Finance

Is a Southwest Credit Card Worth It?

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Southwest Airways is among the hottest home airways within the U.S. — and for good motive. Vacationers get two checked baggage at no cost and might cancel or change tickets at any time with out incurring charges. If you are going to fly Southwest frequently, you could be asking your self, “Is the Southwest bank card price it?”

Right here, we’ll share what bank cards can be found and provides steerage on methods to decide for your self if a Southwest bank card is price it.

Accessible Southwest bank cards

Chase and Southwest Airways have partnered to supply a number of Southwest bank cards, together with three private playing cards and two for enterprise homeowners. Welcome bonus presents for these playing cards change periodically all year long.

Let’s a take a more in-depth have a look at which playing cards can be found, plus their present sign-up choices.

Private Southwest bank cards

  • Southwest Fast Rewards® Plus Credit score Card (annual charge: $69): Earn 40,000 factors after you spend $1,000 on purchases within the first 3 months. Plus, earn 3X factors on eating, together with takeout and eligible supply providers, for the primary 12 months.

  • Southwest Fast Rewards® Premier Credit score Card (annual charge: $99): Earn 40,000 factors after you spend $1,000 on purchases within the first 3 months. Plus, earn 3X factors on eating, together with takeout and eligible supply providers, for the primary 12 months.

  • Southwest Fast Rewards® Precedence Credit score Card (annual charge: $149): Earn 40,000 factors after you spend $1,000 on purchases within the first 3 months. Plus, earn 3X factors on eating, together with takeout and eligible supply providers, for the primary 12 months.

Southwest enterprise bank cards

Realizing which card is best for you takes somewhat digging. Take into account which card has advantages that meet your wants, if that card matches your funds, and if redeeming its perks feels manageable.

How Southwest Fast Rewards bank cards work

If you apply for a Southwest bank card, your card might be hooked up to your Southwest Fast Rewards loyalty quantity. Should you do not have already got one, a brand new member quantity might be created for you.

You may earn a welcome bonus if you happen to meet the minimal spending necessities as a brand new cardholder. All your purchases will earn factors as nicely. Relying on which card you utilized for, you will obtain extra factors for spending in sure classes, like eating or Southwest purchases.

The entire factors you earn along with your Southwest bank card are redeemable for any seat on any Southwest flight.

Southwest factors by no means expire so long as your loyalty account stays open. Should you shut your bank card, all factors already transferred to Southwest are yours to maintain.

Find out how to decide if a Southwest card is price it

Whereas Southwest bank cards do provide helpful advantages, each fees an annual charge. Earlier than paying that annual charge, you’ll want to resolve if the advantages promised are definitely worth the annual charge you are paying.

Perceive the worth of the annual factors bonus

Each Southwest cardholder earns bonus Fast Rewards factors once they renew their card annually. The variety of factors varies based mostly on which card you might have as follows:

Factors earned yearly on cardmember anniversary

Worth of anniversary factors in money

Southwest Fast Rewards® Efficiency Enterprise Credit score Card

Southwest Fast Rewards® Premier Credit score Card

Southwest Fast Rewards® Precedence Credit score Card

Southwest Fast Rewards® Premier Enterprise Credit score Card

Southwest Fast Rewards® Efficiency Enterprise Credit score Card

Whereas the worth acquired would not must cowl the annual charge to be thought of price it, understanding how these bonuses assist offset a number of the value of a card is helpful as you are calculating the cardboard’s worth.

Predict your annual spend in bonus classes

For flights paid for in money (not factors), you’ll not solely earn factors by flying, but additionally by spending. If you use your Southwest bank card, you’ll earn bonus factors on each Southwest buy, in addition to on purchases with Fast Rewards resort and automobile rental companions.

Whereas most Southwest playing cards earn 2x on these purchases, the Southwest Fast Rewards® Efficiency Enterprise Credit score Card earns 3x.

Being reasonable about how a lot you fly (and spend on) Southwest may help you establish whether or not the cardboard might be price it for you.

Decide to utilizing the cardboard on eating purchases for the primary 12 months

Southwest playing cards may help you capitalize on eating bills. In the course of the first 12 months that your private card is open, you will obtain 3x factors on all eating purchases. This consists of purchases when eating in, ordering takeout and utilizing eligible supply providers — a pleasant kickback if you happen to already spend huge quantities on this class.

Goal to earn the Companion Go

The Southwest Companion Go is among the most coveted airline advantages. If you’ve earned this perk, your designated companion flies free with you on any flight. You simply must pay the taxes and costs, which begin at $5.60 every approach. This profit works on each paid and reward flights. And you’ll change your designated companion as much as thrice yearly.

Factors earned from a brand new card welcome bonus and your entire Southwest bank card spending counts towards the full wanted to earn the Companion Go, which is at the moment 125,000 factors. Many vacationers can hit that mark with the mixture of a sign-up bonus, on a regular basis spending and a handful of paid flights.

Spend towards A-Checklist standing

With the $99-and-up Southwest playing cards, you’ll be able to earn as much as 15,000 A-Checklist Tier Qualifying Factors annually by way of spending. For each $10,000 you set in your card, you will earn 1,500 A-Checklist TQPs. Maxing out this profit will get you nearly midway to elite standing, which at the moment sits at 35,000 factors.

The one Southwest card that does not qualify for the quick monitor to A-Checklist is the Southwest Fast Rewards® Plus Credit score Card.

Who ought to skip a Southwest bank card?

Whereas a Southwest bank card could make sense for the airline’s most frequent fliers, not everyone seems to be a smart candidate for these playing cards. Maintain procuring round if:

  • You do not reside close to or fly typically to a Southwest hub. Gaining access to frequent (and inexpensive) Southwest flights will make or break your satisfaction with an airline-specific bank card.

  • You favor to optimize flight choice for value, not advantages. Should you have a tendency to pick probably the most inexpensive flight to your vacation spot no matter provider, then a extra basic journey bank card will possible higher serve your wants.

  • You need to fly in model. Southwest would not provide premium cabins for its flights, nor does it provide devoted lounges to its most prestigious members. If these conveniences are important to you, it is probably not price going all-in on Southwest loyalty.

Often requested questions

Should you’re contemplating a Southwest bank card

For individuals who love flying Southwest, getting a Southwest bank card is a smart selection. You may earn worthwhile factors on each buy, plus extra factors yearly that you simply renew your card. Whereas higher-end Southwest playing cards have bigger annual charges, the additional advantages they provide typically make them a greater deal if you happen to fly Southwest frequently.

Should you’re extra of a free agent on the subject of journey, apply for a bank card that earns Chase Final Rewards® as an alternative. Final Rewards® factors switch on a 1:1 foundation to Southwest Fast Rewards. Plus, they’ve higher flexibility as a result of the factors may be redeemed to fly with different airways, guide lodges or reserve rental automobiles.

Find out how to maximize your rewards

You need a journey bank card that prioritizes what’s necessary to you. Listed here are our picks for the finest journey bank cards of 2021, together with these finest for:

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