Southwest Credit Cards: When 100K Bonuses Justify the $99-229 Annual Fees

Evaluating Value: Which Card Justifies Its Annual Fee?

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With annual fees up significantly, understanding which card delivers value for your specific travel patterns is critical.

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Southwest Rapid Rewards® Plus Credit Card - Entry-Level Option

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Value assessment:

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The Plus card's anniversary bonus alone offsets roughly 40% of the annual fee. The remaining value must come from checked bag benefits and the flight discount code.

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Key insight: The first checked bag benefit becomes the primary value driver. If you fly Southwest with checked bags just twice per year, the bag fee savings typically exceed the annual fee. For carry-on-only travelers who fly once or twice annually, the value proposition weakens significantly.

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Best for: Budget-conscious travelers who check bags and fly Southwest 2-3 times per year but don't spend heavily on dining or groceries.

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Southwest Rapid Rewards® Premier Credit Card - Mid-Tier Sweet Spot

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Value assessment:

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The Premier card's stronger anniversary bonus offsets approximately 50% of the annual fee. The 2x earning on dining and groceries (capped at combined spending of $8,000 annually) provides the differentiator from the Plus card.

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Key insight: For travelers who spend moderately on dining and groceries, the extra points from the 2x categories combined with the better anniversary bonus typically justify the higher annual fee compared to Plus. The improved seat selection access adds value in Southwest's new assigned seating environment.

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Best for: Regular Southwest travelers (3-4 times per year) who spend several thousand dollars annually on dining and groceries and value the enhanced earning potential and better perks.

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Southwest Rapid Rewards® Priority Credit Card - Premium Tier

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Value assessment:

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The Priority card's anniversary bonus offsets roughly 55-60% of the annual fee. However, the card lost significant value when the annual travel credit and upgraded boardings were eliminated. The primary remaining value comes from 4x earning on Southwest purchases and immediate preferred seat selection.

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Key insight: The Priority card justifies its premium only for travelers who book Southwest flights frequently and directly through Southwest (not third-party sites). The 4x earning requires substantial Southwest-specific spending to create meaningful value. The lack of a flight discount code is a surprising omission that the Plus and Premier cards both include.

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Best for: Frequent Southwest flyers who book directly with the airline multiple times per year and value immediate access to preferred seats at the time of booking.

The Decision Framework: Matching Cards to Travel Patterns

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Rather than focusing on precise calculations, the key is understanding which card aligns with your actual Southwest usage patterns.

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When the Plus Card Makes Sense

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Ideal traveler profile:

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• Flies Southwest 2-3 times annually

• Consistently checks bags on Southwest flights

• Minimal spending on dining and groceries (or spends in categories without bonuses)

• Values simplicity and the lowest annual fee option

• Needs Companion Pass qualification but wants the most affordable long-term card

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Primary value drivers:

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• First checked bag benefit (most significant savings)

• Anniversary points help offset annual fee

• 10% flight discount provides occasional savings

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Skip Plus if: You fly Southwest frequently enough that the Premier's enhanced benefits (better anniversary bonus, 2x dining/groceries, improved seat selection) would generate more value than the fee difference.

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When the Premier Card Makes Sense (The "Sweet Spot")

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Ideal traveler profile:

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• Flies Southwest 3-5 times annually

• Checks bags on most flights

• Spends several thousand dollars annually on dining and groceries combined

• Values enhanced seat selection in Southwest's assigned seating environment

• Wants balanced benefits without premium-tier pricing

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Primary value drivers:

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• Stronger anniversary bonus than Plus

• Earning on accessible spending categories

• Better flight discount

• Preferred seat selection (not just standard seats)

• Checked bag benefits

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Why Premier often wins: For travelers with moderate Southwest usage, the combination of better earning categories, enhanced anniversary bonus, and improved seat selection typically justifies the incremental cost over Plus. The Premier card provides the best balance of ongoing value for regular (but not extreme) Southwest travelers.

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Skip Premier if: You either fly Southwest so infrequently that Plus suffices, or fly so frequently that Priority's 4x earning and immediate seat selection create meaningful incremental value.

