Hotel Credit Card Bonuses: Apply Now, Save Later

If you've been considering a new credit card to rack up hotel rewards points, now is the time to make a move, even if you don't have your next trip planned yet. According to a study by NerdWallet, co-branded hotel credit cards are most likely to offer increased sign-up bonuses or limited-time offers in August.

Limited-time offers often have sign-up bonuses that are higher than usual by tens of thousands of points, potentially equivalent to hundreds of dollars in free hotel stays. These bonuses probably won't be available to use on summer travel -- most travel rewards cards give you three months to meet the spending requirement to earn a sign-up bonus -- but they should be ready just in time for Thanksgiving or the December holidays.

Here's how to take the long view and get the most for your hotel chain preferences through your credit card.

[See: 6 Ways to Treat Yourself on a Budget.]

Who benefits most from a hotel credit card. Hotel loyalists -- or consumers who stay at a specific hotel chain regularly -- may want to choose a hotel card over a general travel credit card. These co-branded credit cards are most beneficial to frequent customers. Those who stay at a hotel only once or twice a year will likely do better with a general travel card, with rewards that can be more flexible.

Hotel credit cards typically give you more rewards on purchases from a particular hotel chain and higher redemption values on rewards redeemed for free or discounted stays, along with hotel-specific perks like free room upgrades. If you prefer more flexibility when earning and redeeming rewards, you may want to opt for a general travel card.

[See: 50 Ways to Improve Your Finances in 2016.]

How to get the most out of your hotel rewards points. Timing and flexibility are important factors in getting the most value from your hotel credit card rewards. Here's how:

-- Understand the optimal time to stay: Each hotel rewards program is different, so it's important to know the optimal value of your points and how to redeem them for the most value.

-- Be flexible: The cardinal rule of traveling frugally is being flexible about your dates. This isn't an option for everyone, but if your travel time isn't set in stone, you can probably get better deals on your hotel stays. Book your hotel stay based on which dates require the fewest points and save the rest for a later trip.

[See: 12 Simple Ways to Raise Your Credit Score.]

-- Stay outside the city: What you may lose in excitement by picking a hotel on the outskirts of your desired destination you can make up for in savings to use on other parts of your trip. For example, staying in Newark, New Jersey, instead of New York City, or finding a hotel in Mississauga, Ontario, instead of Toronto, would leave you with rewards points to spare after a weeklong vacation. Choosing to be in the heart of those cities would afford you fewer days in hotel stays.

-- Look for bonus nights. Some programs offer bonus nights. For example, if you book a hotel room for five nights and redeem points to pay for the first four, you could get the fifth night's stay for free. If your hotel program has bonus stays, try to book a trip that's long enough to get that free night.

When to apply for other travel credit cards. The NerdWallet study also shows the best time to apply for other types of travel credit cards. For instance, if you're interested in a general travel or an airline credit card, you're most likely to get a higher sign-up bonus in November.

For most consumers looking for travel rewards, a general travel card, which allows earning and redemption of rewards on a variety of travel expenses, is usually the best option. Airline loyalists who check bags and seek perks such as priority boarding may want a co-branded airline card.

To find limited-time offers, research online to see the times that the desired card offers increased sign-up bonuses, and then wait to apply until one of these offers becomes available. Some of these offers happen at the same time every year. Your patience could yield hundreds of dollars of free travel and a useful new card in your wallet.

Erin El Issa is a former accountant and a staff writer for NerdWallet. She covers credit reporting and scoring, credit cards, consumer debt and other personal finance topics.