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Southwest's Credit Card Shakeup: Higher Fees, Fewer Benefits
July 1, 2025
This week, Southwest dropped major credit card changes that have frequent flyers reconsidering their wallets:
- Southwest Rapid Rewards® Plus Credit Card: $69 → $99 (43% increase)
[[ SINGLE_CARD * {"id": "2159", "isExpanded": "true", "bestForCategoryId": "52", "bestForText": "Frequent Travelers", "headerHint" : "Additional Travel Benefits" } ]]
- Southwest Rapid Rewards® Premier Credit Card: $99 → $149 (50% increase)
[[ SINGLE_CARD * {"id": "2161", "isExpanded": "true", "bestForCategoryId": "52", "bestForText": "Frequent Travelers", "headerHint" : "Fantastic Travel Choice" } ]]
- Southwest Rapid Rewards® Priority Credit Card: $149 → $229 (54% increase)
[[ SINGLE_CARD * {"id": "2162", "isExpanded": "true", "bestForCategoryId": "52", "bestForText": "Southwest Loyalists", "headerHint" : "Generous Benefits and Perks" } ]]
The Priority card also loses its $75 annual travel credit, making the effective increase $155 for existing holders.
What You're Getting (And Losing)
New Benefits
- Free checked bags: Still included, but now feels hollow since Southwest eliminated free bags for everyone in May 2025
- Seat selection: Plus gets standard seats within 48 hours; Premier gets standard/preferred seats within 48 hours; Priority gets preferred seats at booking, plus free Extra Legroom upgrades
- Group 5 boarding: Out of 8 boarding groups under the new system launching January 2026
What's Disappearing
By December 31, 2025, all cards will lose 2x earning on:
- Local transit and commuting
- Internet, cable, and phone services
- Some hotel and car rental partners
The Priority card's $75 travel credit and upgraded boarding perks also vanish.
The Companion Pass Play
Southwest is offering a record welcome offer of 100,000 points after you spend $4,000 on purchases in the first 5 months through September 17th. Here's the strategic opportunity:
The Math: You need 135,000 points for Companion Pass. The bonus gives you 100,000 + 10,000 (annual boost) = 110,000 points. You need 21,000 more.
The Timing Trick: Apply in early September but don't complete the $4,000 spending requirement until after your December statement closes. This ensures points post in January 2026, giving you Companion Pass benefits through all of 2026 and 2027—nearly two full years.
Bridging the Gap: Earn the remaining 21,000 points through:
- Southwest business card signup
- Strategic spending in 2x categories
- Additional card spending (~$21,000 throughout 2026)
The Risk: Southwest has been surveying customers about potential Companion Pass changes. The rules could shift before 2026.
Better Alternatives
Airline Cards
- The New United℠ Explorer Card ($95): Free bags, club passes, better route network
[[ SINGLE_CARD * {"id": "2406", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Frequent Travelers", "headerHint": "Priority Boarding"} ]]
- The New United Quest℠ Card ($350): $200 annual TravelBank credit, two free bags, lounge access
[[ SINGLE_CARD * {"id": "2892", "isExpanded": "true", "bestForCategoryId": "52", "bestForText": "Frequent Travelers", "headerHint" : "Mid-Tier Choice Card" } ]]
- Delta SkyMiles® Blue American Express Card (See Rates & Fees) ($0): Free bags and priority boarding with no annual fee
[[ SINGLE_CARD * {"id": "263", "isExpanded": "false", "bestForCategoryId": "52", "bestForText": "Frequent Travelers", "headerHint" : "Entry-Level Card" } ]]
Flexible Options
- Chase Sapphire Preferred® Card ($95): Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening, transfers to 14+ partners
[[ SINGLE_CARD * {"id": "509", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Frequent Travelers", "headerHint": "Exceptional Travel Value"} ]]
- Capital One Venture Rewards Credit Card (See Rates & Fees) ($95): Earn 75,000 miles once you spend $4,000 on purchases within 3 months from account opening, 2x miles on all purchases
[[ SINGLE_CARD * {"id": "438", "isExpanded": "true", "bestForCategoryId": "52", "bestForText": "Frequent Travelers", "headerHint" : "High Travel Rewards" } ]]
- Capital One Venture X Rewards Credit Card (See Rates & Fees) ($395): $300 annual travel credit, lounge access, earn 75,000 miles once you spend $4,000 on purchases within 3 months from account opening
[[ SINGLE_CARD * {"id": "2888", "isExpanded": "true", "bestForCategoryId": "52", "bestForText": "Frequent Travelers", "headerHint" : "Luxurious Travel Benefits" } ]]
Cash Back
- Wells Fargo Active Cash® Card ($0): 2% cash back on purchases, earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months
[[ SINGLE_CARD * {"id": "2894", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Cash Back Seekers", "headerHint": "0 Annual Fee"} ]]
- Chase Freedom Unlimited® ($0): 1.5% cash back on all purchases
[[ SINGLE_CARD * {"id": "497", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Cash Back Seekers", "headerHint": "Fantastic Cash Back Card"} ]]
Cash Back
- Chase Freedom Unlimited® ($0): 1.5% cash back on all purchases
[[ SINGLE_CARD * {"id": "497", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Cash Back Seekers", "headerHint": "Fantastic Cash Back Card"} ]]
- Wells Fargo Active Cash® Card ($0): 2% cash back on purchases, earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months
[[ SINGLE_CARD * {"id": "2894", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Cash Back Seekers", "headerHint": "0 Annual Fee"} ]]
The Bottom Line
Southwest's changes reflect their shift from a unique value proposition to a conventional airline with premium pricing. The math now works for three groups:
- Companion Pass strategists: The 100,000-point welcome offer creates a real opportunity if you can execute the timing strategy
- Frequent Southwest flyers: Seat selection benefits justify the fees if you fly them regularly
- Everyone else: Consider alternatives—the value proposition has weakened significantly
Either go all-in on Southwest (if their routes work for you) or diversify beyond airline-specific cards. The middle ground - casual Southwest use with these higher fees - no longer makes financial sense. The Southwest era of easy value is over. Choose your next move accordingly.
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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.
