What To Know
- Annual fee of $149, offers 3x points on Southwest purchases, 2x points on dining and local transit, and 1x point on all other purchases, plus additional benefits like a yearly companion pass.
- The value of a Southwest credit card with an annual fee depends on your individual spending habits and travel patterns.
- For example, some cards offer a first-year annual fee waiver or a waiver if you spend a certain amount within the first year.
An annual fee is a recurring charge associated with certain credit cards, including those offered by Southwest Airlines. This fee covers the cost of maintaining the card, providing rewards and benefits, and offering customer support.
Types of Southwest Credit Cards with Annual Fees
Southwest offers several credit cards with annual fees, each with its own unique benefits and rewards structure:
- Southwest Rapid Rewards® Premier Credit Card: Annual fee of $99, offers 2x points on Southwest purchases, 1x point on all other purchases, and other benefits like free checked bags and priority boarding.
- Southwest Rapid Rewards® Priority Credit Card: Annual fee of $149, offers 3x points on Southwest purchases, 2x points on dining and local transit, and 1x point on all other purchases, plus additional benefits like a yearly companion pass.
- Southwest Rapid Rewards® Performance Business Credit Card: Annual fee of $199, offers 3x points on Southwest purchases, 2x points on advertising purchases, and 1x point on all other purchases, along with business-specific benefits.
Benefits of Southwest Credit Cards with Annual Fees
While annual fees may seem like an additional expense, they often come with valuable benefits that can outweigh the cost:
- Earn More Points: Annual-fee Southwest credit cards offer higher points-earning rates on Southwest purchases, helping you accumulate rewards faster.
- Access to Exclusive Benefits: Cards with annual fees may provide access to exclusive perks like free checked bags, priority boarding, and airport lounge access.
- Complimentary Companion Pass: Some cards, like the Southwest Rapid Rewards® Priority Credit Card, offer a valuable companion pass that allows you to bring a companion along for free on Southwest flights.
- Travel Protection: Annual-fee Southwest credit cards often include travel protection benefits like trip delay insurance, baggage delay insurance, and rental car coverage.
How to Avoid Southwest Credit Card Annual Fees
If you’re not interested in paying an annual fee, Southwest offers several no-annual-fee credit cards:
- Southwest Rapid Rewards® Credit Card: No annual fee, offers 1.5x points on Southwest purchases and 1x point on all other purchases.
- Southwest Rapid Rewards® Plus Credit Card: No annual fee, offers 2x points on Southwest purchases and 1x point on all other purchases, plus a $75 Southwest travel credit.
Is a Southwest Credit Card with an Annual Fee Worth It?
The value of a Southwest credit card with an annual fee depends on your individual spending habits and travel patterns:
- If you frequently fly Southwest: The higher points-earning rates and exclusive benefits can outweigh the annual fee.
- If you don’t fly Southwest often: A no-annual-fee card may be a better choice.
- If you value travel protection: The added protection benefits may justify the annual fee.
Consider Your Spending Habits
Before deciding on a Southwest credit card with an annual fee, carefully consider your spending habits:
- Do you spend a significant amount of money on Southwest purchases: If so, the higher rewards rates can offset the annual fee.
- Do you value the exclusive benefits: If you frequently check bags or board early, these perks can add value to your card.
- Can you afford the annual fee: Ensure that the annual fee fits within your budget.
Final Thoughts: Making an Informed Decision
Understanding the Southwest credit card annual fee is crucial for making an informed decision about whether it’s the right choice for you. By carefully considering the benefits and your spending habits, you can determine if the annual fee is justified and if the card aligns with your financial goals.
Information You Need to Know
Q: Can I waive the annual fee on Southwest credit cards?
A: Yes, in certain circumstances. For example, some cards offer a first-year annual fee waiver or a waiver if you spend a certain amount within the first year.
Q: How is the annual fee charged?
A: The annual fee is typically charged to your credit card account on your card’s anniversary date.
Q: Can I cancel my Southwest credit card to avoid the annual fee?
A: Yes, but you may forfeit any accumulated rewards or benefits. Cancelling your card may also impact your credit score.
