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Top Southwest Business Credit Cards for 2024: Boost Your Company Travel Rewards
August 30, 2024
Introduction to the Southwest Business Credit Cards
Southwest Airlines, renowned for its customer-centric approach and expansive network spanning both domestic and international destinations, offers an impressive lineup of personal and business credit cards. These cards will supercharge your Southwest Rapid Rewards points earnings and unlock exclusive perks. In this deep dive, we're focusing on Southwest's two business credit cards: the Southwest Rapid Rewards® Premier Business Credit Card and the Southwest® Rapid Rewards® Performance Business Credit Card. Both are currently offering excellent welcome offers when you meet the minimum spending requirements.
What are the Southwest Business Credit Cards?
Southwest Airlines partners with Chase and Visa to offer two solid business cards:
- Southwest Rapid Rewards® Premier Business Credit Card
- Southwest® Rapid Rewards® Performance Business Credit Card
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Southwest Rapid Rewards® Premier Business Credit Card
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The Southwest Rapid Rewards® Premier Business Credit Card is a solid choice for business owners who frequently fly Southwest and want to maximize their Rapid Rewards earnings.
Key Features and Benefits
Welcome Offer:
- 60,000 points after spending $3,000 in the first 3 months. Note: this bonus offer is available to you if you do not have this card and have not received a new cardmember bonus for this card in the past 24 months. However, you are eligible for this card (including the bonus) if you have the Southwest Performance Business Card, or any personal Southwest credit card.
Rewards and Points:
- 3 points per dollar on Southwest Airlines purchases.
- 2 points per dollar on local transit and commuting, including ride-share services.
- 2 points per dollar on Rapid Rewards hotel and car rental partner purchases.
- 1 point per dollar on all other purchases.
Annual Fee and APR:
- The card comes with an annual fee of $99, which is applied to the first billing statement.
- APR ranges from 21.49% to 28.49% variable based on your creditworthiness and the prime rate.
Additional Benefits:
- 6,000 anniversary points each year (worth $60 - $100 depending on how you redeem) you'll receive every year on your cardmember anniversary, which cuts down on the $99 annual fee by at least 60% if you're getting at least a $0.01 value for your Southwest points.
- 1,500 tier qualifying points toward A-List status for every $5,000 spent – with no limit on the amount of TQPs you can earn. This can help you earn A-List or A-List Preferred status faster.
- 25% back on in-flight purchases such as drinks and Wi-Fi.
- Two EarlyBird Check-In® credits per year.
- No foreign transaction fees, which is beneficial for international travel.
- Employee cards at no additional cost, allowing you to set individual spending limits and earn rewards faster.
- Complimentary DashPass for a year, providing unlimited deliveries with $0 delivery fees and lower service fees on eligible orders from DoorDash and Caviar. Must activate by December 31, 2024.
- $500 fee credit for point transfers: Southwest will cover up to $500 in fees associated with point transfers each year. Transferring Rapid Rewards points to another member typically costs $10 per 1,000 points transferred, so you can transfer up to 50,000 points every year without paying additional fees (after Southwest's reimbursement).
Protection and Coverage:
- Baggage delay insurance: Up to $100 per day for three days for essential purchases due to baggage delays.
- Lost luggage reimbursement: Up to $3,000 per passenger for lost or damaged luggage.
- Purchase protection: Coverage for 120 days against damage or theft (up to $10,000 per claim and $50,000 per account).
- Extended warranty protection: Extends the original manufacturer's warranty by one additional year.
The Southwest Premier Business Card offers a substantial welcome bonus, and its $99 annual fee is effectively offset by benefits like the 6,000 anniversary bonus points, two EarlyBird Check-Ins, inflight savings, points transfer credit, and card protections. The generous welcome bonus can also simplify earning the Companion Pass, providing a strong incentive to apply for this card while the bonus is available.
In addition to the points value, remember that the up to 120,000 point sign-up bonus from these two Southwest business cards count toward the 135,000 points needed for the coveted Companion Pass. Once earned, the Companion Pass is valid for the remainder of the year and the following year, so earning it as early into the calendar year as possible will help you receive the maximum benefit of the pass.
Southwest® Rapid Rewards® Performance Business Credit Card
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The Southwest® Rapid Rewards® Performance Business Credit Card takes things up a notch. Though it carries a $199 annual fee, it offers a host of benefits that can make your business trips more comfortable, rewarding, and cost-effective.
Key Features and Benefits
Welcome Offer:
- Earn 80,000 points after spending $5,000 in the first 3 months.
The welcome bonus isn’t available to those who currently have this card, or those who have received a new cardmember bonus on this card in the past 24 months. However, you are eligible for this card (including the bonus) if you have the Southwest Premier Business Credit Card , or any personal Southwest credit card.
Rewards Structure:
- 4x points on Southwest purchases.
- 3x points on Rapid Rewards hotel and car rental partners.
- 2x points on rideshare, social media, search engine advertising, internet, cable, and phone services.
- 1x point on all other purchases.
Annual Fee and APR:
- The card comes with an annual fee of $199.
- APR ranges from 21.49% to 28.49% variable based on your creditworthiness.
