Southwest Credit Card Fee Shock: What You Need to Know (and How to Make it Work for You)

Published on November 23, 2025 at 4:34 PM

Content Contributed by: Wendy Busse-Coleman

So, if you’ve checked your mail lately and spotted Chase’s "Important Change Notice" about your Southwest Rapid Rewards Credit Card, you probably felt the same punch in the gut I did. That annual fee is shooting up to $229 – yep, a big jump that’s got a lot of us scratching our heads.

What Changed:

  • Chase and Southwest refreshed their co-branded cards in 2025.
  • Annual fees rose across all tiers, with the Priority card now at $229.
  • New perks include:
    • 4x points on Southwest purchases
    • 2x points at gas stations and restaurants
    • Free checked bags for you + companions
    • Complimentary seat selection starting in 2026
    • Anniversary bonus points

Why It Matters:

For frequent Southwest flyers, these perks can outweigh the fee. For example, if you fly 4 times a year, free checked bags alone save approximately $240. Already covering the $229 fee. Add seat selection, bonus points, and extra earning categories, and the card can deliver $500-$700 in annual value.

What To Do:

  • Frequent flyers (3+ trips/year): keep the card - the math works in your favor.
  • Occasional flyers: Consider downgrading to the $99 Plus card or switching to a flexible travel rewards card.
  • Everyone: Re-check fares after booking with points. Southwest lets you rebook if prices drop, maximizing your rewards.

In Closing:

The fee hike is real, but it doesn't have to be a deal-breaker. With smart use of perks and points, you can turn that $229 into a net gain.

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