Hotel Credit Cards

How do I pick a hotel credit card? The manner in which you choose a hotel rewards credit card depends on whether your objective in opening such a card is to garner a valuable initial rewards bonus or long-term benefit. If you’re after an initial bonus, choose the hotel credit card that offers the most free nights without requiring that you spend more than you would ordinarily in order to get them. For those interested in ongoing benefit (really only applies to brand-loyal frequent travelers) open the card affiliated with your existing hotel loyalty program, even if a competing hotel’s credit card provides more attractive rewards. After all, what good are a bunch of points to a hotel you’ll never visit?

What to look for when evaluating hotel rewards programs: Keeping an eye out for the following key terms will simplify your hotel rewards programs comparison and result in optimum usage of your newly selected hotel card:

1. Earning Rate: The rate at which you will be earning rewards together with your expected spending will give you a sense of how quickly you can reach the rewards redemption milestones you’re most interested in. Keep an eye out for cards that require quarterly registration for the highest earning rates.
2. Redemption Milestones: How many points does it take to get a free night? Do you need more points for nights at nicer hotels? Are any dates, hotels, or types of rooms off-limits? These are the types of questions you must answer because a hotel card’s redemption policy determines how lucrative its earning rate actually is.
3. Initial Rewards Bonus: Many hotel rewards credit cards offer a large number of bonus points during the first few months of card use, which can equate to a couple of free nights. Since these bonuses can be more lucrative than the rewards you’ll garner in an entire year of typical card use, they are a key feature to look out for. Keep in mind that some of the initial bonuses offered by hotel reward credit cards don’t kick in until you’ve spent a predetermined amount within the first few months of card use, so select a card that coincides with your monthly spending patterns.
4. 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 effective earn rate.
5. Expiration: The most common type of expiration policy found in hotel loyalty programs is due to inactivity (i.e. lack of point-generating actions) for an extended period of time. In these cases, a hotel rewards credit cards can be particularly useful since you do not have to actually stay at a hotel to earn points and preserve your current rewards balance. All you have to do is make at least one purchase on a regular basis. Having said that, your rewards program may be subject to a different expiration policy, so make sure you know the exact terms of your agreement.
6. Status points: Sometimes there are multiple credit cards affiliated with a single hotel chain. The number of status points each provides, both initially and on an ongoing basis, could be a deciding factor between them. Annual fees generally rise in accordance with status points, so only focus on this feature if you stay at a particular hotel chain regularly and can therefore extract a lot of value from fringe benefits like complimentary breakfast and room upgrades.

What’s the difference between hotel points and hotel membership status points? When it comes to hotels, there are two types of rewards points: those redeemable for free nights and those needed to move up the membership status ladder, which dictates the VIP extras that you’re entitled to (e.g. breakfast coupons, complimentary room upgrades, access to executive floors, priority check-in). While all hotel rewards credit cards give you points to earn free nights, only some provide status points as well. Status points are truly only important to people who actually stay at a particular hotel chain on a consistent basis, especially since they are often tied to the number of nights you accumulate in a calendar year.