Is it better to book a hotel with a credit card?

It is better to book a hotel with a credit card than with other payment methods because it offers better consumer protections and valuable rewards while also helping you build credit. In addition, even if a hotel allows you to pay another way, they still may require you to have a credit card on file. This is because hotels need the ability to charge your card after your stay for incidentals.

While most hotels will allow you to pay with a debit card and use the same card for incidentals, using a debit card still causes you to miss out on key credit card benefits, which you can learn more about below.

Reasons Why It’s Better to Book a Hotel With a Credit Card

Better consumer protections 

Credit cards offer $0 liability for fraudulent purchases, which is useful if someone at the hotel tries to use your card information. Debit cards offer fraud protection, too, but it’s not as comprehensive. Credit cards also may provide useful benefits like travel insurance or purchase protection that can come in handy if your trip gets canceled or the hotel doesn’t give you what you paid for.

Rewards 

Many credit cards offer rewards, and there are plenty of travel-focused credit cards that provide extra savings at hotels. You can pick between general-purpose travel cards that give bonus rewards on any hotel stay and cards partnered with hotel brands that offer rewards with a specific hotel’s loyalty program. The best cards have initial bonuses worth hundreds of dollars and can save you hundreds more each year with ongoing rewards.

Credit building 

Making purchases with your credit card and paying them off on time can gradually help you build credit. While one purchase in isolation won’t have much impact on your credit standing, if it’s part of a pattern of responsible use, your credit score should increase over time. Paying off your hotel stay in full by your due date is the best course of action for your credit.

Buy now, pay later 

Unlike a debit card, cash or check, a credit card doesn’t require you to have the money on hand immediately. The credit card company pays for the charge when you make it and won’t require any payment until weeks after your billing cycle ends. If you need to, you can even pay your stay off over several months with interest.

You might need one anyway 

Some hotels may only accept credit cards. Others will let you use different payment methods, but may still require you to put a credit card on file so they can charge incidentals such as room service or any damage/cleaning fees you might incur.

Hold isn’t on your actual money 

Many hotels put a hold on your card in order to ensure that you’re able to pay for any potential incidentals or fees. If you use a credit card, this means you simply won’t be able to use a portion of your credit limit until the hold is lifted after you check out. But if you use a debit card, the hold prevents you from using the same amount of actual money in your bank account.

If you’re looking for the perfect card to use to book your hotel stay, you can check out WalletHub’s selection of the best hotel credit cards, including offers affiliated with a variety of major hotel brands.