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When the Priority Card Makes Sense (The Frequent Flyer Option)

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Ideal traveler profile:

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• Books Southwest flights multiple times monthly directly through Southwest

• Southwest represents the vast majority of air travel

• Values immediate preferred seat selection at booking (not 48 hours before)

• Pursuing or maintaining A-List status through card spending

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Primary value drivers:

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• Highest anniversary bonus of the three cards

• 4x earning on Southwest purchases (double the Plus/Premier rate)

• Best seat selection access (immediate at booking)

• Unlimited Tier Qualifying Points for status qualification

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Key challenge: The Priority card lost significant value when the annual travel credit and upgraded boardings were eliminated. Without those benefits, the value proposition heavily depends on high Southwest booking frequency. Additionally, the lack of a flight discount code (which both Plus and Premier include) is a notable gap.

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Skip Priority if: Your Southwest bookings are occasional or moderate. The Premier card likely delivers better overall value at a lower cost, especially considering the 2x dining/grocery earning and flight discount code that Priority lacks.

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The General Recommendation

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For approximately 70% of Southwest cardholders, the Premier card represents the optimal choice. It provides meaningful benefits without requiring extremely high Southwest spending to justify the fee, includes useful 2x earning categories, and offers enhanced seat selection that matters in Southwest's new assigned seating system.

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The Plus card works well for truly budget-conscious travelers with minimal Southwest frequency, while the Priority card serves a narrow segment of very frequent Southwest-specific travelers.

The Companion Pass Strategy: Timing Your Application for Maximum Value

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If you're pursuing the Southwest Companion Pass (buy one ticket, companion flies free), timing your credit card application correctly can maximize the duration of your pass.

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Understanding the Companion Pass

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Qualification requirement: Earn 135,000 Rapid Rewards points in a calendar year

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Benefit: A designated companion flies free (paying only taxes and fees) on all Southwest flights through the end of the FOLLOWING year

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Duration potential: Earn the pass early in a calendar year, and you can enjoy the benefit for nearly two full years.

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The Strategic Timing Approach

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The core principle: Structure your spending so that the bulk of your welcome bonus points post in the new calendar year, rather than the year you apply.

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The optimal timeline:

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• Late summer/early fall (September-October): Apply for card

• Fall of application year: Spend moderately

• Early new year (January-February): Complete spending requirement

• Following months: Bridge the gap to 135,000 points

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Result: Companion Pass valid through December 31 of the following year = approximately 24 months of benefit

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Why This Timing Works

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By applying in late summer and strategically splitting your spending, you can:

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1. Earn the welcome bonus in the new calendar year
2. Get the anniversary bonus immediately (which also counts)
3. Have a full year ahead to use the pass after earning it
4. Maximize the duration from roughly 12 months to 24 months

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The difference between earning the pass in December versus January is having it for 1 year versus 2 years—a significant value multiplier.

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Evaluating the Companion Pass Value Proposition

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Key considerations:

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The Companion Pass remains valuable, but Southwest's dynamic pricing affects its real-world value:

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• Peak travel periods (holidays, summer): Companion tickets save significantly on fares

• Off-peak periods (January-February, September-October): Companion tickets save less due to lower base fares

• Depends heavily on your travel patterns and flexibility

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Ideal Companion Pass candidates:

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• Couples or travelers with a consistent companion

• Those who fly Southwest frequently (4+ times per year)

• Travelers flexible enough to use the pass during moderate to high-demand periods

• Those who can commit to flying Southwest primarily over other airlines

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Less ideal for:

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• Solo travelers without a regular companion

• Extremely price-sensitive travelers who only fly during the lowest-demand periods

• Those who need airline flexibility (non-Southwest routes or international travel)

Major Southwest Changes That Impact Card Value (2025-2026)

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Southwest's operational changes significantly affect whether these cards remain worthwhile, with some changes increasing card value and others decreasing it.

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Change #1: Assigned Seating (Starts January 27, 2026)

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What changed: Southwest is ending its open seating policy

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Impact on cardholders:

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• Plus card: Seat selection 48 hours before departure with Group 5 boarding

• Premier card: Preferred seat selection 48 hours before departure

• Priority card: Preferred seat selection immediately at booking

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Why this matters: In the old open seating system, boarding position determined seat choice. In the new assigned seating system, seat selection becomes a premium benefit that Southwest will charge for—but cardholders receive it automatically.

