Chase 5/24 rule limits your ability to take advantage of this strategy, while also signing up for other credit cards. If re-qualifying for a Companion Pass is important to you, you are limited to a maximum of three other new (personal) credit cards every two years. The simplest approach is probably to have one person keep under this limit, while the other person freely applies for any desired credit cards.
Chase has recently restricted the ability to receive the bonus for both personal versions of the Southwest card. You are only entitled to one, every 24 months. The only way to combine the signup bonuses of two cards, in the same year, is by taking advantage of the business card. Fortunately, you don't have to have a very big business to sign up for a business card. As long as you have some sort of side business, even one that hasn't quite made any money yet, you are eligible to sign up. Unlock Extra Reward Points with Business Credit Cards.
Other Notable Benefits
- Anniversary point bonus. Every year you hold onto the card, you'll receive bonus points on your anniversary. You'll get 6,000 points from the Premier version, or 3,000 points from the Plus version.
- Earns tier qualifying points. For every $10,000 you spend on the persona Premier version of the card, you'll earn 1,500 qualifying points towards A-List (or A-List Preferred status). You can earn up to 15,000 qualifying points in this way.
- Bags are always free. Unlike almost all other airlines, Southwest doesn't charge extra for checked bags. Therefore, you don't need to get their credit cards to get a checked bag benefit.
- Primary Rental Car Insurance (Business Premier only). The Southwest Business Premier card comes with primary rental car insurance. Unlike the secondary insurance that comes with most other credit cards, if you get in an accident, you won't need to involve your auto insurance company. The personal version of the Premier card does not come with this benefit. Credit Cards That Provide “Primary” Rental Car Coverage.
- Access to the Visa Signature Luxury Hotel Collection. As with all Visa Signature cards, you'll get access to Visa's luxury hotel program. Whenever you book one of the 900+ participating hotels, you'll receive a set of valuable benefits, including free breakfast, late check-out, and a $25 food and beverage credit. The Visa program has slightly weaker benefits than the other luxury hotel programs, but includes a larger number of more affordable hotel options and a best price guarantee. Take Advantage of Luxury Hotel Programs for Valuable Extra Perks.
- Access to Visa Signature Offers. Your card entitles you to a set of special offers available from Visa.
Bonus Categories
- You are better off making your Southwest Airlines purchases with a card that earns a higher reward rate for airfare spending. 2x Southwest points is okay but not as good as what you'd earn from one of the better cards.Best Credit Cards for Travel Spending.
- You don't want to use these cards for your everyday spending. You'll earn higher rewards from a good general-purpose reward card. Get a Great General Purpose Reward Card and Use It for All of Your Spending.