Cash back? Airline miles? Points? Reward tiers? If you are like most folks, you are a bit confused when
it comes to figuring out how hotel reward credit cards work.
Many credit card companies now offer hotel rewards credit cards that
feature rewards that are tailored toward those who frequently travel. These cards are meant as an incentive for consumers to stay
in hotels more frequently, and to use the card when they do. They work in much the same way that any other type of rewards credit
card work. You use the card. You get rewards. It’s that simple. Of course, if you use the card where the company wants you to use it,
you get even more rewards.
Hotel-Specific Rewards Credit Cards
Love staying at the Hilton? There’s a hotel rewards credit card for you! Citibank has a Hilton Visa that you can use anywhere, even at competing hotels. But when you stay at any of the participating hotels within the Hilton Hotel family, anywhere in the world, you earn six bonus points for every dollar you spend.
Hotels by Category
Other credit cards for hotel visitors may have different categories of hotels. Spending money at a hotel in a particular category will help you to get a particular amount of points. For instance, the Starwood Preferred Guest Credit Card by American Express gives guests the ability to earn different point levels at 1,000 different hotels all over the world.
Accumulating Points
Most hotel rewards credit cards allow you to accumulate one point for every dollar that you spend renting a hotel room. After you have accumulated a particular number of points, you can redeem your points for hotel related rewards. For example, you might redeem your points for hotel stays and free nights at your favorite hotels, for airfare, rental car costs, cruises, and so much more. Some hotel reward cards feature actual merchandise that you can redeem your hotel points for, like luggage and so on, while others may offer you cash back. After all, cash can always be used to make your next trip even better, right?
What to Look for When Choosing Hotel Rewards Credit Cards
When selecting the right hotel rewards credit cards for you, keep in mind that not all of them are “created equally”. Getting a hotel rewards credit card with little perks other than rewards is always good. Look for cards that offer:
- No annual fee. Do you want to pay the credit card company to use their services? With so many options out there, you really shouldn’t ever go for any type of credit card that carries an annual fee with it.
- Travel accident insurance. Some hotel rewards offer you free travel accident insurance that protects you should you be injured while traveling.
- Discounts at hotels. Depending on the hotel rewards credit card that you choose, you can sometimes get discounts on your hotel stays, just for using the card, right on the spot. You don’t have to wait for the discount; it is applied during the check-out process.
- Balance transfer option. Any good credit card, including hotel rewards credit cards, offer the option for you to transfer your balances from other credit cards onto the card.
- Low interest rates. Just as you would when choosing any other credit card, look for a card with a low rate of interest so that you can save money on any balance that you run on the card.
As you can see, taking out a hotel rewards credit card can be quite lucrative, and can help you save money on your love of traveling and staying in hotels!
Updated: January, 12 2012