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There are various ways to maximize your credit card rewards for travel, including timing large purchases strategically and using shopping portals. These techniques can help you hit your travel goals more quickly and get you off on your next adventure. Learn more about travel rewards from credit cards and making the most of them.

Types of Credit Card Rewards for Travel

Just as there are many different types of credit cards, rewards from credit card use come in several varieties. When it comes to using rewards for travel, consider these options to find what best suits your needs:

•   Airline points and miles cards: With these credit cards, you typically earn miles or points on purchases made with the card. These can be redeemed with the particular airline’s rewards programs. Examples of airline credit cards include the Citi AAdvantage Mastercard and United Explorer Card.

•   Hotel credit cards: With this kind of travel credit card, you typically rack up points that can be used for rewards (such as upgrades or free nights) at a particular hotel chain. For instance, the Marriott Bonvoy Boundless Credit Card, Hilton Honors American Express Card, and IHG ONE Rewards Premier Credit Card are all examples of these cobranded cards.

•   Flexible currency cards: With these cards, you are not locked into a single airline or hotel chain. The points/miles and rewards you earn can be transferred to different programs, via Ultimate Rewards, ThankYou Points, and Membership Rewards.

You might use a conventional rewards credit card that earns cash back and lets you redeem your rewards for cash in the form of a statement credit, bank transfer, or check. You can then apply this toward travel-related expenses. The best rewards credit card for travel will be the one that suits your needs and spending style.

Credit cards that earn points typically let you redeem those points for things like travel, cash back, gift cards, and merchandise. The value of points will vary, but generally, a point is worth about $0.01. However, you may get better value when you redeem points for things like travel.

There are many factors to consider when deciding between credit card miles vs. cash back vs. points cards. Cash back cards often have low or no annual fees, and you can redeem your cash back for any purpose. However, they don’t usually have high-value welcome offers and may not offer as many benefits as other rewards cards. Credit cards that earn points or miles offer travel-related benefits and can help reduce the cost of travel, but they may charge large annual fees, and the value of the points and miles may vary.

Recommended: What Is the Average Credit Card Limit and How Can You Increase It?

5 Steps for Using Rewards for Travel

Here are five easy steps for using your rewards for travel.

1. Set a Travel Goal

First, set a travel goal. Decide where you want to go and when. If you are flexible on dates, you can save money or points. For example, flying a few weeks before Christmas instead of a few days before can save you a lot of money.

Is there a certain hotel or resort you dream of staying in? Do a little research to see what their rates are like. You might see that your target dates are at a time of high demand and cost due to a special event at that moment. You can then move your date a bit to avoid those extra-high prices. Or perhaps you are looking for just a two-night stay at a hotel near Lake Como, Italy, but all the lodging there has three-night minimums in summer. This kind of intel can be very useful as you plan.

Also, once you determine your goal, you can begin to develop a travel budget and start a travel fund to keep your money secure as you save and earn some interest.

2. Figure Out the Miles and Points You Need

Once you know where you want to go and when, you should see which miles and/or points you will need to get there. Scope out which airlines fly to your destination from your home airport (or another nearby), and which airlines they might partner with.

As you research routes that you might take, get a rough idea of how many miles or points the flights might cost. Be aware of blackout dates and other special considerations.

3. Research Airline and Hotel Loyalty Programs

Most hotels and airlines have loyalty programs in which you earn and redeem points and miles with that hotel or airline. Every hotel and airline has its own point system, though some have networks of partners, in which rewards can be used at multiple brands.

Airline partners within the same airline alliance allow you to redeem miles on flights operated by their partners. For example, Star Alliance includes airlines such as Air Canada, TAP Portugal, United Airlines, and many more. If you are looking at a flight, you may want to look up potential partners, as it is sometimes cheaper to book that flight with miles from a different partner.

4. Shop for Credit Cards That Will Help You Meet Your Goal

Once you know which airlines and hotels will work best for your travel goal, you can figure out which credit card rewards can help you reach that travel goal.

Credit cards with rewards can be an example of how families afford to travel. You can earn points and miles every time you swipe or tap and then redeem them for travel expenses, like flights and hotels.

You may want to apply for a credit card with the specific airline or hotel, or one that offers points that are transferable to airline and hotel partners (like Chase Ultimate Rewards or American Express Membership Rewards). Be sure to research which airlines and hotels these rewards programs partner with. You should also compare things like annual fees, welcome offers, earning structures, and benefits like travel insurance. Make sure you understand how credit card travel insurance works; that can be an important perk.

5. Track Your Progress

Once you have signed up for the credit card(s) that will help you meet your travel goal, there are a few things that you will need to track. If your credit card has a welcome bonus after spending a certain amount, you will need to track your progress toward that minimum amount. Some banks track this for you in your account, but others do not. Some other things that you may want to consider tracking include:

•   Spending requirements

•   Spending goals

•   Deadlines

•   Bonus reward categories

•   Points expiration dates

•   Hotel points to help save on hotel costs

•   Frequent flier miles

Recommended: Getting the Most Out of Your Credit Card Rewards

Tips for Maximizing Your Cards

Maximizing your cards is important to get the most rewards that you can. Follow this advice to help squeeze every last drop of value from your cards.

Label Your Cards

If you have multiple credit cards, it can be difficult to remember which one to use for which purchase. You may have one card that earns more on dining, another that earns more on gas, and a third that earns more on groceries. Some credit cards have rotating bonus categories that change throughout the year and may offer a short-term bonus earning opportunity, like extra points on gas purchases for the next few weeks.

