Is It Time to Upgrade Your Hotel Credit Card?

A hotel credit card unlocks elite status, extra points and benefits when you stay at hotels. Whether you travel regularly or just a couple of times a year, it can pay to have a credit card from your favorite hotel brand. However, most hotels have multiple versions of their cards, so how do you know when to upgrade your hotel credit card? Learn more about the pros and cons of upgrading, what types of benefits to expect and reasons why downgrading can make sense.

Upgrading your hotel credit card is a fairly simple process but can be a difficult decision. Here’s how you should prepare to upgrade your card.

If you’re considering upgrading your hotel credit card or wondering why someone is willing to pay the higher fee, here are five reasons why it can be a good idea.

As your credit score improves, you may become eligible for better credit cards. This includes the ability to upgrade to a premium hotel credit card. Most banks include free tools for customers to access credit scores. Track your score and monitor its progress so you’ll know when you can qualify for a card with a higher level of benefits.

In general, premium hotel credit cards offer more earning power when you’re staying at that hotel. When using the card to pay for hotel stays, you’ll earn more points on every dollar you spend, which accelerates your path to elite status and free hotel nights.

Additionally, upgraded hotel credit cards include higher levels of elite status. Not only will you get a higher multiplier when using your credit card for hotel purchases, but your elite status tier may also provide a bigger bonus, as well.

While all hotel credit cards offer bonus points for spending at their respective hotels, they typically have different bonus categories. That’s also true for cards within the same family of hotels. For example, here are the bonus categories available from the Hilton family of credit cards.

While there is some bonus category overlap among these three cards, each has a different set of categories that may be more appealing to some travelers.

The benefits tend to increase in scope and value as you move up the ladder of hotel credit cards. These perks help to offset the higher annual fee, and if you travel frequently enough, they can easily justify the higher cost. Upgraded benefits may include annual credits, additional free nights, elevated elite status and more.

In addition to better benefits from the card itself, you’ll also receive more perks based on higher elite status. For example, if you upgrade from the Hilton Surpass to the Hilton Aspire, you’ll receive automatic Hilton Diamond elite status. Upgrading to Diamond status includes a 100% bonus on paid stays, executive lounge access, elite status gifting and more.

After using a hotel credit card for a year or longer, you may be more willing to pay a higher annual fee. This may be because you understand that the additional perks justify the cost or simply because your financial situation has improved. You can jump from a hotel credit card with no annual fee to one with a typical fee of around $100, or you may decide that a premium card with a fee of $350 or more offers enough value to be worthwhile.

“The biggest benefit of a premium hotel credit card is meaningful elite status with the hotel,” says Moli Aggarwal, a credit card expert at Maple Miles. “These statuses when staying in the property can provide meaningful benefits, such as late check-out, suite upgrades and small things that can transform your vacation.”

Choosing among credit card upgrade options can be overwhelming for some travelers. To help you decide if the upgrade is worthwhile, this list shares some available options and additional perks you can expect from each.

The Marriott hotel credit cards are offered by Chase and American Express, which can make the upgrade process challenging in some situations. Chase offers three cards, while American Express offers two. If you want to switch from a Chase card to an American Express card, you’ll need to apply for a new card instead of upgrading.

Getting more points on your purchases and better benefits during your stays sounds amazing. However, there are a few factors to consider before upgrading your hotel credit card.

Aggarwal recommends that travelers “determine the value you place on late check-out or suite upgrades. If you travel just a few times per year, these perks can be worth far more than the annual fees of premium hotel credit cards.”

While it can be appealing to upgrade your hotel credit card to unlock higher earning power and additional benefits, you might be better off downgrading your card instead. Here are a couple of scenarios where it makes sense to downgrade your card.

Hotel credit cards offer tremendous value when you’re staying at affiliated properties. You’ll earn bonus points toward future reservations and additional perks to improve your stay. Although you’ll pay a higher annual fee, it can be worthwhile to upgrade your hotel credit card to unlock even more rewards and perks. Before upgrading your card, compare the additional value received against the cost. In some cases, you’re better off closing your current card and applying for a new one to receive a welcome bonus offer and introductory annual percentage rate promotion.