By Jason Steele
NEW YORK ( Credit.com) --Redeeming frequent flier miles has become so frustrating that many rewards card holders now look to hotel cards to earn the most valuable rewards. Lodging is a large travel expense, and hotel programs generally offer awards with fewer blackout dates and capacity controls than airline programs.
However, many hotel programs have recently devalued their programs by requiring many more points than they had in the past.
So with all of the recent changes to these reward programs, what do credit card users need to know to choose the best card?A great credit card generally starts with an attractive sign-up bonus, and hotel cards are no different. For example, the Hyatt credit card from Chase offers new applicants two free nights at any property worldwide. And since some of their most expensive hotels in Europe cost more than $1,000 a night, this offer can be extremely valuable. Points from spending Next, cardholders want to consider how many points can be earned from spending at various categories of merchants. Most cards will offer extra points when used at their properties, and some cards will offer bonus points for other categories of spending as well. But the real hard part is determining the value of the points, which can vary widely between programs. Look at both the minimum and maximum number of points needed for a free night, and how many points you need to stay at a hotel at one of your favorite destinations. Chance to earn status One of the nice perks of hotel cards is that in many cases, just having the card is enough to earn valuable elite status. For example, the Hilton HHonors Reserve card offers Gold status to all cardholders, which includes room upgrades and free breakfast. Other point redemption opportunities Hotel rewards are typically used for rewards nights, but many of these programs offer other ways to redeem points. For example, points earned in the Starwood Preferred Guest program can be transferred to airline miles with more than 30 different carriers. And as with all rewards credit cards, these products are best suited to those who pay their balance in full each month. Those who carry a balance should look for cards with the lowest interest rate, not rewards cards.