If you have trouble remembering which card to use for which purchase, you can try using stickers or tape on the card with words like “gas” or “dining.” This can help you find the right card at the right moment. This strategy can also offer some helpful guidance if you have a partner who is not as invested in maximizing their cards as you are.

Time Large Purchases Strategically

If you know that you will have a large or several large purchases coming up in the near future, you may want to plan your credit card strategy around them. You might apply for a new credit card with a welcome offer shortly before making the large purchase. Some credit cards have welcome offers that require you to spend a certain amount during the first few months. If you would not otherwise spend that amount of money, timing it around the large purchase could help you meet this minimum spend and earn a hefty bonus (say, extra points).

Utilize Shopping and Dining Portals

Shopping and dining portals can give you extra miles, points, or money when you complete an eligible purchase. This involves going through a certain platform when making a purchase so that you can earn extra cash back, points, or miles. In this way, you can stack these portal rewards with other rewards, like the ones that you are earning on purchases on your credit card.

•   Portals can be through an airline, credit card, or independent cash back company. Some popular airline portals include American Airlines’ AAdvantage eShopping and AAdvantage Dining, Southwest Airlines’ Rapid Rewards, and Delta Air Lines’ SkyMiles programs, among others.

•   Credit card companies that offer their own online shopping portals include Chase, Capital One, and Barclays. Popular cash-back portals include Rakuten, Mr. Rebates, and Top Cashback.

•   To use a shopping or dining portal, you would sign up for an account with the specific portal program. When you are ready to make a purchase at a retailer, you can go to the portal program’s website first, and click through there to the retailer to complete your purchase. You could also download a browser button for the program, and then click on the button before you complete your purchase.

•   If you want to compare which portal will give you the best return for a retailer, CashbackMonitor.com lets you search by stores or rewards types.

Try Apps

If you find yourself with points and miles in a variety of reward systems (like various airlines, hotels, and credit card companies), you may have a hard time keeping track of it all. Apps, like Travel Freely and MaxRewards, can help you organize your credit cards, rewards, points, and miles. Apps can help you easily see which credit card to use for which purchase, how many rewards you have in various systems, view upcoming annual fees, and more.

Recommended: Understanding Purchase Interest Charges on Credit Cards

The Takeaway

Credit card rewards can help make travel more affordable. Once you have figured out which credit card can enable you to reach your travel goals, learning how to maximize your cards will likely boost the rewards you reap. By labeling your cards, timing large purchases, utilizing shopping and dining portals, and using apps, you may get closer to your dream vacation that much more quickly.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

What are some tips to maximize credit card rewards?

Some tips to maximize your credit card rewards are to label your cards, time your large purchases for maximum impact, and use shopping and dining portals, as well as apps.

How do I get the maximum benefits from my credit card?

Getting the maximum benefit from your credit card rewards can be about understanding when and how to spend to get the most points or cash back; timing purchases properly; and labeling your cards so you use each one when it’s most effective.

What is the smartest way to redeem credit card points?

The smartest way to redeem credit card points is the way that uses them most effectively to reach your goal. You can redeem them for high-value uses, such as flights or hotel stays, but it’s wise to do so in a way that gets the most bang for your buck. For instance, avoid prime travel periods (like holidays) and know how to maximize earning points, such as using shopping portals or timing big purchases properly.

Photo credit: iStock/martin-dm

**Terms, and conditions apply: This SoFi member benefit is provided by Expedia, not by SoFi or its affiliates. SoFi may be compensated by the benefit provider. Offers are subject to change and may have restrictions, please review the benefit provider's terms: Travel Services Terms & Conditions.
The SoFi Travel Portal is operated by Expedia. To learn more about Expedia, click https://www.expediagroup.com/home/default.aspx.

When you use your SoFi Credit Card to make a purchase on the SoFi Travel Portal, you will earn a number of SoFi Member Rewards points equal to 3% of the total amount you spend on the SoFi Travel Portal. Members can save up to 10% or more on eligible bookings.

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If you need wheels for an upcoming vacay, chances are you’re searching for rental options and trying to understand why prices can fluctuate so much. Typically, car rental rates vary based on supply and demand, just like airline tickets and hotel rooms. Lower availability generally means higher rental car rates.

There are some obvious times when demand will be high, such as spring break in Florida. Much of the time, though, there’s no way to know when a car rental company has a surplus or not, so car rental rates can seem to vary with no rhyme or reason. But with a little shopper savvy, you can snag the cheapest rental car rates for your next getaway.

Why Are Car Rental Rates So High?

First, a quick glance back: During the COVID-19 pandemic, people scrambled for car rentals to escape the doldrums of lockdown. As a result of demand, car rental rates shot up, reaching record highs in July 2021. While weekly rental car rates have dipped since the summer of 2021, they’ve remained consistently higher than before the pandemic.

Since then, rental rates have stayed elevated, due to supply and demand, supply chain issues, high interest rates, and depreciation and maintenance issues, among other factors. One survey found that prices of car rentals increased 35% in 2024.

Factors That Influence Rental Car Rates

Beyond supply and demand there are other factors that play into the prices of weekly or monthly car rental rates. It’s important to be aware of them when budgeting for your next family vacation.

Factors that can affect car rental rates include:

•   Age of the driver. Car companies may have a surcharge for renters under 25.

