Southwest Rapid Rewards Plus card review: A big sign-up bonus and low annual fee can help you boost your Rapid Rewards balance now for travel later — and your points never expire

Review: Is the Chase Southwest Rapid Rewards Plus credit card right for you?

Chase issues five different Southwest credit cards, and the Southwest Rapid Rewards® Plus Credit Card is the entry-level version. It's got the lowest annual fee ($69) of the bunch, making it ideal for those who want to minimize their out-of-pocket cost while still earning a lot of Southwest points.

It's a good time to consider any of the Southwest personal cards, because they're all offering an elevated welcome bonus for a limited time. With the Southwest Rapid Rewards® Plus Credit Card, Southwest Rapid Rewards® Premier Credit Card ($99 annual fee), and Southwest Rapid Rewards® Priority Credit Card ($149 annual fee), you can earn up to 80,000 points (50,000 points after you spend $2,000 on purchases in the first 3 months ,and an additional 30,000 points after you spend $10,000 on purchases in the first 9 months).

You'll also earn 5x points on Southwest purchases between December 1 and March 31, 2021, on up to $2,000 in spending per month (then 2x, which is the regular rate in this category).

This is the highest bonus we've ever seen on these cards, and the modest annual fee on the Southwest Rapid Rewards® Plus Credit Card is even more appealing. However, a low annual fee also means fewer benefits compared to other Southwest cards. This shouldn't be a factor if you're just an occasional traveler, but frequent Southwest flyers could get better value from the additional perks on the other Southwest credit cards.

The great thing about Southwest points is that they never expire, so even if you're staying put right now, your points will be ready to use when you feel comfortable traveling again. Southwest points are worth about 1.5 cents each toward Southwest airfare, so the welcome bonus from the Southwest Rapid Rewards® Plus Credit Card could get you around $1,200 in flights.

And for those who are already back in the air, the timing of this offer is perfect for earning the Southwest Companion Pass in early 2021. When you have the Southwest Companion Pass, a designated companion can fly with you for free (just pay taxes and fees) on paid and award tickets, essentially getting you near 2-for-1 travel while the pass is valid.

Before you decide on whether the Southwest Rapid Rewards® Plus Credit Card is the right pick for you, you'll want to compare it to the other Southwest cards, because you can only have one personal version at a time. And if you prefer flexibility, a card that earns transferable Chase Ultimate Rewards points might be a better bet.

Southwest is one of 13 Chase airline and hotel transfer partners, and cards like the Chase Sapphire Preferred® Card and Chase Sapphire Reserve® have broader bonus categories and more benefits. Just keep in mind that points transferred to Southwest don't qualify toward the 125,000 points you'll need to earn in a calendar year for the Companion Pass.

The Southwest Rapid Rewards® Plus Credit Card, like other Chase cards, is subject to the Chase 5/24 rule, so if you've opened five or more cards from any bank in the past 24 months, you won't be approved. You're also not eligible if you currently have any Southwest personal card or have received the bonus from one in the past 24 months.

Bottom line: The Southwest Rapid Rewards® Plus Credit Card is a solid choice if you like Southwest and want to earn a big welcome bonus for the lowest annual fee. But if you fly Southwest often (especially if you're got your sights set on the Southwest Companion Pass), the other Southwest personal cards could be a better fit if you can make the most of the benefits.

Southwest Rapid Rewards Plus vs other Southwest personal cards

Southwest Rapid Rewards Plus vs other airline credit cards

How to use points from the Southwest Rapid Rewards Plus card

Southwest has an expansive domestic route network (including Hawaii), and also flies to a number of international destinations in the Caribbean, Mexico, and Central America. Despite the pandemic, Southwest continues to add new routes, so stocking up on points now is a good strategy if you live near an airport served by the carrier.

Southwest doesn't have an award chart like other airlines do. Instead, the number of points required for an award flight is tied to the price of a paid ticket. On average, you can expect to get a value of 1.5 cents per Southwest point when you redeem them for award travel. 

Using your Southwest points to book award flights online is simple — once you log into your Rapid Rewards account, search for flights just as you would if you were looking for a paid ticket. The website gives you the option to toggle between the cash price and the points cost, so you can easily compare the two. 

