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In the event you’re asking your self whether or not the Southwest Speedy Rewards® Premier Credit score Card is definitely worth the annual charge, the reply needs to be primarily based on two questions: “Is the annual charge value it for the primary yr?” and “Is it value it for the second yr and past?”
Right here’s methods to consider each questions so you’ll be able to determine whether or not this card is best for you.
Is the annual charge value it for the primary yr?
Whether or not the Southwest Speedy Rewards® Premier Credit score Card’s annual charge of $99 is value it in the course of the first yr will depend on the sign-up bonus and whether or not you find yourself incomes it. Right here’s the present supply: Earn 40,000 factors after you spend $1,000 on purchases within the first three months.
So long as you meet the minimal spending requirement within the given period of time, you’ll earn these bonus factors. We estimate the sign-up bonus to be value between $600-$700 primarily based on NerdWallet’s valuation of Speedy Rewards factors.
Due to this worth, you’ll virtually definitely come out forward for the primary yr. To make your factors go additional, guide Southwest’s cheaper “Wanna Get Away” fares. (Southwest’s redemption charges differ with the money worth of their flights, so that you’ll shell out fewer factors when money costs are low.) And be versatile when you can.
As an illustration, on the time of publication, a one-way “Wanna Get Away” flight from Indianapolis to Los Angeles on Oct. three was 6,145 factors. However the value to fly roughly two weeks later, on Oct. 16, was greater than double: 15,142 factors.
To determine what flights you may be capable to guide with the factors out of your sign-up bonus, use the Southwest web site to test factors costs for a number of locations.
Is the annual charge value it for the second yr and past?
Whether or not the Southwest Speedy Rewards® Premier Credit score Card’s annual charge is value it after the primary yr is a much bigger query. First, contemplate that you just’ll obtain 6,000 factors yearly in your cardmember anniversary, which can cowl the worth of the annual charge outright when you redeem them properly.
Nevertheless, the true worth of this card in the long run comes from flying Southwest Airways regularly with paid tickets, and spending sufficient in your bank card to essentially rack up factors. The cardboard earns 2 factors per greenback spent with Southwest Airways and Speedy Rewards lodge and automotive rental companions. These aren’t precisely stellar bonus alternatives when you don’t plan to fly Southwest Airways often.
If you wish to attempt to earn the Southwest Companion Go, you’ll must earn 110,000 Speedy Rewards factors in a yr. This implies you’ll doubtless must be devoted to flying Southwest Airways often and charging your each day bills to the cardboard. In the event you plan to do that, the cardboard might completely be value it, since you’ll be able to convey somebody with you on each flight for at the very least a yr simply by paying taxes and costs.
Different journey rewards card choices
Whether or not a card is value its annual charge isn’t nearly what the annual charge is in comparison with the worth of any rewards you earn. It’s additionally about the chance price of not having used one other card as a substitute.
As an illustration, when you worth lodge factors greater than airline miles, the versatile IHG® Rewards Membership Premier Credit score Card normally affords the next sign-up bonus with the chance to earn factors extra rapidly (as excessive as 40 factors per greenback on IHG lodge stays throughout your first yr). However needless to say lodge factors usually have a decrease worth; NerdWallet at the moment values these IHG factors at zero.6 cent every. The annual charge on this card is $89. IHG has a spread of resorts the place you’ll be able to redeem factors, from Vacation Inn Categorical to higher-end Kimpton and InterContinental resorts.
The underside line
There’s no query that the Southwest Speedy Rewards® Premier Credit score Card’s annual charge will be value it in your first yr. Nevertheless, the annual charge will not be value it after that when you don’t plan on flying with Southwest Airways or making purchases with their automotive and lodge companions — or when you worth lodge factors greater than airline miles.
Easy methods to maximize your rewards
You need a journey bank card that prioritizes what’s essential to you. Listed below are our picks for the most effective journey bank cards of 2019, together with these finest for:
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