•   Type of car. Luxury brands and larger cars can push prices higher.

•   Pickup location. Prices can vary between airport vs. in-town branches.

•   Day of the week. Your pickup and drop-off days can influence cost.

•   Length of the rental. Deals can be found for short- and long-term rentals if you know the rules of the (rental) road.

•   Extra fees and add-ons, including insurance, additional drivers, and perks like satellite radio.

11 Ways to Get the Best Car Rental Rates

Wondering how to get the best car rental rates? Whether you’re planning a quick weekend getaway or an epic cross-country road trip, here are some tips for scoring the lowest price.

1. Book Early

Booking in advance can help you snag a low price, which can be an incentive for planning ahead. Reserving your rental car three to six months in advance can be the ideal time frame for finding the lowest prices. So if you know, say, you are going to be doing some summer travel and are making hotel reservations, don’t forget to book your car too. Bonus: You’ll likely have your pick of vehicles, with compact sedans, minivans, and SUVs available.

2. Shop Around Online

Online searching can help unlock travel deals. The same holds true for car rentals. There are a lot of online travel agencies (OTAs), such as Kayak and Expedia, that can do the comparison-shopping for you. They review all kinds of sites to find you the lowest car rental rates, so you don’t have to click through to each individual company.

But remember, these are third-party vendors. If you need to change or cancel your reservation, it can be easier to do so directly through a car rental agency.

3. Check for Membership Discounts

Most rental car companies offer loyalty programs that are typically free to join. In the same way you earn credit card points for swiping your plastic, you can earn points for each booking that can be applied toward a free rental or vehicle upgrade in the future.

There are also warehouse club memberships, such as Costco, that provide discounts at major car rental companies, such as Avis, Alamo, Budget, and Enterprise. AAA works with Hertz, Dollar Car Rental, and Thrifty to bring down costs for members.

Many travel credit cards can help you earn points to spend on whatever you’d like — including car rentals.

Recommended: ​​A Guide to How Credit Card Travel Insurance Works

4. Use Your Own Insurance

Your personal car insurance typically covers a rental car with the same limits and deductibles — as long as your trip is for personal travel. If you’re on a business trip, you might need commercial coverage or your company might have a commercial auto policy that can cover the rental.

Most rental companies prefer for you to pay with a credit card for your car rental reservation. But what most people don’t know is that some travel credit cards will cover basic collision insurance on rentals, saving you up to $30 a day. Check with your credit card provider to fully understand the terms and conditions.

5. Rent for the Weekend

If your schedule and plans allow, time your trip for the weekend, when you can nab the lowest rental car rates for a getaway. Rental car companies cater to business travelers who tend to need cars Monday through Friday, making rates per day higher during the week.

6. Rent by the Week

What if you have a longer adventure in mind? Rental companies can offer deals if you rent a car for the whole week versus just a few days. (And if you are planning a major road trip or renting a car all summer for beach getaways, check with rental companies and see if monthly car rental rates are available at a discount.)

If you are planning on covering considerable ground, be sure and ask about weekly car rental rates with unlimited mileage. That way, you can take to the open road without worrying about the odometer.

7. Avoid Airport Pickup

Picking up your rental car at the airport is convenient when a flight is part of your travel plan, but doing so can come with a higher price tag. Airport rental locations may charge a “Customer Facility Charge,” which can add up to several dollars a day.

Plus, demand can be high at the airport, leading to higher prices or lack of available cars. Renting from a local branch in town can save you money. Just be sure to factor in the cost of the transportation from the airport.

8. Don’t Add Additional Drivers

Most rental car agreements charge extra to add an additional driver — up to $15 a day, depending on the location. Some companies will waive the additional driver fee for a spouse, as long as you have the same address on your driver’s licenses.

9. Refuel Yourself

Rental car companies typically require you to return your vehicle with the same fuel level you left with. If you leave with a full tank and come back half full, they’ll charge you a fueling fee. This can trigger an additional “ka-ching” to your bill.

You can opt for a prepay fuel option, but rental car companies tend to charge a lot more for their gas than the going rate. So if you’re not rushing to an early-morning flight, it’s likely worth making a pit stop at a gas station. (Hint: If you have a gas credit card, use it to help boost your rewards and savings.)

10. Skip the Extras

Opting out of the extras offered by car rental agencies can save some cash. Make a playlist instead of paying for satellite radio, bring your kid’s car seat if possible, or utilize your phone’s map apps vs. renting a GPS with the car to help navigate.

11. Opt for a Modest Car

This may sound obvious, but the larger and fancier the vehicle, the bigger the price. Selecting an economy vehicle can save you hundreds on a weekly rental, and you’ll spend less on gas.

Recommended: Breaking Down the Different Types of Credit Cards

How to Get the Most Out of Your Car Rental Rewards Program

A car rental rewards program can help you earn points toward free rentals, allow you expedited check-ins, free car upgrades, and more. Familiarize yourself with the benefits of your tier status, so you can take full advantage of the perks. Also be sure to stay on top of any reward point expiration dates.

Recommended: Guide to Choosing a Rewards Credit Card

Alternatives to Car Rentals

Another way to save money on car rentals is to not rent a car! Hey, when money is tight, it’s worth exploring all your options.

•   If you’re visiting a city, explore local mass transit and taxi/rideshares. Book a conveniently located hotel where you can walk or bike to everything.

•   Investigate the cost of rideshare services. Could you take an Uber to the resort you’re staying at and then use shuttles to get around?