If you're not flying Southwest right now, there's no harm in holding on to your points until you're ready, because they'll never expire. However, Southwest credit card holders do have other options for redeeming points through the More Rewards program, including merchandise, gift cards, car rentals, hotels, cruises, experiences, and international flights on other airlines. The value you'll get per point varies, but it's typically much lower than what you'd get if you redeemed for Southwest flights.

Southwest Rapid Rewards Plus card benefits and features

The Southwest Rapid Rewards® Plus Credit Card doesn't come with some of the other benefits offered by other Southwest cards (like elite-qualifying points or travel credits), but you'll still get a variety of travel and purchase protections and a handful of other perks.

Anniversary points bonus

Each year when you renew your Southwest Rapid Rewards® Plus Credit Card, you'll receive 3,000 points, which are worth around $45 in Southwest airfare. This can offset a big chunk of the $69 annual fee.

Points count toward the Southwest Companion Pass

The Southwest Companion Pass is widely considered to be one of the best deals in travel. It allows you to bring a friend or family member on paid and award flights for just the cost of taxes and fees — and you can use your Companion Pass an unlimited number of times while it's valid.

To earn the Southwest Companion Pass, you'll need to accumulate 125,000 qualifying Southwest points in a calendar year, and points earned from the bonus and spending on the Southwest Rapid Rewards® Plus Credit Card count toward that total. It makes the most sense to qualify for the Companion Pass early in the year, because it's valid for the rest of the year in which you earn it and the entire year after.

After you meet the minimum spending requirements for the Southwest Rapid Rewards® Plus Credit Card bonus, you'll have a total of at least 90,000 Southwest points (80,000-point bonus and at least 10,000 points from the spending requirement). That leaves just 35,000 points to hit the Companion Pass requirement, which you can earn from additional spending on the card or with Southwest Rapid Rewards partners, flying Southwest, or from the bonus on a Southwest small-business credit card (Southwest Rapid Rewards® Premier Business Credit Card or Southwest Rapid Rewards® Performance Business Credit Card).

Car rental insurance

When you use your Southwest Rapid Rewards® Plus Credit Card to pay the full cost of your car rental and decline the rental company's collision damage waiver, you'll get coverage for damage due to collision or theft. This coverage is secondary to your own personal policy in the US, but primary overseas (or if you don't have your own insurance).

Purchase protection and extended warranty

New purchases made with the Southwest Rapid Rewards® Plus Credit Card are covered for 120 days against damage or theft, up to $500 per claim and $50,000 per account. You can also save money because the card extends the time period of a US manufacturer's warranty by an additional year on eligible warranties of three years or less.

Lost luggage reimbursement and baggage delay insurance

When you use your Southwest Rapid Rewards® Plus Credit Card to pay for your fare, you (and your immediate family) are covered if your checked or carry-on luggage is lost or damaged by the carrier, up to $3,000 per passenger.

And if your bags are delayed by six hours or more, you're eligible for up to $300 in reimbursement ($100 a day for up to three days) for essential items like toiletries and clothing.

Other travel protections

If you're approved for the Visa Signature version of the Southwest Rapid Rewards® Plus Credit Card, you'll get access to travel and emergency assistance services, which can help arrange things like medical and legal referrals when you're away from home. Just keep in mind you're responsible for the cost of any services arranged.

All cardholders also get travel accident insurance, which covers accidental death or dismemberment when you use your card to pay for your air, bus, train, or cruise transportation. Visa Signature cardholders get up to $500,000 in coverage, and Visa Platinum members get up to $250,000.

Finally, you'll also get access to a roadside dispatch hotline, which can arrange services like towing and jumpstarts when you're on the road. Again, you'll be responsible for the actual cost of the service, which gets billed to your card. 

Southwest Rapid Rewards Plus card fees and costs

The Southwest Rapid Rewards® Plus Credit Card, in addition to charging a $69 annual fee, also adds foreign transaction fees — so it's not a good choice for purchases outside the US. If you're looking for a card to use overseas, there are plenty of cards that don't charge foreign transaction fees, including any of the other Southwest cards.

As with most cards, you'll also pay a fee for cash advances, balance transfers, and late or returned payments.

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