Hotel Rewards Credit Cards
Do you travel a lot? Have a favorite hotel you stay in all the time? A hotel rewards credit card may be just right for you.
Just like any other rewards card, you earn points toward something; in this case free stays at a hotel. In fact, some of the cards give you enough points with your first purchase to give you a free stay at one of their hotels. Quite a nice way to start out.
As with other rewards credit cards, hotel cards tend to run a little higher than average on their regular interest rate. As of this writing, many offer a 17.49% rate after the introductory period. The introductory period, of course, has an appealing, much lower rate. This can be very useful if you are going to pay the card off quickly.
How do you choose between them? There are a few factors to consider.
The first is to consider whether or not you will actually stay at the hotel offered. If there aren't any locations in the areas you tend to travel to or if you just don't like the hotel company, obviously you can rule that card out automatically.
Next you need to look at what the card will really cost you in comparison to the others you are considering. What makes the card a good deal will depend on how you tend to use your credit cards. If you carry a balance, the interest rate is extremely important. If you pay your balance off every month, it is less important, although still a consideration just in case you reach a time where you need to carry a balance for a time.
Next you need to take a look at fees. Annual fees are the most obvious. As of this writing, most hotel rewards credit cards do not appear to carry an annual fee but some do. You will also want to be aware of late payment fees, over limit fees and so forth. You may also want to know about balance transfer fees, cash advance fees and foreign exchange fees.
If you ever use your credit card to get cash advances you will need to know how much these will cost you. Cash advances always cost more than purchases, and the interest is charged from the day you get the cash advance; there is no grace period.
Finally, you also want to understand the points systems. How many points do you earn per dollar spent? Does it vary by where you spend your money or what you buy? How many points will it take to get a free night at the hotel? What restrictions are there?
A little bit of research and comparison can help you to make the most of your hotel rewards credit card. Free nights in the hotel of your choice can be quite wonderful, but make sure it will be worth what the credit card is costing you.