Hotel rewards credit cards give you the chance to stay at a luxurious hotel for free and are a great option for those who travel a lot. All you have to do is use the card to pay for items and services at the places you usually shop and eat, collect the points from these purchases, and redeem the points at participating hotels.
Choosing a Hotel Rewards Credit Card
The process of using a hotel rewards credit card really is as simple as previously described, but choosing one that works best for you isn’t as straightforward. There are dozens of these types of credit cards available, each claiming to be better than the other. But we all know that what’s “better” for one person may not be for another.
The pros and cons of some of these cards will be covered later in this article. But before you even get to that part, you need to know that if you’re one to keep a balance on your credit card, then a hotel rewards credit card may not be the best option for you. Some studies show that 60% of people keep a balance on their credit cards. If you’re part of this majority, your rewards points will end up costing you money instead of giving you something for free.
Maximize Your Hotel Rewards Points
To collect as many hotel rewards points as possible, you should use your hotel rewards credit card for your normal spending every time you can. Some people are hesitant to use a credit card for daily expenses because they’re afraid that they’ll go into unnecessary debt just to buy a carton of milk and some eggs. But this won’t happen if the amount you put to the credit card is paid immediately.
Comparing Hotel Rewards Cards
Ideally you should keep the balance on your hotel rewards credit card at zero. But there are a few cards that make it worth your time and effort to transfer a balance from an already existing credit card.
The Chase Flexible Rewards Platinum Visa Card, for example, offers a six-month zero-interest introductory period. After the introductory period, the interest rate goes up to 11.74%. The card provides one point for every dollar spent, which means that this is what you will earn on any transferred balances unless there are restrictions.