Balance Transfer to Southwest Credit Card with Introductory APR

If you’re looking to transfer high-interest credit card balances to a card with a 0% introductory APR, a Southwest credit card balance transfer could be an excellent solution. These cards from Chase offer competitive introductory periods with no interest charged on transferred balances, allowing you to pay off debt more affordably while also earning valuable Southwest Airlines rewards.

Southwest Credit Card Balance Transfer: An Overview

A balance transfer is a process where you move outstanding credit card debt from one or more accounts to a new card, ideally one with a lower interest rate or an introductory 0% APR period. By transferring balances to a Southwest credit card with an introductory APR offer, you can take a break from accruing interest charges while paying down your debt more aggressively.

Chase currently offers several co-branded Southwest Airlines credit cards with appealing balance transfer promotions. For example, the Southwest Rapid Rewards(r) Premier Credit Card comes with an intro APR of 0% for 15 months on balance transfers made within the first 60 days of account opening. After the intro period ends, a variable APR applies, currently 18.24% – 27.24%.

Transferring balances to a Southwest card not only provides temporary interest relief but also allows you to earn valuable Southwest Rapid Rewards points on your transfer fee and any new purchases made with the card. These points can be redeemed for flights, gift cards, and more, potentially offsetting the cost of the balance transfer fee.

How to Qualify for a Southwest Balance Transfer

To take advantage of a Southwest credit card balance transfer offer, you’ll need to meet Chase’s credit approval requirements. In general, you’ll have a better chance of being approved if you have a good to excellent credit score, typically in the 670-850 range.

The balance transfer process for Southwest cards is straightforward. Once approved, you’ll need to initiate the transfer within the specified timeframe (e.g., 60 days for the Premier card offer). You can typically request transfers from most major credit card issuers, but not from other Chase accounts.

It’s important to note that balance transfers often come with a fee, usually around 3-5% of the total amount transferred. However, this one-time fee is often well worth the savings you’ll achieve by avoiding high interest charges during the intro APR period. To minimize fees, consider transferring only higher-interest balances and leaving lower-rate balances as is.

Maximizing Value with Southwest Credit Cards

Beyond the balance transfer benefits, Southwest Airlines credit cards offer valuable rewards programs and perks for frequent flyers. Here are a few key ways to maximize value:

  • Earn Southwest Rapid Rewards Points: Every purchase made with a Southwest card earns Rapid Rewards points, which can be redeemed for flights, gift cards, hotel stays, and more. New cardholders can also earn elevated sign-up bonuses worth tens of thousands of points.
  • Achieve Companion Pass Status: By strategically timing credit card applications and meeting specific spending requirements, you may be able to earn the coveted Southwest Companion Pass, allowing a designated companion to fly with you for free (plus taxes and fees) for the remainder of the year earned and the entire following year.
  • Enjoy Travel Perks: Depending on the specific Southwest card, you may receive benefits like annual travel credits, reimbursed TSA PreCheck/Global Entry fees, upgraded boardings, and more.

By combining balance transfer savings with the rewards and perks of a Southwest card, savvy consumers can significantly reduce debt while earning valuable travel rewards simultaneously.

While Southwest Airlines cards offer compelling balance transfer promotions, they aren’t the only option worth considering. Other major issuers like Citi, Bank of America, and American Express routinely offer cards with 0% intro APRs on balance transfers, some with intro periods as long as 21 months.

However, it’s essential to evaluate each offer carefully, as factors like transfer fees, ongoing APRs after the intro period, and rewards structures can vary significantly. In some cases, a non-travel rewards card may be a better fit if you don’t frequently fly Southwest Airlines.

Additionally, a balance transfer may not make sense if you have a low credit limit on the new card or if you won’t realistically be able to pay off the transferred balance before the intro APR expires. In these situations, you could end up paying high ongoing interest rates, negating the potential savings.

To maximize the benefits of a balance transfer, it’s crucial to have a plan in place to aggressively pay down the transferred balance during the intro APR period. This may involve creating a budget, temporarily reducing expenses, or finding ways to increase your income. Keeping your credit utilization low after the transfer can also help improve your credit score over time.