Create A Southwest Flights Your Parents Would Be Proud Of

7th Январь , 2020

Picking a Southwest Airlines credit card can be tricky because differences among the 3 customer cards may seem subtle at first glance. However, you get progressively more value from the cards with higher yearly fees.

The trio of cards reveal a primary perk: free frequent-flyer points posted to your account annually.

The fundamentals at a glance.

Southwest Rapid Rewards Priority Credit Card Southwest Rapid Rewards Premier Credit Card Southwest Rapid Rewards Plus Credit Card Read review Read review Read review Annual fee $149 $99 $69 Rewards 2 points per $1 spent on Southwest buys and Rapid Rewards hotel and car rental partner purchases. Earn 40,000 points once you invest $1,000 on purchases at the first 3 months your account is open. Earn 40,000 points once you invest $1,000 on purchases at the first 3 months your account is open.

Anniversary points Earn 7,500 points automatically following your cardholder anniversary every year. Earn 6,000 points automatically following your cardholder anniversary every year. Earn 3,000 points automatically following your cardholder anniversary every year. Earns tier qualifying factors?

Yes No Australian transaction fees None None 3% APR The continuing APR is 17.49percent — 24.49% Variable APR The continuing APR is 17.49percent — 24.49% Variable APR The continuing APR is 17.49percent — 24.49% Variable APR..

What’s different?

Annual fee.

The yearly charges aren’t exorbitant for these 3 cards when compared with a few premium travel cards, however you will need to choose whether the higher fee is worth it for the Southwest Rapid Rewards Premier Credit Card or the Southwest Rapid Rewards Priority Credit Card.

Anniversary points.

This is a main difference in gains. NerdWallet values Rapid Rewards points in an average of 1 penny each. At the value, the extra anniversary points are worth $30 per year, which makes up for the difference in yearly fees between those 2 cards.

Anniversary points develop to 7,500 with the Southwest Rapid Rewards Priority Credit Card. While ‘s not enough value on its own to offset the card’s yearly fee, it’s also not the only lucrative benefit you get with it.

Foreign trade fee.

In case you’ll use your credit card overseas, you’ll want one that doesn’wont charge a foreign exchange fee, such as the Southwest Rapid Rewards Premier Credit Card or the Southwest Rapid Rewards Priority Credit Card.

Tier qualifying factors.

The brief story here is that it’s a slight benefit if you don’t ‘re a huge spender. For most, it shouldn’t influence the choice.

The two pricier cards allow you to make 1,500 "tier qualifying points" for every $10,000 in purchasesup to $100,000 annually. Tier qualifying factors count toward elite status, which Southwest calls A-List or A-List Preferred. Its benefits include priority boarding and incentive rewards points for every single flight.

Total, qualifying points made by the Southwest Rapid Rewards Premier Credit Card and the Southwest Rapid Rewards Priority Credit Card don’t go the needle much. An additional 1,500 qualifying factors for spending $10,000 would account for only approximately 4 percent of your 35,000-point requirement for its lowest elite level. And tier qualifying points won’t help toward procuring an extremely coveted Companion Pass, because those moves are earned via Rapid southwest airlines phone Rewards points.

So consider the extra tier qualifying factors as a modest boost to ones you make with your regular flying on Southwest.

Priority benefits.

It Features day-of-flying perks the other cards don’t, such as:

A $75 Southwest yearly travel charge, which can be used toward Southwest buys such as flights, pet carrier fees and other day-of-travel purchases. Up to four upgraded boardings per year, based on availability. 20% back on in-flight buys (like beverages, Skype, messaging and movies).

What’s the same?

Sign-up bonuses.

Bonuses for new cardmembers can change frequently, but if more expensive cards get you a larger head start toward earning free flights or even a Companion Pass, that’s something to take into account.

Other than the differences above, all 3 cards make the identical spending rewards and bill the same APR..

Nerd Tip:

Other options.

An airline card is not your only option. General travel charge cards offer rewards which can be used on an assortment of travel spending, not just one airline. Redeeming rewards for credit from a Southwest Airlines buy or alternative travel spending essentially "erases" it out of your equilibrium.

That makes these cards a good alternative for those that spread their business around.

What’s more, a NerdWallet study reveals most people are better off using a cash-back cardrather than a traveling card of any flavor.

How to decide.

Should you don’t care about earning elite status on Southwest, won’t use the card overseas and can’t stomach higher yearly fees, proceed with the least expensive cardthe Southwest Rapid Rewards Plus Credit Card.

A Fantastic middle alternative is the Southwest Rapid Rewards Premier Credit Card. Its higher yearly fee is equalized from the extra anniversary points it offers, assuming you use the things toward a flight. It eliminates foreign trade fees and offers minor improvement toward elite status on the airline.

Avid Southwest flyers that appreciate perks on the day they fly ought to consider the pricier — but potentially most lucrative — Southwest Rapid Rewards Priority Credit Card. It lacks a few of the luxury benefits you’ll find some premium travel charge cards, but it still packs enough value to offset its yearly fee.

About the writer.

Gregory Karp.

Greg is a personal finance specialist at NerdWallet. He formerly worked in the Chicago Tribune and composed two money books. Read more.