Southwest Airlines credit cards have new annual fees — are these cards still worth it?

The Southwest credit cards were recently revamped to include higher annual fees and various updates to card benefits. It’s never fun to hear about annual fee increases, which is why we wanted to take a look at the Southwest cards to see if they’re still worth it for certain travelers.

(Hint: They’re still worth it for many Southwest loyalists, especially with the new Southwest bag policies.)

With the recent Southwest credit card revamp, the three personal Southwest cards had their annual fees increased. However, Southwest cards may still be worth it if you want a free checked bag or one of the other card benefits, such as a 10,000 Companion Pass qualifying points boost each year.

Read our full Southwest Rapid Rewards Plus Credit Card review

Read our full Southwest Rapid Rewards Priority Credit Card review

Read our full Southwest Rapid Rewards Premier Credit Card review

The most straightforward way to calculate the value of a Southwest credit card is to explore its benefits and see if it can provide you with enough value to more than offset the annual fee.

For example, look at the welcome offers and rewards rates on the different Southwest cards and see how much value you can get from them. Research the different benefits, such as getting a free checked bag, and see how they may align with your upcoming travel plans.

Keep in mind that you may not get value from every card benefit. That’s OK as long as you still receive enough value from other perks to offset the annual fee.

This isn’t a complete list of every benefit available on Southwest credit cards, but it will give you an idea of how much value these cards can provide.

Credit card sign-up bonuses are typically one of the best ways to offset annual fees, at least for the first year or two. For example, a welcome bonus of 50,000 Southwest Rapid Rewards points is worth about $600, according to our Southwest points valuation.

All three Southwest consumer credit cards provide elevated rewards on Southwest Airlines purchases and bonus points in a few other categories. You can earn valuable points on common expenses if the spending categories align with your everyday purchases.

Related: Best rewards credit cards

The Southwest cards provide a free first checked bag for you on Southwest flights. That’s a potential savings of $35 on each one-way flight. If you were to take two round-trip flights in a year, you could save $140 on bag fees.

In addition, this perk extends to up to eight other passengers on the same reservation, providing opportunities for even more savings.

Along with other changes, Southwest is ending its open seating policy, making the seat selection benefits on the Southwest cards all the more valuable. The best perk here is on the Southwest Rapid Rewards Priority Card, which lets you choose a complimentary Preferred seat when booking. This could be especially useful if flying on a basic fare with no seat selection benefits.

Depending on the Southwest card, you’ll receive 3,000 to 7,500 anniversary points each year. Using our valuation, those points are worth between $36 and $90, which is a simple way to help offset your annual fee.

You don’t have to pay foreign transaction fees on the Southwest consumer cards, saving you about 3% on any foreign charges you make, including purchases in other countries. This benefit is generally only important if you plan to travel abroad.

Related: Best credit cards with no foreign transaction fees

Each card provides 10,000 Companion Pass qualifying points each year. This is important for anyone trying to earn a Companion Pass, which is one of the best benefits Southwest offers.

The Companion Pass essentially lets you add a free ticket (plus taxes and fees) to any Southwest flight. So, for the often low cost of paying the taxes and fees, you can travel with a friend or family member to any Southwest destination, including other countries.

Two of the Southwest consumer cards offer A-List tier qualifying points for every $5,000 spent:

You need to fly 20 qualifying one-way flights or earn 35,000 tier qualifying points in a calendar year to earn A-List status. A-List status benefits include complimentary seat selection when available, priority boarding, a free checked bag, same-day standby, a dedicated A-List member phone line, and more.

Pros

Cons

Southwest credit cards make the most sense if you:

• Frequently fly Southwest

• Enjoy flying Southwest

• Live near a Southwest airport hub, such as Dallas (DAL), Baltimore (BWI), or Denver (DEN)

These cards don’t make as much sense if you don’t fly Southwest often or have limited opportunities to use the travel rewards and benefits.

Anyone who can take advantage of the rewards and benefits

There are always exceptions to the rule, meaning you can still get value from Southwest cards even if you don’t fly Southwest often or don’t live near a major Southwest hub. For example, if you have any upcoming trips planned where it may make sense to fly Southwest, it could be worth signing up for a Southwest card.

Even if you only plan to fly Southwest a few times per year, having one of these cards could be worth it. Two round-trip flights for a family of four could easily cover the annual fee in savings on bag fees alone.

Read more: Are travel credit cards worth it?

Why this is a good alternative: You miss out on all the specific Southwest benefits, like a free checked bag and anniversary points, with the Chase Sapphire Preferred, but you can access more flexible rewards. You don’t have to be a frequent Southwest traveler for the Sapphire Preferred to make sense; you can play the field with whatever airline makes sense for your trips. In addition, you can transfer your points to Southwest if it makes sense.

Read our full Chase Sapphire Preferred review

Why this is a good alternative: The Chase Sapphire Reserve earns the same flexible rewards as the Sapphire Preferred and has the same transfer partners, including Southwest Airlines. In addition, the Sapphire Reserve also provides multiple premium benefits, including airport lounge access and a $300 annual travel credit, that you won’t find on the Southwest credit cards.

Read our full Chase Sapphire Reserve review

If Southwest doesn’t make sense for your situation, consider other airline credit cards from carriers like United and Delta:

We value Southwest points at about 1.2 cents per point, which means 50,000 Rapid Rewards points would be worth about $600.

The main advantage of having a Southwest Airlines credit card is that you get a free checked bag on Southwest flights. Eligible cardholders and up to eight additional passengers on the same reservation receive their first checked bag for free. Considering it typically costs $35 for a checked bag, that’s potentially a lot of savings on bag fees.

These are the best credit cards for Southwest Airlines:

What is the Southwest Companion Pass, and how do I get it?

The Southwest Companion Pass is a benefit you can earn by flying 100 qualifying flights or earning 135,000 Companion Pass qualifying points in a year. The pass lets you add a friend or family member to your Southwest flight for free, plus the cost of any taxes or fees.

One of the easiest ways to work toward earning the Southwest Companion Pass is to sign up for a Southwest credit card with a large welcome bonus. Earning the pass means you get it for the rest of the year in which you earned it and the entire next calendar year.

It depends on the card and how frequently you fly, but the benefit of getting a free checked bag could provide more than enough value to offset your annual fee. On most one-way fares, Southwest charges $35 for a checked bag. So, seven flights in a year could offset the fee on the Southwest Rapid Rewards Priority card, and you would need fewer flights for the other Southwest consumer cards.

Related: Best credit cards with no annual fee

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