For frequent travelers, hotel credits cards can be a great way to earn room upgrades, complimentary breakfasts, free stays, and amazing travel discounts. Hotel credits cards are also perfect for people who usually stay in the same hotel chain whenever and wherever they travel. For those who like to hop hotels, flexible hotel credit cards are good options. If you are looking to get a hotel credit card, here are few things you need to know:
Different types of hotel credit cards
There are two major types of hotel credit cards: co-branded and general travel. Co-branded credit cards are issued by specific hotel chains. Co-branded cards are suitable for travelers who are loyal to a single hotel chain and would like to earn loyalty points.
Many co-branded hotel credit cards also have tie-ups with airlines and brands to give more rewards to their customers. General hotel credit cards are not offered by a single hotel chain. These cards offer flexibility since there are a host of brands and programs that are part of the rewards program.
Advantages of hotel credit cards
- Benefits of using hotel credit cards include free nights, room upgrades, cash back, merchandise, discounted airfares, and leisure experiences.
- Many co-branded hotel credit cards offer membership perks such as late checkouts, guaranteed availability of rooms, room upgrades, complimentary Internet, complimentary refreshments, and breakfast.
Limitations of hotel credit cards
- One of the main limitations can be the annual fees charged by most hotel credit cards. Also, these cards have the highest purchase APRs.
- Many hotel credit cards may have a complicated rewards program that customers may find hard to navigate.
- Also, hotel credits cards may not be accessible to many people since there is a prerequisite of high FICO score (between 670 and 700).
- Many cards require customers to spend a high amount in order to be eligible for their rewards programs.
Factors to look for in hotel credit cards
Before picking any hotel credit card, you should look at the various factors that are common among most hotel credit cards.
- Read through the rewards programs and cardholders’ benefits.
- Double-check for fine print in the terms and conditions.
- Look for sign-up bonuses.
- Subtract the annual fees amount and check whether the benefits that you will earn are worth the high annual fees.
Comparison factors for hotel credit cards
When there are multiple options for hotel credit cards, there are certain parameters that can help in finding the card that is best suitable for the customer.
- While comparing hotel credit cards, check which card is easier for earning reward points with your spending habits.
- Check which cards have the minimum number of limitations in terms of spending limits and redemption of points.
- It is essential to understand whether the benefits and rewards will be useful or not.
- Check if there will be any opportunities to utilize the rewards.
- Hotel credit cards will be useful for the customer only if they are loyal to the brands on the rewards programs.
Popular hotel credit cards
Here are some of the commonly used hotel credit cards available in the market.
- Capital One® Venture® Rewards Credit Card: This card has zero intro fee for the first year; after one year, the annual fee is $95. The ARP can vary between 14.24% and 24.24%. Once a customer spends around $3000 within the first 3 months, they are eligible for 50,000 miles.
- The Hyatt Credit Card: This card has an annual fee of $75 with APR ranging between 17.24% and 24.24%. A customer is eligible for 40,000 bonus points on spending around $2000 within the first three months.
- Hilton Honors Ascend Card from American Express: The annual fee is $95 with variable APR of 16.99–25.99%. Customers can earn 75,000 bonus points when they spend around $2000 within the first three months of membership.