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Value shift: This change increases card value. Southwest will monetize preferred seat selection; cardholders access it as a built-in benefit, avoiding per-flight fees that non-cardholders will pay.

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Change #2: Baggage Fees for Non-Cardholders

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What changed: Southwest introduced checked bag fees for customers without a qualifying credit card

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Impact on cardholders: All three Southwest cards provide first checked bag free for cardholder plus up to 8 companions on the same reservation. This benefit now represents real savings compared to paying per-bag fees on each flight.

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Value shift: This change significantly increases card value. A benefit that was previously a "nice to have" (since Southwest offered free bags to everyone) is now a "saves you real money" benefit for anyone who checks bags.

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Overall assessment: For frequent Southwest flyers who check bags, these cards offer more value post-changes. For infrequent flyers or those who exclusively carry-on, the higher annual fees aren't offset by the benefits.

How Kudos Ensures You Never Waste Southwest Points or Miss Benefits

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The biggest Southwest credit card mistakes aren't about which card you choose—they're about forgetting to use points before they devalue and missing benefits you're paying for.

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Problem #1: Points Sitting Idle While Southwest Devalues Them

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Common failure mode:

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• You earn bonus points
• Points sit unused for 12-18 months
• Southwest implements dynamic pricing changes that reduce redemption value
• Same flights now cost 20-30% more points

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The hidden cost: Point devaluation happens gradually and silently. You don't get an alert saying "your points are worth less today."

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How Kudos helps:

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Kudos Insights tracks your Rapid Rewards point balance and alerts you to:

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• Unusual point expirations

• Optimal redemption opportunities based on your spending patterns

• Comparison: "You're xxx card for travel—switch to xxx card to earn points and use them"

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Problem #2: Forgetting Anniversary Bonuses and Benefits

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Scenario: You have the Southwest Premier card. On your account anniversary, you get bonus points.

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Failure mode:

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• Anniversary date passes

• Points post automatically to your Rapid Rewards account

• You don't notice and forget you have 6,000 additional points available

• Points eventually expire after 24 months of account inactivity

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How Kudos helps:

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Kudos Hidden Perks automatically tracks your Southwest card benefits:

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• "Your Southwest Premier anniversary bonus just posted—worth xxx in free flights"

• "You've used 0 of your annual grocery/dining spend limit—you're missing out on earning points"

• "Your annual flight discount code is available—save 15% on any Southwest flight"

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Problem #3: Using the Wrong Card at Checkout

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Scenario: You're booking a Southwest flight for $400.

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You have:

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• Southwest Premier card

• Chase Sapphire Preferred®

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Without Kudos: You instinctively pull out Southwest Premier ("it's a Southwest flight, use the Southwest card")

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Mistake: Chase Sapphire Preferred® would earn points

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With Kudos: Browser extension automatically detects you're on Southwest.com and suggests: "Use Chase Sapphire Preferred® for more earning instead of Southwest Premier"

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Annual impact: The average Southwest cardholder makes 4-6 Southwest bookings per year. Using the optimal card each time saves 1,500-2,500 points annually.

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Download Kudos for free to automatically optimize every Southwest purchase and never miss your anniversary bonus.

Comparing Southwest Cards to General Travel Cards

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Before committing to a Southwest-specific card, consider whether a flexible travel card might serve you better—especially given Southwest's recent devaluations and operational changes.

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Southwest Premier vs. Chase Sapphire Preferred® Card

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When Southwest Premier wins:

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• You fly Southwest 4+ times per year with checked bags

• You value loyalty perks (seat selection, boarding priority)

• Southwest serves your primary routes well

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When Sapphire Preferred wins:

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• You fly multiple airlines (flexibility matters)

• You value point transfers to other programs

• Your travel is unpredictable or international

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Southwest Priority vs. Capital One Venture X Rewards Credit Card

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When Southwest Priority wins:

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• You spend $4,000+ annually on Southwest flights directly

• Southwest serves 80%+ of your air travel needs

• You don't value lounge access

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When Venture X wins:

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• You fly multiple airlines regularly

• You value lounge access

• You want flexible points and annual travel credit

• You spend on non-travel categories

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The harsh truth: For most travelers, the Venture X provides superior value even at $166 higher annual fee. The $300 travel credit, Priority Pass lounge access, and flexible earning structure outweigh Southwest Priority's airline-specific benefits.

