Southwest Rapid Rewards Visa

Summary

Pros

• Great rate of return, ~1.67% on everyday purchases, 3.34% on Southwest + related purchases
• Large sign-up bonus (worth up to $833.33) and 6000 points (worth $100) annually

Cons

• Must travel once per year to keep points active, and I believe you get the most milage from your points by using them on Southwest travel
• Must spend $2K within first 3 months to get sign-up bonus, $99 annual fee

The Southwest Airlines Rapid Rewards Credit Card.

Introduction

I've been using my American Express Blue Sky for quite a while. I like that 7500 points will get you $100 in credit towards travel expenses you charge on the card; a 1.3% return, which beats the more common 1% (1000 points = $100). The fact that you can apply it to any airline, hotel, or rental car company with no restrictions, and that it came with a 12-month 0% APY offer made me a fan. However, in examining my current travel needs, I looked for something that

American Express Blue Sky. An aesthetically pleasing card, but is it the best bang for my buck?

Discussion

The Soutwest Airlines Rapid Rewards Credit Card, is offered by Chase, and like the Amazon.com Rewards Visa Card, its fantastic for its specific purpose.

Say hello to my little friend.

I've been using the Amazon.com rewards card for over a year now, and I couldn't be happier—3% in the form of credit for future purchases synergizes with the free shipping and fact that I use Amazon.com regularly. Similarly, I'm a big fan of Southwest and their low, lows fees. With gasoline in California north of $4/gallon, it is actually cheaper for me to fly between San Francisco and Los Angeles than it is to drive (so long as I can remember to book 2+ weeks in advance to get the best price.

And that brings me to what I believe is the big weakness for this card: it is best suited for future spending with the partnering company. Also, a little foresight is needed to get the best value; if I need to fly to Los Angeles on short notice, the price (and corresponding rapid rewards point value) of a ticket may rise from $80 to $250 each way.

Conclusion

I believe that if you fly regularly on Southwest, the Southwest Rapid Rewards Credit Card is a viable option in the quest to get the most value out of your hard-earned money. As always, please do your due diligence, and compare the Southwest Visa to other travel cards you are considering. Some helpful numbers are included in the notes below.

Southwest Rapid Rewards can be redeemed for a variety of things.

Notes

Southwest Rapid Rewards Credit Card: 2 points/$ spent on Southwest and partners, 1 point/$ elsewhere. Points are valued at $416/24,960 points = $0.0167/point.

Blue Sky from American Express: 1 point/$ spent. $100/7,500 points = $0.0133/point.