How Southwest's Payment Plan Works and What It Costs
What Southwest's Payment Plan Is
Southwest Airlines offers a payment plan that lets you split the cost of a flight ticket across multiple monthly payments instead of paying the full price upfront. The plan is called a "payment plan" or sometimes referred to through third-party financing partners. You make a down payment when you book, then pay the remaining balance in equal monthly installments over a set period—usually three, six, or twelve months, depending on the total ticket price and the financing partner Southwest uses.
The key difference from a credit card charge is that you are financing the purchase through a third party, not borrowing from your card issuer. This means the payment plan has its own terms, interest rate (if any), and approval process separate from your credit card account.
Key Takeaways
- Southwest payment plans require a down payment at booking, with the remaining balance split into equal monthly payments over three to twelve months.
- Interest rates and fees vary depending on which financing partner Southwest uses and your credit profile; some plans charge no interest if paid on time.
- You must complete the full payment plan before your flight date, or Southwest may cancel your reservation.
- The payment plan is separate from your Southwest credit card and does not build credit history with the major bureaus unless the financing partner reports it.
- If you miss a payment, the financing partner can charge late fees and may report the missed payment to credit bureaus, affecting your credit score.
How the Down Payment and Monthly Payments Work
When you book a Southwest flight and choose the payment plan option, you pay a portion of the ticket price immediately—this is your down payment. The exact percentage varies, but it is typically 25 to 50 percent of the total fare. The remaining balance is divided into equal monthly installments that you pay over the next few months.
For example, if your ticket costs $400 and you choose a six-month plan with a 25 percent down payment, you would pay $100 at booking and then $50 per month for six months. Each payment is due on the same day of the month. You will receive payment reminders via email, and you can set up automatic payments (ACH or card) to avoid missing a due date.
The payment plan must be completed before your flight departure date. If you have not finished paying by then, Southwest reserves the right to cancel your reservation. This is a hard deadline—there is no grace period once your flight date arrives.
Interest Rates and Fees You May Pay
Whether you pay interest depends on the financing partner and the plan terms. Some Southwest payment plans charge no interest if you pay on time and complete the plan as agreed. Others charge a fixed interest rate that is added to your monthly payment. The rate typically ranges from 0 to 20 percent APR, but this varies widely based on your credit score, the financing partner, and current market conditions.
In addition to interest, watch for these potential charges: a down payment fee (sometimes included in the down payment itself), a late payment fee if you miss a due date, and a prepayment penalty if you try to pay off the plan early (though some plans allow early payoff without penalty). Always review the financing agreement before you confirm your booking—it will spell out every fee and the exact interest rate you are being charged.
If the financing partner reports your account to the credit bureaus, on-time payments may help your credit score slightly, but missed payments will hurt it. A single late payment can lower your score by 30 to 100 points depending on how late it is and your overall credit profile.
Who Approves Your Payment Plan
Southwest does not approve the payment plan itself—a third-party financing company does. When you select the payment plan option at checkout, you are redirected to that company's approval process. They pull a soft or hard credit inquiry (you will see which one in the terms), review your income and debt, and decide whether to approve you and at what interest rate.
Approval is usually instant or takes a few minutes. If you are denied, you can try a different financing partner if Southwest offers multiple options, or you can pay the full ticket price upfront with a credit card or bank account. Being denied for one payment plan does not affect your ability to book the flight—it only means that particular financing option is not available to you.
The financing company is the one you owe money to, not Southwest. If you have questions about your payment plan, late fees, or interest charges, you contact the financing partner's customer service, not Southwest Airlines.
What Happens If You Miss a Payment
If you miss a monthly payment, the financing partner will charge a late fee—typically $25 to $35 per missed payment. They will also send you a notice (usually by email and mail) asking you to pay the overdue amount plus the fee within a grace period, which is often 10 to 15 days.
If you continue to miss payments, the financing partner may report the delinquency to the credit bureaus, which will damage your credit score. After 30 days past due, the account is typically reported as late. After 60 to 90 days, the company may refer the debt to a collection agency or pursue legal action, depending on the amount owed and their policy.
Southwest may also cancel your flight reservation if the payment plan is not completed by your departure date. This means you lose the ticket and any money you have already paid toward it. You would then need to rebook and pay the full price upfront or choose a different payment method.
How a Southwest Payment Plan Differs From a Credit Card
When you charge a flight to a credit card, you owe the credit card issuer, and the interest rate is your card's APR. When you use a Southwest payment plan, you owe the financing partner, and the interest rate is specific to that plan. The financing partner is a separate company—often Affirm, Klarna, Synchrony, or another lender—not your credit card company.
A credit card payment is a single transaction; a payment plan is a loan split into installments. If you miss a credit card payment, your card issuer reports it. If you miss a payment plan payment, the financing partner reports it. Both hurt your credit, but they are reported by different entities and may affect your score differently.
One advantage of a payment plan is that you may may have access to even if your credit score is lower than what a credit card issuer would require. One disadvantage is that you cannot change the terms once you have agreed—you must pay the full amount over the agreed period, or you risk cancellation and collection action.
Alternatives to a Southwest Payment Plan
If a payment plan does not work for you, consider these options: pay the full ticket price upfront with a debit card or bank account transfer; use a credit card and pay the balance over time at your card's APR (which may be lower or higher than the payment plan rate); book a cheaper flight on a different airline; or wait and book when you have saved enough to pay in full.
If you have a Southwest credit card, you may earn points toward future flights, which can reduce the cost of your next ticket. Some people use this strategy to lower the amount they need to finance. You can also check for Southwest promotions, which occasionally offer discounted fares or bonus points that reduce the ticket price.
Frequently Asked Questions
Can I pay off my payment plan early without a penalty?
Some plans allow early payoff with no penalty, while others charge a prepayment fee. Check your financing agreement before you book—it will state whether early payoff is allowed and whether there is a fee. If you want to pay early, contact the financing partner directly to confirm the exact payoff amount.
What if I need to cancel my flight after I have started the payment plan?
Canceling your flight does not cancel your payment plan. You still owe the financing partner the full amount you agreed to pay, even if you do not take the trip. Some financing partners may allow you to transfer the credit to a future flight, but you will need to ask them directly. Southwest's refund policy is separate from the payment plan terms.
Does a Southwest payment plan build my credit score?
Only if the financing partner reports the account to the credit bureaus. Not all payment plans are reported. Check your financing agreement or ask the financing partner whether they report to Equifax, Experian, and TransUnion. If they do, on-time payments may help your score, but missed payments will hurt it.
What credit score do I need to be approved for a Southwest payment plan?
There is no set minimum credit score. Approval depends on the financing partner's criteria, which may include your credit score, income, debt-to-income ratio, and payment history. Some partners approve people with scores below 600; others require 650 or higher. You will not know your approval odds until you apply.
Can I use a payment plan if I book through a travel agent or third-party site?
Payment plans are usually only available when you book directly through Southwest.com. If you book through a travel agent, Expedia, or another third-party site, you will not have access to Southwest's payment plan option. You would need to pay the full price upfront or use your own financing.