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Southwest Airlines Rapid Rewards Visa Review

The Southwest Airline Rapid Rewards Visa credit card available through Chase has undergone some major changes in the credit card program in recent years. The original program allowed travelers to get a free flight after earning 16 credits or eight flights. The new rewards program is not nearly as generous but is still a rewards card worth looking at.

Rewards program

The current promotion offers 25,000 bonus points with your first purchase which can be used towards a free round trip flight. The 25,000 points can be used for ‘Wanna Get Away Fares’ – value airfares worth almost $400.00. The free flight promotion is based on a $208 Wanna Get Away two one way fare which is equal to 24,960 rapid reward points. Every dollar you spend using the card you earn one reward point. If you use the card to book travel on Southwest, hotel affiliates, or car rental partners you earn two points per $1.00. Points do not expire with this card as long as your card is active – meaning you have purchased an airline flight with Southwest or made other other purchases in the last 24 months. In addition to the sign up bonus every year you keep the card you get 3,000 points in an anniversary bonus worth $50 in Wanna Get Away airfare. Bonus points can be redeemed for airfare worldwide, hotel stays, car rentals, gift cards, and travel getaways.

APR

There is a variable APR of 15.24% for both purchases and balance transfers with the Southwest Airlines Rapid Rewards credit card. This airline credit card does not offer an introductory free APR for either purchases or for balance transfers. The rate is variable can go up as it is based on the current Prime Rate. There is a stiff penalty APR rate of 29.99% if you are late with a payment, exceed your credit limit or have a returned check. This penalty APR will be applied to a Rapid Rewards credit card account if you do any of the above on any account or loan you have with Chase. This penalty APR will be in place indefinitely once incurred.

Grace period

Chase offers a grace period of 21 days where you will not be charged periodic interest if you pay off your full balance each month. Interest is charged on balance transfers, cash advances and overdraft advances on the date of transaction.

Fees

There is an annual fee of $69.00 with this card which is lower than some airline rewards cards but more than others. If you wish to transfer a credit balance from another card there is a $5.00 or 3% of the amount of each transfer charged for each transfer whichever is greater. Using your card overseas for a foreign transaction will incur a 3% charge for each transaction in U.S. dollars. You do not want to make a late payment with this credit card since in addition dealing with a punishing penalty APR rate you will also be charged a penalty late fee of $35.00 if your balance is $250 or over. There is also a $35.00 charge for being over the credit limit, or for a returned check.