•   Consider car-sharing services like Getaround, Zipcar and Turo that can allow you to use a car just when you need it. If you have a vacation planned and need wheels for only one or two excursions, that might save you money and keep you from blowing your entire travel fund.

The Takeaway

If you need a car when traveling, you can find good deals on car rentals by doing some comparison shopping, being flexible with your travel schedule, and maximizing any rewards programs, whether offered by a car rental agency or your credit card. Doing so can help you put your money toward what makes a vacation the most fun and memorable vs. watching it fly out the window.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

Are car rentals per day or per mile?

Car rentals often quote a daily rate, but mileage can matter too. If you select a mileage cap, your car rental has mileage limits. If you hit the limit, you’ll be charged per extra mile, often at around $0.10 – $0.25 each.

What can be the hidden fees when renting a car?

You can learn about “hidden fees” by looking at the rental agreement and terms carefully. You can also request details from the car rental agency about whether charges will be assessed for returning a car with less than a full tank or after hours or for, say, renting a car seat.

How to calculate car rental rates?

In general, car rental rates are booked per 24-hour day. The pickup and dropoff times may allow a little wiggle room or not in terms of how you are charged (say, dropping the car off at noon when your rental had begun at 11am two days prior). Also, you need to consider extras, such as accessing satellite radio, insurance costs, or fees for returning the car to a different location than where you picked it up. To learn more, read the fine print or contact the car rental’s customer service.

Photo credit: iStock/GoodLifeStudio

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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A joint credit card can impact each cardholder’s credit positively or negatively, depending on how the account is managed.

Opening a joint credit card with someone you trust — meaning a spouse, partner, trusted friend, or family member — can seem like a good idea, but it’s important to be aware that you’re both 100% financially responsible for paying off the balance on the card. Plus, you both share privileges of making changes to the account, earning rewards, and using the card much the way you would as a primary cardholder of a solo account.

Learn more about joint credit cards and their pros and cons.

What Are Joint Credit Cards?

Just as the name suggests, a joint credit card is one that permits two users to share a single credit line. In turn, as primary cardholders, each individual is able to make purchases on the card, as well as update and manage account information. Plus, they’re each 100% responsible for paying off the card balance.

When applying for such a card, both individuals’ credit scores, and credit histories are reviewed. So if you both have strong credit scores, it could boost your odds of getting approved for a credit card with higher credit limits and favorable rates, terms, and perks.

But what might happen when one of you has a lower credit score? In that case, it could potentially hurt the odds of your getting approved for a credit card. Or it might lead to your being offered less favorable rates, terms, and lower credit limits. However, it could benefit the person with the lower score, as they’re piggybacking off the co-applicant’s higher credit score.

How Do Joint Accounts Work for Credit Cards?

As mentioned, both people will need to apply for a credit card. This means that the credit card issuer will review your respective credit scores and profiles. You both are equally responsible for paying off the balance on the card, and you each also have full rights to manage and make changes to the account. Plus, you can each make credit card charges, swiping or tapping at will.

A common misconception is that if you share a joint credit card account, your credit histories and scores will be merged. Not at all: Credit scores will always be looked at on an individual basis. In other words, the credit card payments on joint accounts will be reported to the credit bureaus, and this will be reflected on each user’s credit history.

Recommended: Credit Card Network vs Issuer: What’s the Difference?

How to Manage a Joint Credit Card Account

How you manage a joint credit card account is largely up to you and the co-owner on the account. While you both have full privileges to the account and can make changes, do you want to touch base before making any changes? Do you want to establish a monthly spending limit? It can be wise to agree to how you will use the account and what guardrails you may want in place before applying.

As for payments, you have decisions to make about who pays the bill. For instance:

•   You might decide it’s best to have one co-owner make payments and have the other person pay them back.

•   You could alternate making payments. That is, one account holder pays the January bill; the other takes care of February, and so forth.

•   Another payment guideline could be that you tally who bought what during each billing cycle and have each person be responsible for their fair share.

Recommended: What Is a Credit Card Chargeback and How Does It Work?

Impact of a Joint Credit Card on Your Credit Score

Joint accounts can affect your credit score. Here are a few scenarios to consider:

•   As all credit card payments on a joint account are reported to the credit bureaus, if you stay on top of payments, a joint account can help establish your credit. They can also help build your credit history.

•   On the flip side, if you fall behind on payments or the account goes to collections, that can negatively impact your credit scores. Debt gone to collections will stay on your respective credit reports for seven years.

•   Another way joint credit cards can impact your credit is credit utilization. If you run up a high balance and are using close to your credit limit, then it could depress your score. But if you keep a low credit usage ratio, then it could help establish or build credit from scratch.

•   Opening any credit card can affect your credit card history, which is another factor that plays into your credit score as tracked by the three credit bureaus.

Open too many credit cards in a short time period, and that may not be a positive thing; it looks as if you are trying to quickly access a lot of credit. But if you open a joint account and stay in good standing, it can lengthen each of your credit histories, which can be good.

Joint Credit Card vs Authorized User vs Cosigner

You might’ve heard the terms “authorized user” and “cosigner” tossed around when considering credit cards. While they both imply a level of joint usage on a credit card, they actually mean very different things.

•   An authorized user is a person you add to your account. They can use the card to make purchases. However, you remain the account holder and are fully responsible for paying off the card. And as the account holder, you are the only person authorized to manage and make changes to the account.

