Hotel Credit Cards

That’s a personal question. No, really! How you go about comparing hotel credit cards and choosing one to apply for depends on a few individual factors.

• Your travel habits obviously matter because you need to decide whether you travel enough for a hotel credit card to make sense and, if so, whether you can commit to a single hotel chain.


• Your credit score is important, too, because most hotel credit cards require good or excellent credit for approval. If you don’t know your score, you can check it for free on WalletHub.


• Your rewards preferences also play a role. Are you more interested in a big initial bonus or a card to use for years?

1. Convert Earning Rates to Dollars – Credit card points and miles are worth about a penny apiece on average. But values vary widely among hotel credit cards.
   
   So find out how many points you’ll need for a free night at each hotel chain. And compare the amount you’d have to spend to earn that many points with the cost of purchasing a reservation in cash.


2. Get a Personalized Recommendation – WalletHub’s latest report on the Best Hotel Rewards Programs includes a tool that will help you find the right hotel rewards for your individual needs.


3. Read Reviews – Hotel credit card reviews can tell you a lot about each individual offer. And you can learn more from reviews of each hotel’s rewards program, more generally.
   
   For example, you can see what WalletHub’s editors think of Hilton Honors, Marriott Rewards, IHG Rewards and the rest of the most popular hotel loyalty programs.


4. Consider All-Purpose Travel Rewards – Hotel credit cards require you to sacrifice flexibility by committing to a single hotel chain. General-purpose travel rewards credit cards, on the other hand, reward you at the same rate on all travel-related purchases. And they allow you to redeem earnings for any travel expense.
   
   So if you discover that you won’t earn considerably more with a hotel credit card, you may to opt for the more flexible option.

Keep an eye out for the following key terms and potential restrictions when looking into a hotel rewards program. Doing so will simplify your search for a hotel credit card and help you get the most from whichever card you choose.

1. Earning Rate – The number of points that you’ll earn for each $1 that you spend is obviously quite important. And hotel credit cards generally offer different earning rates for different purchase categories. Some credit cards also require you to sign up for bonus rewards in certain categories on a quarterly basis.


2. Rewards Tiers – With certain credit cards, you earn rewards at a particular rate until you’ve spent a predetermined amount, at which point the rewards will come in at a faster or slower pace.
   
   While this type of tiered rewards program is not that common with hotel loyalty programs, it’s something to watch out for as it can affect your overall earning rate.


3. Cost of a Free Night – How quickly you’ll earn hotel points doesn’t mean much if you don’t know how much they’re worth. So find out how much a free night costs, in terms of both points and dollars.


4. Redemption Limitations – Do you have to cover the full cost of a reservation with points, or can you use “cash,” too? Do you need more points for nights at nicer hotels? Are any dates, hotels, or types of rooms off-limits?
   
   It’s important to ask yourself these sorts of questions because they speak to the usability of a given hotel’s rewards.


5. Initial Rewards Bonus – Many hotel rewards credit cards offer a large number of bonus points for spending a certain amount during the first few months your account is open. This can get you at least a couple free nights right off the bat.


6. Expiration Dates – Oftentimes, hotel points will expire if there’s no activity on your account for a certain period of time. This is one reason why only frequent travelers should get hotel credit cards. Regularly making purchases and redeeming your rewards keeps you safe from expiration dates.


7. Status Points – Some hotel chains have multiple credit card offers. The number of status points each provides, both initially and on an ongoing basis, could be a deciding factor between them.
   But annual fees generally rise along with status-point earning rates. So only focus on this feature if you stay at a particular hotel chain regularly. Doing so will allow you to get value from fringe benefits like complimentary breakfast and room upgrades.

Most hotel chains have their own loyalty programs. They are free to join and enable customers to progress toward free nights and other perks by earning points with each reservation. For example, members in Hilton’s HHonors rewards program earn HHonors points, while those in Starwood’s SPG program earn Starpoints. And getting a hotel’s credit card is simply a more exclusive way to earn more of those points at a faster clip.

Now, here’s where things get a bit confusing. Some hotels also have different “status” points, which are based on the number of nights you stay per year and dictate what benefits you receive. Such status points aren’t directly redeemable for free nights, like a program’s standard rewards points. But spending more on a hotel’s credit card can help you earn them and thus reach a higher rung on the status ladder faster.

Wyndham Rewards is the best overall hotel rewards program, according to WalletHub’s latest comparison of the most popular hotel loyalty programs. And it’s followed closely by Best Western Rewards and Marriott Rewards.

But you can see which program is the best for your needs by using WalletHub’s Hotel Rewards Calculator. A lot depends on personal preference and how much you spend on hotel rooms, after all.

Sort of. Travel reward credit cards offer either miles or points that in most cases can be redeemed for either hotel or airfare bookings made through any travel agency or website. In other words, while all credit cards use a single rewards currency (i.e. points, miles or cash back), some allow you to redeem for broader perks. This can be useful in the sense that travel might not be your top priority down the road, in which case redeeming for something else, like a gift card, could be more rewarding.

Yes, you can get more than one hotel credit card. But whether you should do so is another story.

Using different rewards cards for different types of purchases could give you the most overall earning power. This is called the Island Approach. But if you already have a hotel rewards card, the most strategic move would be to get a card with great rewards in your next biggest expense category.

For example, someone who stays at a Marriott Hotel every other week and also spends a lot on gas may want to get both a Marriott Credit Card and a gas credit card. And a frequent flyer who already has a hotel credit card may want to opt for one of the best airline credit cards or the best all-around travel rewards cards.

So getting multiple hotel credit cards really only makes sense for people who:

• Regularly stay at 2+ hotel chains – 20 nights per year at each is a good benchmark.


• Don’t mind using numerous credit cards – Most hotel credit cards don’t reward you that well on non-hotel purchases. And you can’t neglect your other expenses. So having multiple hotel credit cards means using at least three rewards cards.


• Can’t do better with all-purpose travel rewards – The best travel rewards credit cards offer hundreds of dollars in initial bonuses as well as the equivalent of at least 2% cash back on all purchases. And they allow you to redeem for any type of travel-related expense.
  
  So if you can earn as much or more with one travel rewards card, why face the hassle of managing multiple hotel credit cards?