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If you happen to’re asking your self whether or not the Southwest Fast Rewards® Premier Credit score Card is definitely worth the annual price, the reply ought to be primarily based on two questions: “Is the annual price price it for the primary yr?” and “Is it price it for the second yr and past?”
Right here’s the way to consider each questions so you may determine whether or not this card is best for you.
Is the annual price price it for the primary yr?
Whether or not the Southwest Fast Rewards® Premier Credit score Card’s annual price of $99 is price it through the first yr depends upon the sign-up bonus and whether or not you find yourself incomes it. Right here’s the present provide: 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 price between $600-$700 primarily based on NerdWallet’s valuation of Fast Rewards factors.
Due to this worth, you’ll virtually actually come out forward for the primary yr. To make your factors go additional, ebook Southwest’s cheaper “Wanna Get Away” fares. (Southwest’s redemption charges fluctuate with the money worth of their flights, so that you’ll shell out fewer factors when money costs are low.) And be versatile in case you can.
As an example, 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 would possibly have the ability to ebook 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 price price it for the second yr and past?
Whether or not the Southwest Fast Rewards® Premier Credit score Card’s annual price is price it after the primary yr is an even 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 price outright in case you redeem them nicely.
Nonetheless, 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 actually rack up factors. The cardboard earns 2 factors per greenback spent with Southwest Airways and Fast Rewards resort and automotive rental companions. These aren’t precisely stellar bonus alternatives in case you don’t plan to fly Southwest Airways usually.
If you wish to attempt to earn the Southwest Companion Go, you’ll have to earn 110,000 Fast Rewards factors in a yr. This implies you’ll probably must be devoted to flying Southwest Airways usually and charging your day by day bills to the cardboard. If you happen to plan to do that, the cardboard could completely be price it, since you may convey somebody with you on each flight for a minimum of a yr simply by paying taxes and costs.
Different journey rewards card choices
Whether or not a card is price its annual price isn’t nearly what the annual price is in comparison with the worth of any rewards you earn. It’s additionally about the chance value of not having used one other card as a substitute.
As an example, in case you worth resort factors greater than airline miles, the versatile IHG® Rewards Membership Premier Credit score Card normally affords a better sign-up bonus with the chance to earn factors extra rapidly (as excessive as 40 factors per greenback on IHG resort stays throughout your first yr). However remember that resort factors typically have a decrease worth; NerdWallet at present values these IHG factors at zero.6 cent every. The annual price on this card is $89. IHG has a spread of lodges the place you may redeem factors, from Vacation Inn Specific to higher-end Kimpton and InterContinental lodges.
The underside line
There’s no query that the Southwest Fast Rewards® Premier Credit score Card’s annual price could be price it in your first yr. Nonetheless, the annual price is probably not price it after that in case you don’t plan on flying with Southwest Airways or making purchases with their automotive and resort companions — or in case you worth resort factors greater than airline miles.
maximize your rewards
You need a journey bank card that prioritizes what’s vital to you. Listed below are our picks for the most effective journey bank cards of 2019, together with these finest for:
Planning a visit? Try these articles for extra inspiration and recommendation:
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