Your credit card payments are also reported on the authorized user’s credit file. So if you stay on-time with your debt payoff, this could establish or build your authorized user’s credit score.

•   A cosigner is someone who agrees to share financial responsibility on a credit card account. If you have a low credit score or are building credit from scratch, a lender will take into consideration the cosigner’s credit. A cosigner’s strong credit could help you get approved for a credit card you might otherwise not be granted. Furthermore, should you fall behind on payments, the cosigner is financially responsible for your paying off the balance.

Benefits of Joint Credit Card Accounts

Here’s a look at some of the advantages of having a joint credit card account:

•   Can help you land better credit card offers. If you both have strong credit scores, then it could potentially improve the chances of getting credit cards with higher credit limits and better terms and rates.

Should one of you have a lower credit score, it might help that person get approved for a better credit card.

•   Shared financial responsibility. If both co-owners of the credit card account are responsible and do their share to pay off the balance, it can help you stay on top of payments.

•   Streamlines bills. Instead of having two separate credit cards, putting both people’s transactions on a single account could simplify payments. You have one fewer bill to manage.

•   Can help build credit history. If one applicant is starting from scratch in terms of building a credit history, a joint account can help them establish themselves if payments are made on time and the credit utilization is kept low.

Disadvantages of Joint Credit Card Accounts

Now, consider the potential downsides of a joint account:

•   Shared financial responsibility. This is one of those “could be a pro, could be a con” factors. Why’s that? Well, if one person is doing most of the spending, you’re both on the hook for making payments. This could potentially get complicated if one person isn’t pulling their weight, financially speaking.

•   Potential personal complications. Should your relationship change or you end up fighting over transactions and other financial matters, a joint credit card could wind up being a difficult thing. Also, having a shared account could lead to each of you scrutinizing one another’s spending habits, for better or for worse.

•   Confusion over who pays for what and when. Even if you set up some basic guidelines, you might find yourself in a quandary as to who pays for what. Or maybe one of you overspends and it becomes challenging to pay off the balance or even the minimum payment due. A joint credit card could become a source of stress or arguing in this way if you can’t develop a good, fair system for responsible usage and timely payments.

Factors to Consider Before You Open a Joint Account

Before making a decision on whether to open a joint credit card account, you’ll need to decide on how doing so can benefit both parties. It can be wise to work through the following points:

•   Can a joint credit card help boost the odds of getting a credit card with better rates, terms, and more attractive perks? How can it help build both people’s credit histories?

•   Another important consideration is the payment arrangement. Who is responsible for making the payments? Or will you set it on autopay and link it to one person’s account? Who will be responsible for going through each billing statement and figuring out which transaction belongs to which user?

•   If you’re sharing a joint account with someone, it might be a good idea to have a savings account that serves as a cash cushion. You could each contribute a small amount every week, so it’s there in case money gets tight and you need help covering a credit card bill.

Do You Trust the Joint Account Holder?

As a joint credit card can impact your credit and financial situation, you likely need to truly trust the other party involved. If you’re relying on the other person to make payments on your behalf, can you count on them to do so? Also, it’s important that both parties are in a financially sound place where they can cover their share of the bill.

You also want to feel reassured that the co-account holder isn’t the type to splurge and put an extravagant purchase on the card. For instance, if you usually put, say, $250 a month on your credit card, you will likely want to know how much the other person usually rings up, as well as if they ever go buying sprees.

Are There Other Options to Consider?

Understanding exactly how a joint credit card works, what your respective responsibilities are, and how it impacts your finances and credit is important.

If a joint credit card doesn’t seem like the right fit, you can look into alternatives. These include keeping separate credit cards and possibly, if one person is building their credit from scratch, using a secured credit card.

Or the individual with a stronger credit history could add the other as an authorized user on their credit card account, as described above.

Recommended: Understanding Purchase Interest Charges on Credit Cards

Tips for Removing a Partner From Your Accounts

Unlike an authorized user, where you can simply remove someone from your account, you usually can’t remove one co-owner on a joint credit card. Typically, you need to close the account entirely.

Either person has the power to close the account. However, both parties will be responsible for making payments until the balance goes to zero. So, you’ll likely want to have a discussion before doing so. When would be a good time to close the account, and how will you go about handling paying off the remaining balance? Communication is key to making sure that closing the account doesn’t become a difficult situation.

The Takeaway

Opening a joint credit card can impact your credit, both positively and negatively. Typically, both applicants’ credit histories will be reviewed when seeking one of these cards, and each party, if given this kind of access to credit, will have full use of the account and full responsibility for the balance. If handled well, this can help establish and build your credit. If handled poorly, it can negatively impact your credit.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

How do shared finances affect my credit rating?

Sharing your bank accounts and budgets doesn’t inherently impact your credit rating. But when you open a joint credit card account, it can impact your credit histories, credit history length, and credit usage. With both parties responsible for the balance, it’s wise to think carefully about this kind of account. Another option is to be an authorized user on someone’s account who makes on-time payments and keeps their credit usage low.

Do both users on a joint credit card have the same credit score?

While both users on a joint credit card can be affected by the payment history and credit usage on the joint account, credit histories are always on an individual basis.

In other words, there’s no such thing as a shared credit account, and many factors go into someone’s credit score. So having a joint credit card doesn’t merge your scores or mean you’ll have the exact same score.

Is it advisable to open a joint account with my friend?

