Southwest Rapid Rewards® Premier Credit Card Review

As an experienced financial expert, I’ve had the opportunity to scrutinize and analyze a plethora of credit cards. Today, I bring you an in-depth review of the Southwest Rapid Rewards® Premier Credit Card from Chase. This card is primarily aimed at frequent Southwest Airlines flyers, offering a range of rewards and benefits that make it a compelling choice for those who often find themselves in the skies. Let’s delve into the specifics of this card, its key takeaways, pros and cons, and benefits to help you make an informed decision.

Southwest Rapid Rewards® Premier Credit Card Review

The Southwest Rapid Rewards® Premier Credit Card is designed to provide significant value to travelers who frequently fly with Southwest Airlines. With a variety of reward points and travel-related benefits, this card can be a powerful tool for those looking to maximize their travel savings and enjoy a more comfortable flying experience.

Overview

The Southwest Rapid Rewards® Premier Credit Card offers an impressive rewards structure, with 3x points for each dollar spent on Southwest purchases, 2x points for each dollar spent on Rapid Rewards hotel and car rental partners, 2x points for local transit and commuting, including rideshare, and 2x points for internet, cable, phone services, and select streaming. All other purchases earn 1x point per dollar spent. Furthermore, new cardholders can earn 50,000 bonus points after spending $1,000 on purchases within the first three months from account opening.

Annual Fee and APR

This card comes with an annual fee of $99. The APR for purchases ranges from 21.49% to 28.49% variable, which is relatively high. Therefore, it is crucial to pay off your balance in full each month to avoid hefty interest charges.

Sign-Up Bonus

The sign-up bonus of 50,000 points after spending $1,000 within the first three months is one of the standout features of this card. This bonus can significantly offset the cost of flights, making it a great incentive for new cardholders.

Travel Benefits

In addition to the rewards points, the card offers several travel-related benefits, including 2 EarlyBird Check-In® each year, 25% back on inflight purchases, lost luggage reimbursement, and baggage delay insurance. These perks can enhance your travel experience and provide peace of mind.

Southwest Rapid Rewards® Premier Credit Card Key Takeaways

1. Rewards Structure:
– 3x points on Southwest purchases
– 2x points on Rapid Rewards hotel and car rental partners
– 2x points on local transit and commuting, including rideshare
– 2x points on internet, cable, phone services, and select streaming
– 1x points on all other purchases
2. Sign-Up Bonus:
– 50,000 points after spending $1,000 within the first three months
3. Annual Fee:
– $99
4. APR:
– 21.49% – 28.49% variable APR for purchases
– 29.99% variable APR for cash advances
5. Travel Benefits:
– 2 EarlyBird Check-In® each year
– 25% back on inflight purchases
– Lost luggage reimbursement up to $3,000 per passenger
– Baggage delay insurance up to $100 a day for 3 days
6. Additional Perks:
– No foreign transaction fees
– Annual bonus of 6,000 points after your cardmember anniversary

Southwest Rapid Rewards® Premier Credit Card Pros and Cons

Pros

1. Generous Rewards Program: The card offers up to 3x points on Southwest purchases, which can quickly accumulate for frequent flyers.
2. Sign-Up Bonus: The 50,000 points sign-up bonus is substantial and can provide significant value, especially if you spend $1,000 within the first three months.
3. Travel Benefits: The card includes valuable travel benefits such as EarlyBird Check-In®, inflight purchase discounts, lost luggage reimbursement, and baggage delay insurance.
4. No Foreign Transaction Fees: This is a significant advantage for international travelers, as it eliminates the extra cost of using the card abroad.
5. Annual Bonus Points: The 6,000 points awarded on your cardmember anniversary can help offset the annual fee and provide ongoing value.

Cons

1. Annual Fee: The $99 annual fee may be a deterrent for some users, particularly those who do not travel frequently enough to justify the cost.
2. High APR: The variable APR ranging from 21.49% to 28.49% is relatively high, making it essential to pay off balances in full each month to avoid interest charges.
3. Limited Airline and Hotel Partnerships: The rewards program is heavily geared towards Southwest and its partners, which may not be ideal for travelers who prefer other airlines or hotel chains.
4. No Introductory APR: The card does not offer an introductory APR for purchases or balance transfers, which can be a drawback for those looking to finance large purchases or transfer existing balances.

Southwest Rapid Rewards® Premier Credit Card Benefits

Rewards Program

The rewards program is one of the primary attractions of the Southwest Rapid Rewards® Premier Credit Card. Here’s a detailed look at how you can earn and redeem points:
– Earning Points:
– 3x points for each dollar spent on Southwest purchases
– 2x points for each dollar spent on Rapid Rewards hotel and car rental partners
– 2x points for local transit and commuting, including rideshare
– 2x points for internet, cable, phone services, and select streaming
– 1x point for each dollar spent on all other purchases
– Redeeming Points: Points can be redeemed for Southwest flights, and the redemption process is straightforward. The value of points varies depending on the flight, but on average, each point is worth about 1.5 cents. This means that 50,000 points can be worth approximately $750 in Southwest flights.

Travel Benefits

The card offers several travel-related benefits that can enhance your flying experience and provide peace of mind:
– EarlyBird Check-In®: Cardholders receive 2 EarlyBird Check-In® each year, which can save time and ensure a better seat selection.
– Inflight Purchase Discounts: You can get 25% back on inflight purchases, which can add up if you frequently buy food, drinks, or Wi-Fi during your flights.
– Lost Luggage Reimbursement: If your luggage is lost or damaged by the carrier, you’re covered up to $3,000 per passenger, providing valuable protection and peace of mind.
– Baggage Delay Insurance: If your baggage is delayed for more than 6 hours, you can be reimbursed for essential purchases like toiletries and clothing, up to $100 a day for 3 days.

Additional Perks

– No Foreign Transaction Fees: This benefit is particularly valuable for international travelers, as it eliminates the extra cost typically associated with using a credit card abroad.
– Annual Bonus Points: Each year on your cardmember anniversary, you’ll receive 6,000 bonus points, which can help offset the annual fee and provide ongoing value.

Conclusion

The Southwest Rapid Rewards® Premier Credit Card from Chase is a robust option for frequent Southwest Airlines travelers. With its generous rewards program, substantial sign-up bonus, and valuable travel benefits, this card can provide significant value for those who often find themselves in the skies.
However, the $99 annual fee and high variable APR are important considerations. To maximize the card’s benefits, it’s essential to use it strategically and pay off balances in full each month to avoid interest charges. Additionally, the card’s rewards program is heavily geared towards Southwest and its partners, so it may not be the best choice for travelers who prefer other airlines or hotel chains.
Overall, if you’re a loyal Southwest flyer looking for a credit card that offers substantial rewards and travel benefits, the Southwest Rapid Rewards® Premier Credit Card is worth considering. Its combination of earning potential, travel perks, and ongoing value makes it a compelling choice for savvy travelers.
Remember, the key to maximizing any credit card is to align it with your spending habits and travel preferences. By doing so, you can make the most of the rewards and benefits offered and enjoy a more rewarding and cost-effective travel experience.