Additional Benefits:
- 9,000 bonus points each year after your cardmember anniversary (worth $90 - $120 depending on how you redeem) you'll receive every year on your cardmember anniversary, which cuts down on the $199 annual fee by at least 50%.
- Up to 365 inflight Wi-Fi credits per year.
- Four Upgraded Boardings per year.
- Statement credit for Global Entry, TSA PreCheck, or NEXUS application fees (up to $100 every four years).Complimentary DashPass for a year, providing unlimited deliveries with $0 delivery fees and lower service fees on eligible orders from DoorDash and Caviar. Must activate by December 31, 2024.
- No foreign transaction fees.
- $500 fee credit for point transfers: Southwest will cover up to $500 in fees associated with point transfers each year. Transferring Rapid Rewards points to another member typically costs $10 per 1,000 points transferred, so you can transfer up to 50,000 points every year without paying additional fees (after Southwest's reimbursement).
Protection and Coverage:
- Baggage delay insurance.
- Lost luggage reimbursement.
- Purchase protection.
- Extended warranty protection.
This card is particularly beneficial for business owners who frequently fly Southwest, as it offers a robust rewards program and valuable travel benefits that can help offset the annual fee and enhance your travel experience.
How to redeem Southwest Rapid Rewards
You can redeem Rapid Rewards points in a number of ways. You’ll get the most value from points when you use them to book flights with Southwest Airlines.
You can also redeem your points to:
- Book hotel stays at more than 400,000 Rapid Rewards partner properties
- Book car rentals
- Pay for experiences such as spa packages, rafting and hiking
- Get gift cards or merchandise
Southwest Rapid Rewards Credit Card Score Requirements
While Southwest doesn't publicize a specific credit score requirement for their Rapid Rewards business credit cards, your odds of approval generally increase with a higher credit score.
Here's a quick breakdown:
- Good to Excellent Credit (700+): Best chances of approval
- 740+: Even stronger likelihood of getting the green light
- Below 700: Approval possible, but less likely
Keep in mind, credit score isn't the only factor. Southwest also considers your overall creditworthiness, including income, existing credit lines, and business financials.
Kudos Tip: Even with a stellar credit score, approval isn't guaranteed. Conversely, a lower score doesn't automatically mean rejection. Southwest looks at the bigger picture of your financial health when making decisions. Remember, every application is unique. If you're on the fence, it might be worth a shot – just be mindful of the potential hard inquiry on your credit report.
The Better Way To Earn Southwest Rapid Rewards Points
If you're on a mission to earn Southwest Rapid Rewards points but aren't necessarily on a mission for the Companion Pass or A-List status, consider a business credit card that earns Chase Ultimate Rewards. Southwest Airlines is a travel partner of Chase, meaning that you can transfer those points at a 1:1 ratio from Chase Ultimate Rewards to Southwest.
These three cards fit the bill and offer:
[[ CARD_LIST * {"ids": ["1100", "1099", "1098"]} ]]
While Southwest's business cards shine for those chasing Companion Pass or A-List status, this Chase Ultimate Rewards strategy can be a game-changer for pure point accumulation. It's all about matching your credit card strategy to your specific travel goals.
Bottom Line
The Southwest Rapid Rewards Premier Business Credit Card and the Southwest Rapid Rewards Performance Business Credit Card offer compelling value for frequent Southwest flyers, especially with the generous sign-up bonus, anniversary points, and accelerated earning on Southwest purchases can quickly offset the annual fees. The cards' ability to earn towards earning the coveted Companion Pass is a standout feature, potentially saving travelers thousands on flights. However, the cards' value diminishes for those who don't regularly fly Southwest or prefer more flexible rewards programs. For Southwest devotees, these cards can transform your travel game. But if Southwest isn't your main airline, you might find better value elsewhere. Remember, the key to maximizing these cards is flying Southwest frequently and leveraging their unique perks.
Southwest Rapid Rewards Businesss Credit Cards FAQs
Do the rewards I earn with my Southwest business card count as income?
No, your business credit card rewards are not considered income and, therefore, they are not taxable. Unlike money earned through traditional work, credit card rewards are considered rebates on items you purchased with a credit card.
Do I need to own a business to get a Southwest business card?
No. It is possible to get a business credit card without owning a business if you earn money independently, such as through freelance writing or driving for rideshare apps like Uber or Lyft. Typically, on your business card application, you can list yourself as the sole proprietor in the business tax identification number section.
What is the Southwest Companion Pass and how do I get it?
The Southwest Companion Pass allows you to bring a partner, friend, or family member on any flight for just the taxes and fees, which are only $5.60 per person for one-way flights within the U.S. This benefit applies whether you pay for your ticket with cash or points and is valid for both domestic and international flights with Southwest. You can use the pass as many times as you like during its validity period. Additionally, you can change your designated companion up to three times per calendar year, so you don’t have to bring the same person each time. The main restriction is that your companion cannot fly without you.
Southwest requires you to either fly 100 qualifying flight segments or earn 135,000 qualifying Rapid Rewards points in a calendar year to earn it. Luckily, the points you earn from signing up for one of the three personal Southwest cards gets counted toward the qualification requirement. In this case, with 120,000 points, you're 90% there already!
Does a Southwest business card count towards a Companion Pass?
Yes! All points earned with your Rapid Rewards business card count toward the Companion Pass.
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Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