While you can open a joint credit card account with a friend, whether it’s a good idea depends on your financial habits and the level of trust between you two. Can they be trusted not to overspend and to do their part in paying off any credit card balance? A lot of discussion will need to take place before making this decision.

Photo credit: iStock/Jelena Danilovic

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third Party Trademarks: Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

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A hotel credit card is a type of credit card that’s cobranded with a major hotel group. They work just like any other credit card, and you can use them to make purchases anywhere that a particular credit card network is accepted. The main difference is that when you use the card for purchases, you earn points, which allow you to save money on hotels. You can redeem those points for free hotel stays and additional perks with that hotel group.

Deciding which hotel credit card is right for you entails more than just finding a hotel you like. To know if a hotel credit card is worth it, you’ll want to know what to look for in a hotel credit card and the pros and cons involved, as well as how redemption rates can vary.

What Are Hotel Credit Cards?

As mentioned, a hotel credit card is a type of card that’s offered through a partnership between a credit card issuer, such as a bank or credit card network (like Mastercard or Visa), and a major hotel. Hotel credit cards are considered open-loop cards, which means you can use the card to make purchases anywhere that type of card is accepted. This is in contrast to a private label credit card, which you can only use at a particular store.

Hotel credit cards feature a rewards program, which allows you to earn points for purchases made with the card. You can use the points you earn toward stays at hotels, allowing you to save money on hotels. These cards may also come with automatic elite status, which might include free wifi, extended checkout, and complimentary breakfast.

Keep in mind that hotel credit cards are different from a hotel loyalty program, which incentivizes guests to stay at hotels. In return for their stays, guests can earn rewards like free nights and complimentary meals. Hotel credit cards allow you to earn rewards more quickly by making purchases on your card.

How Do Hotel Credit Cards Work?

Hotel credit cards operate how credit cards work usually. You’re given a credit limit and can use your card to make purchases to that limit. You can pay your balance in full each month, or you can opt to pay it back over time, though this will lead to interest charges accruing.

The main draw of hotel credit cards is that there’s a rewards program and various extra perks offered. You rack up credit card points for using your card and then can redeem them for free hotel rooms. Think of it like the hotel version of an airline credit card, which allows you to earn credit card miles for flights.

Each hotel credit card has a different rewards program and awards points at different rates. The amount you earn hinges on the hotel’s rewards policy as well as your card’s tier. That’s because the same card can have different tiers, with higher tiers enabling you to earn rewards faster.

What to Look for in a Hotel Credit Card

With so many hotel credit cards to choose from, here’s what you’ll want to pay close attention to when researching and comparing your options:

•   Hotel brand: As hotel credit cards only allow you to redeem credit card points for that particular hotel or group of hotels, which major hotel group the card is cobranded with is important. Where are their hotels located, and how many hotels are there? Can you redeem points for any of their hotels? Are there blackout dates?

•   Rewards program: You’ll want to look at the earning rate for the rewards program. Also investigate where there other perks, such as automatic upgrades, complimentary wifi and breakfast, and extended checkout. Some hotel credit cards even feature an anniversary bonus.

•   Sign-up bonus: Some cards feature an attractive sign-up bonus. For instance, you might earn a free night’s stay for simply signing up or points if you spend a certain amount within the first few months after opening your account.

•   Additional perks: Beyond the basics, a hotel credit card might offer extras like credit card travel insurance and airport lounge access.

•   Credit card tier: As mentioned, a single hotel credit card might have several tiers to choose from. The higher the tier, the quicker you can earn points, and the more opportunities to earn points. Plus, higher tiers usually come with more perks. However, higher-tier credit cards also can be harder to qualify for. You might need a stronger credit score, higher income, and lower debt-to-income ratio than you would to qualify for a lower-tier card. Plus, a higher annual fee might apply.

•   Annual percentage rate (APR): If you plan on carrying a balance on your card, it’s particularly important to understand the APR of the card. Further, look at the terms and fees. What will you be charged for a late payment? Are there foreign transaction fees? Some credit cards, for example, charge no foreign transaction fees.

•   Fees: If the hotel credit card comes with an annual fee, will you use it enough to offset the fee? Take the time to crunch the numbers before committing.

Advantages of Hotel Credit Cards

When weighing whether hotel credit cards are worth it, consider some of these potential advantages:

•   Faster rewards earning: Compared to a hotel’s loyalty program, you’ll likely earn points faster with a hotel credit card. Plus, with a hotel credit card, there are usually more opportunities to earn rewards, as you rack up points whenever you purchase something with your card. You might also earn additional points for booking at the hotel using your card.

•   Additional perks: As mentioned, a hotel credit card might come with added benefits, such as free internet, extended checkout, complimentary breakfast, and room upgrades.

•   Travel-related benefits: You might be able to take advantage of trip protection, credits that you can use to pay for room service or spa treatments, and credit toward Global Entry or TSA PreCheck®.

•   Automatic upgrade to elite status: If a card offers an automatic upgrade to their hotel program’s elite status, you might be privy to room upgrades, credits toward room service, or concierge services.

Recommended: What Is an International Credit Card?

Disadvantages of Hotel Credit Cards

Here are some downsides of hotel credit cards to consider:

•   Limited uses: Because hotel credit cards are cobranded with a specific hotel brand, you can only use the rewards and perks when you stay at that particular hotel. Plus, there might be blackout dates, meaning you can’t use your benefits on those particular days, which are usually during times of high demand.

