Getting the most from
your hotel credit card

Hotel credit cards generally share the same purpose: to help cardholders reduce the costs associated with their hotel stays. However, there are two main types of hotel credit cards.

The first type is single-chain hotel cards. These cards are specific to one hotel brand, and they’re geared to the most loyal customers. For someone who knows they prefer to stay at a particular chain, a single-chain hotel card can be the right choice.

The second type is a group hotel card, which is also the most common option of the two. The main difference is that unlike single-chain hotel cards, group hotel cards cover multiple hotel chains that fall under the same corporate group. Many of the major hotel chains you may be familiar with are part of a group.

Single-chain hotel credit cards

Single-chain cards are designed to reward loyal customers who choose to stay with that chain. Frequent stays booked with your card can help you earn higher rewards and achieve higher status levels in the hotel chain’s loyalty program. These types of cards are best for cardholders who travel to the same locations often, where they know the hotel chain has property locations.

Pros of single-chain cards

• Single-chain cards reward loyalty and frequent stays, often providing generous rewards opportunities for cardholders.
• Cardholders sometimes get special treatment when booking rooms or checking in, such as a reduced room rate or a priority line at the front desk.
• These cards usually have a simple, streamlined rewards program that isn’t complex to use. Redeeming points toward hotel bookings is also straightforward.

Cons of single-chain cards

• You’re limited to a single hotel chain’s room availability. If you're traveling to areas where they may not have coverage, you won’t be able to use your points.
• Single-chain hotel cards tend to be hyper-focused on earning rewards for hotel bookings. They’re less likely to offer other bonus spending categories.
• These cards may be less likely to offer other redemption options or travel points transfers.

Group hotel credit cards

Group hotel cards are the most widely available option. They’re offered by many of the leading hotel chains, and some hotel groups actually offer multiple cards to appeal to different types of travelers.

Pros of group cards

• Large hotel groups have many properties in their collections around the world, which provides cardholders with a large variety of locations, hotel styles, and price points from which to choose.
• Group cards may have a wider range of perks and benefits, including discounts with partners.
• If your travel style or frequency changes, many group cards have different card tiers that you can upgrade or downgrade to.

Cons of group cards

• Some group hotel cards charge annual fees.
• Booking rooms during peak travel times in popular areas may be challenging, and it could cost you a lot of points.
• Your points are usually tied to a hotel loyalty program, and you may give up other redemption options that general rewards cards offer. However, some group hotel cards may let you transfer points to an airline partner.

To get the most out of credit cards with hotel rewards, many cardholders take advantage of welcome offers and rewards programs. Consider looking into special card offers, too, such as 0% intro APR on purchases and balance transfer offers.

Earn the welcome offer

Hotel points credit cards often attract new cardholders by offering a generous sign-up bonus. These usually require you to meet a certain minimum spending requirement within the first few months of opening the account. In some cases, earning this bonus can equate to one or more free nights. Higher-tier hotel cards usually have bigger bonuses, but they may also have a higher spending requirement.

Spend strategically to earn points

To earn the most points on your hotel card, think about your bonus category spending. Most hotel credit cards will offer bonus points for money spent with the associated hotel chain. Some have additional bonus categories like airline tickets, dining, gas, or groceries. Remaining purchases will typically earn a base rate (usually one point per dollar spent).

Consider using your hotel card to pay for purchases in the bonus categories. For purchases that only earn the base rate, you may want to switch to a different card, such as a cash back card that has a higher flat-rate earnings structure.

Use the credit card benefits

Many hotel credit cards offer perks and benefits, but you may have to activate them or at least be aware of them in order to take advantage. For example, as a cardholder, you may be entitled to room upgrades, late checkout, or premium Wi-Fi, but you’ll have to inquire about those amenities when you check in.

In addition, some cards offer a free night award on your card anniversary, though you may have to meet a certain set of criteria. There could also be hotel partnerships that provide discounts, statement credits for various types of spending, and other perks. Regularly reviewing your card account can keep you up to date on new offers.

Avoid revolving a balance

Hotel points credit cards can offer a lot of value, but they often come with a high purchase APR. If you carry a balance for a long period of time, using the card may become costly. That’s because the interest you’ll pay each month can negate the rewards you earn.