Frequently Asked Questions

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Is the Southwest Companion Pass still worth pursuing in 2025-2026?

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Yes, but with important caveats. The Companion Pass remains one of the most valuable airline loyalty benefits, offering buy-one-get-one-free flights for up to 24 months. However, Southwest's dynamic pricing means companion tickets save less during off-peak periods compared to peak travel. The ideal candidates for Companion Pass are couples or frequent travelers with a consistent companion who fly Southwest 4+ times per year during moderate to high-demand periods. If you primarily fly alone or during low-demand times, the value diminishes significantly.

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Do Southwest credit card anniversary bonuses count toward Companion Pass?

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Yes. Anniversary bonuses count as qualifying points toward the 135,000-point Companion Pass threshold. This is why the September application strategy works so well—you can earn 100,000 welcome bonus points + 6,000-10,000 anniversary points + organic spending to reach 135,000 in the new calendar year, giving you the pass for nearly 24 full months.

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Can I hold multiple Southwest credit cards to earn multiple welcome bonuses?

Yes, but with important restrictions. You can hold multiple Southwest cards simultaneously and earn each card's welcome bonus, BUT you must follow Chase's rules: (1) You can only earn one Southwest card welcome bonus every 24 months, (2) You must be under Chase's 5/24 rule, (3) Each card counts as a separate account toward your total credit with Chase. A common strategy is to get one personal Southwest card now for the welcome bonus, then apply for a Southwest business card 24+ months later for a second bonus.

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Should I downgrade my Southwest card to avoid the annual fee after getting the welcome bonus?

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Generally no, for two reasons. First, there's no fee-free Southwest card to downgrade to—your only option is closing the account entirely. Second, closing the account means losing first checked bag benefits and anniversary bonus points (worth $39-130 depending on card). Unless you're certain you'll never fly Southwest again, keeping the lowest-fee card (Plus at $99) for the checked bag benefit alone typically justifies the cost.

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Does the first checked bag benefit work for my companions even if they're not cardholders?

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Yes. The first checked bag free benefit applies to the cardholder plus up to 8 companions on the same reservation. This means if you're traveling with family or friends and book all travelers on one reservation using your card, everyone gets free first checked bag. For a family of four taking a round trip, this saves $280 in baggage fees, which more than covers the annual fee on any Southwest card.

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How do Southwest points compare in value to other airline miles?

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Southwest points are valued at approximately 1.3-1.4 cents per point by major points valuation sites (The Points Guy, NerdWallet). This is middle-tier compared to other programs: United MileagePlus and American AAdvantage miles are worth ~1.3-1.4 cents, while Chase Ultimate Rewards and Amex Membership Rewards offer 1.5-2.0 cents per point due to transfer partner flexibility. Southwest's key advantage isn't point value—it's redemption simplicity and Companion Pass potential. If you value flexibility and transfer partners, Chase or Amex points are superior. If you value Southwest's route network and Companion Pass, Southwest points win.

Bottom Line: The New Southwest Card Strategy for 2025-2026

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The Southwest credit card landscape has fundamentally changed. Higher fees, benefit eliminations, and airline operational shifts mean the "automatic yes" recommendation no longer applies to everyone.

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Here's your decision framework:

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Apply for a Southwest card during 100K bonus offer if:

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✅ You fly Southwest 3+ times per year with checked bags

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✅ You're targeting Companion Pass for 2026-2027

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✅ You spend $3,000+ annually on dining and groceries

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Skip Southwest cards and choose flexible travel cards if:

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❌ You fly multiple airlines or routes Southwest doesn't serve well

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❌ You're a carry-on-only traveler who flies Southwest 1-2 times per year

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❌ You're currently over Chase's 5/24 rule

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The Southwest cards aren't what they used to be—but with strategic application timing, the right card choice (Premier), and disciplined benefit usage, they still deliver strong value for Southwest loyalists. The key is being honest about your travel patterns and not falling into the sunk cost fallacy of keeping a card "for the points" when you'd save more with a flexible travel card.

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Download Kudos to track Southwest welcome bonus offers, optimize every purchase, and never miss your anniversary bonus or annual flight discount code.