Travel demand is surging in 2023, which means costs are surging as well. However, savvy travelers can use travel rewards cards to their advantage and offset their spending with benefits like rewards and bonus offers.
Southwest Airlines is one such card issuer that offers a range of generous rewards and benefits to its cardholders. Big changes are coming to the Southwest Rapid Rewards® Credit Card. That is, the sign-up bonus for new customers increases from 50,000 points to 75,000 points. Here’s what you need to know about getting this deal and making the most of your airline credit card.
Southwest Airlines increases bonus for new cardholders
this Southwest Rapid Rewards® Plus Credit Card, Southwest Rapid Rewards® Premier Credit Cardand Southwest Rapid Rewards® Priority Credit Card There are updated sign up bonus offers. Now, cardholders can earn 75,000 bonus points after spending $3,000 in purchases within the first three months of account opening.
Previously, new cardholders could receive a $50,000 bonus when they spent $1,000 in purchases within the first three months of account opening.
The new sign-up bonus requires meeting a higher spending threshold to qualify. However, the massive bonus of 75,000 points goes a long way toward paying for future purchases, whether it’s a dream vacation, holiday gift, or any other purpose.
Southwest Rapid Rewards® Credit Card Overview
Southwest offers three different rewards cards to individuals. If you’re considering applying for a card, it’s important to choose one that best suits your spending and travel habits. Here are the key points you should know about each card:
Fast Rewards Priority Credit Card
annual fee: $149
award:
- Earn 3x points on Southwest® purchases including flights, inflight cards and Southwest gift cards
- Earn 2x points with Rapid Rewards® hotel and car rental partners
- Earn 2x points on local transportation and commuting (including rideshares)
- 2X points on Internet, cable and phone services; select streaming media
- All other purchases earn 1X points
Additional benefits and perks:
- $75 Southwest® annual travel credit per year
- 4 boarding upgrades per year (if any)
- Earn 10,000 Companion Pass® qualification points each year
- Earn 1,500 Tier Qualification Points (TQP) for every $10,000 spent annually to achieve A-List status
- Get 25% back on in-flight purchases
- 7,500 anniversary points per year
Learn more about the Southwest Rapid Rewards® Priority Credit Card here.
Quick Rewards Premium Credit Card
annual fee: $99
award:
- Earn 3x points on Southwest® purchases including flights, inflight cards and Southwest gift cards
- Earn 2x points with Rapid Rewards® hotel and car rental partners
- Earn 2x points on local transportation and commuting (including rideshares)
- 2X points on Internet, cable and phone services; select streaming media
- All other purchases earn 1X points
Additional benefits and perks:
- EarlyBird Check-In® twice a year
- Earn 10,000 Companion Pass® qualification points each year
- Earn 1,500 Tier Qualification Points (TQP) for every $10,000 spent annually to achieve A-List status
- Get 25% back on in-flight purchases
- 6,000 anniversary points per year
Learn more about the Southwest Rapid Rewards® Premier Credit Card here.
Quick Rewards Plus Credit Card
annual fee: $69
award:
- Earn 2x points on Southwest® purchases including flights, inflight cards and Southwest gift cards
- Earn 2x points with Rapid Rewards® hotel and car rental partners
- Earn 2x points on local transportation and commuting (including rideshares)
- 2X points on Internet, cable and phone services; select streaming media
- All other purchases earn 1X points
Additional benefits and perks:
- EarlyBird Check-In® twice a year
- Earn 10,000 Companion Pass® qualification points each year
- Get 25% back on in-flight purchases
- 3,000 anniversary points per year
Learn more about the Southwest Rapid Rewards® Plus Credit Card here.
How to make the most of your airline rewards card
It’s not difficult to maximize the benefits of an airline rewards credit card. But it does require some strategic spending on your part. Whether you choose Southwest or another airline, the following tips can help you get the most out of your card:
- Learn about sign-up bonus requirements: Many airline credit cards offer generous sign-up bonuses, but they usually come with a spending requirement. Make sure you know how much it will cost and within what time frame you will receive your bonus. If you end up carrying a balance that’s too high to get a huge sign-up bonus, it might not be worth it.
- Understand the income structure: While some rewards cards offer a fixed earning rate on all purchases, many offer tiered rewards that offer higher earnings on certain categories. For example, travel rewards cards often offer more points or miles for airline and restaurant purchases, while other types of rewards cards may offer bonus points for dining or entertainment purchases. Familiarize yourself with how to earn points, miles, or cash back with specific cards, and make sure the rewards structure fits your spending habits.
- Avoid carrying a scale: Credit card interest rates can be high, usually around 20% or more. Avoid carrying a balance every month, as interest charges can quickly offset the value of any rewards earned.
- Stay loyal: Flying with the same airline or alliance can help you accumulate points or status faster. So when planning a trip, aim to stick with the same airline (as long as it makes financial sense).
- Develop a redemption strategy: Most credit card issuers offer several ways to redeem rewards, and some options may be more valuable than others. Therefore, it’s important to know the best way to redeem your miles. While flights are the most common redemption method, sometimes using points for seat upgrades, partner airline flights, or other travel-related expenses can provide better value.
- Consider annual fees: It’s common for rewards credit cards to charge an annual fee (although not all credit cards do). Generally speaking, the better the rewards and benefits, the higher the fees. So consider whether the benefits you get from the card outweigh this fee. In some cases, benefits like free checked bags and airport lounge access easily justify the expense. In other cases, you might be better off with a card that doesn’t charge an annual fee.
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If you’re an avid traveler, a travel rewards card can help you earn rewards on your purchases and receive other valuable travel-related benefits. If you want to open a new card, choosing one with a welcome bonus can further increase the value. That said, it’s important to pay your balance in full and on time each month so that interest charges and late fees don’t wipe out your income.
For Southwest Airlines customers, now is a great time to open a new Rapid Rewards credit card. However, be sure to compare the rewards with the fees and choose the card that best fits your budget and spending habits.
Please note that card details are accurate as of the date of publication but may be changed by the card issuer at any time. Please contact your card issuer to verify rates, fees and offers before applying.
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