•   Possible annual fee: A card might come with an annual fee. The higher the tier, the higher the annual fee, if one applies. However, there’s a chance you could dodge this by focusing your search on no annual fee credit cards.

Recommended: What Is an International Credit Card?

Who Should Open a Hotel Credit Card?

If you’re someone who travels frequently and enjoys staying at major hotels as opposed to an Airbnb, then a hotel credit card could be a good idea. You’ll want to make sure you use the card enough to rack up points accordingly, and understand all the perks so you can make the most of them.

If the card comes with an annual fee, determine first whether the cash value of your points is enough to justify the cost. This could influence whether opening a hotel credit card makes sense.

Recommended: Credit Card Miles vs. Cash Back

How Redemptions and Earning Rates Vary on Hotel Credit Cards

The “earn and burn” rates for this category of rewards credit cards can vary greatly. Some offer two to five times or even higher the usual number of points when booking a stay at the hotel brand affiliated with the card. Plus, higher-tiered cards typically make it easier for you to earn points more quickly, perhaps with sign-up bonuses.

As no two hotel credit cards are alike, before deciding on a hotel credit card, look carefully at how you can earn points and how many points you can earn for certain types of purchases. By looking into how you can redeem your rewards and if there are any restrictions, you can also figure out how to make the most of your card.

How to Find a Hotel Credit Card

You might receive a hotel credit card offer via mail or in your email inbox. But your options aren’t limited to offers you’re preapproved for. Rather, the easiest way to find a hotel credit card is by way of an internet search. You can start by searching for your favorite hotel brands to see if they have a cobranded credit card available.

From there, you’ll want to narrow it down to a few options and compare how those hotel credit cards stack up against one another.

The Takeaway

Hotel credit cards are a category of rewards credit cards that allow you to earn hotel points through your spending on the card. You can then use those points toward hotel stays and other perks at the hotel chain affiliated with the card. When shopping around, you’ll find that there are a slew of options for hotel credit cards. It’s important to review details like the card’s rewards programs and other perks, as well as the APR and fees involved.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

Does my marital status matter in a hotel credit card?

By law, credit card companies cannot consider your marital status when determining whether to offer you a credit card. By extension, whether you’re married or not doesn’t affect your odds of getting approved for a hotel credit card, nor should it impact your terms, rates, or benefits.

How much is charged by hotels on your credit card?

A hotel might charge your credit card when you book a room, check in, or at checkout. When your card is charged might depend on how you made your reservation and the hotel’s policies. If in doubt, read up on the hotel or booking platform’s policies.

Is your credit card charged when you check out?

If you’re booking for a prepaid stay, your credit card will be charged at the time you make your reservation. If it’s a standard booking, then the hotel will charge your credit card at checkout. Any incidentals — think room service, massage treatments, and meals at the hotel — will typically be charged at checkout.

Photo credit: iStock/Prostock-Studio

**Terms, and conditions apply: This SoFi member benefit is provided by Expedia, not by SoFi or its affiliates. SoFi may be compensated by the benefit provider. Offers are subject to change and may have restrictions, please review the benefit provider's terms: Travel Services Terms & Conditions.
The SoFi Travel Portal is operated by Expedia. To learn more about Expedia, click https://www.expediagroup.com/home/default.aspx.

When you use your SoFi Credit Card to make a purchase on the SoFi Travel Portal, you will earn a number of SoFi Member Rewards points equal to 3% of the total amount you spend on the SoFi Travel Portal. Members can save up to 10% or more on eligible bookings.

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A retail credit card is a type of credit card that is a partnership between a bank or major credit card issuer and a retailer. Also known as a store credit card, retail credit cards usually come with discounts, rewards, and other perks that are specific to that retailer.

You might have received an offer for a retail credit card when you’re at the checkout at a brick-and-mortar store. Or you may have gotten an offer in the mail or while shopping online. When it comes to determining whether store credit cards are worth it, you’ll want to weigh their pros and cons.

What Is a Store Credit Card?

As mentioned, a store credit card is the same as a retail credit card. A store card is a credit card from a retailer, franchise, or group of stores. It might come with a sign-up offer, such as a one-time discount on your purchase. Other perks include a credit card points rewards program, special promotions, offers, and discounts on your purchases. Some might offer 0% financing on big-ticket purchases.

Store credit cards are not to be confused with retailer loyalty cards. Loyalty cards are a way to gain access to deals and promotions, and to earn points to swap for a discount on future purchases. However, they do not allow you to buy with credit, which is essentially borrowing money.

Recommended: Understanding Purchase Interest Charges on Credit Cards

How Do Store Credit Cards Differ From Other Credit Cards?

There are two main types of store credit cards: private label store cards and cobranded store cards. Private label credit cards differ more from other credit cards, as they are closed-loop cards, meaning you can only use the card at a specific retailer or group of retailers.

Closed-loop cards are more common than cobranded store cards. Cobranded credit cards are open-loop cards that partner with a major credit card network — think Visa, Mastercard, American Express, or Discover. As such, you can use this type of store card at the featured store or group of stores, as well as anywhere that particular credit card issuer is accepted.

Unlike private label cards, open-loop cards also may give you a chance to rack up points or scoop up rewards beyond spending in that specific store. Private label cards generally reserve rewards earnings for that particular store.

Benefits and Drawbacks of Store Credit Cards

There are both pros and cons to retail credit cards. Advantages include:

•   Easier to obtain: Retail credit cards are usually easier to qualify for than other types of credit cards. They typically require just a fair credit score. And because they report to the major credit bureaus each month, they still can help you build your credit when you’re starting out.

•   Often no annual fee: Many store credit cards don’t have an annual fee, which can save you money. This can be especially motivating if you don’t anticipate using the card that often.

•   Instant discounts: When you first sign up for a retail credit card, you might get a one-time discount on your first purchase.

•   Discounts, promos, and offers: As a store cardholder, you might be privy to exclusive ongoing discounts or special promotions and offers. The types of discounts and offers vary widely depending on the retailer and time of year. For instance, a retailer might offer a flat 5% discount on every purchase. Cardholders also might have access to special coupons and offers.

•   Rewards and cash back programs: Similar to other types of credit cards, you can earn points to use for store purchases or cash back.

•   Other perks: If you’re a cardholder for a particular retailer, you might receive other benefits, such as free or expedited shipping, financing on certain types of products, or more time to return items.

Here are some potential downsides of a store credit card:

•   High interest rates: Whereas the average credit card annual percentage rate (APR) was 21.47% in late 2024, interest rates for store credit cards average exceeded 30% for the same period. If you carry a credit card balance, it could take you longer to pay off your debt. Plus, you’ll owe more in interest.

•   Inflexibility in use: If you have a private label store card, or a closed-loop card, then you can only use the card to make purchases at that particular store or group of stores. Unless you shop frequently at that particular retailer, it might prove difficult to use often enough to make sense.

•   Lower credit limits: Store credit cards usually have lower credit limits than other types of credit cards. In turn, it could be harder to keep your credit usage down. A high credit usage, or credit utilization ratio, could hurt your credit score.

•   Deferred interest: A retail card might offer 0% financing for a period of time. Here’s the potential catch: If you don’t pay off your purchase before the promotional period ends, you might be on the hook for all of the interest owed from the purchase date onward.

To recap, here are the major pros and cons to keep in mind when considering if you should get a store credit card:

Recommended: Difference Between Credit Card Issuer and Credit Card Network

Are Store and Retail Credit Cards Worth It?

A store credit card could be beneficial if you are building credit from scratch or are new to credit. As they typically are easier to qualify for and often don’t have an annual fee, you can use it at your leisure to build credit.

It can also be worth it if you are a loyal devotee and shop frequently at a particular retailer. That way, you’ll make the most of ongoing discounts, exclusive sales, promotions, offers, and additional perks.

When to Consider Getting a Store Credit Card

As mentioned, if you’re building credit from scratch and don’t want to worry about annual fees, a store credit card could be a good choice for you. It could also be a solid option if you shop at that retailer enough to make use of the card’s perks.

A store credit card can also be a good idea if you don’t need a card with a high credit limit. Ideally, you’ll be able to pay off the balance in full each month.

When Not to Consider a Store Credit Card

If you don’t anticipate using a card very often or prefer a card that you can use more widely, then it might be best to forgo opening a store credit card.

A store credit card also is probably not the best choice for you if you tend to carry a balance. That’s because the higher-than-average interest rates can gobble up any savings you’ve earned on rewards and discounts.

Alternatives to a Store Credit Card

Not sure a store credit card is worth it for you? Here are some of the different types of credit cards to look into:

•   Cash back credit card: A cash-back card is a type of rewards credit card that offers rewards in the form of cash back, which can offset your spending on the card. For instance, with a card that offers 1% cash back, you’d get $1 back for every $100 you spend. The SoFi credit card is an example of a cash-back card, offering unlimited cash-back rewards on all eligible purchases.

•   Airline credit card: Airline credit cards are a kind of travel credit card cobranded with major credit card networks. Similar to a store or retail credit card, you’ll receive perks with a specific airline company if you make purchases on the card. Airline credit cards typically are open-loop cards, which means you can use the card anywhere that type of card is accepted.

•   Hotel credit card: Hotel credit cards are offered through partnerships between a hotel and a credit card network. With a hotel credit card, you get points toward that particular hotel’s rewards program. The card might also come with other benefits.

Recommended: Instant-Use Credit Cards

The Takeaway

A store credit card could be a good idea if you are building credit from scratch or if there’s a card offered by a retailer you love and shop at often (you could access valuable perks). Otherwise, it might make more sense to look at other options with greater flexibility in use and lower interest rates.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

Are store credit cards good for credit?

Store credit cards can help you build credit from scratch. They tend to be easier to qualify for than other types of credit cards. And if you practice good credit card habits, such as keeping a low credit usage and paying on-time, they can positively impact your score.

Will a store credit card build my credit limit?

Adding another credit card, no matter the type of credit card, can help build your credit limit. When you open a credit card, you receive a credit limit on top of those of your existing cards. For instance, let’s say you open a store credit card with a $2,000 limit, and your credit is capped at $10,000 among your other cards. By opening a store card, your credit limit will have increased to $12,000.

Should I cancel an unused store credit card?

You might consider closing an unused store credit card, but doing so could negatively impact your credit. That’s because it will lower your credit limit, which in turn increases your credit usage. Plus, it can impact your length of credit, which also plays into your score.

Will closing a store credit card hurt my credit?

Closing a store credit card could negatively impact your credit in two ways. First, it can lower your credit utilization ratio because your overall credit limit will decrease. Second, it could shorten the length of your credit history, which also impacts your credit score.

Photo credit: iStock/Prostock-Studio

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Third Party Trademarks: Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

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