RateCity.com.au
powering smart financial decisions

Aside from the convenience, one of the major benefits of using a credit card are the potential rewards.

If you’re a frequent traveller and you’re looking for a credit card that rewards your everyday purchases as well as your hotel stays, then credit cards with IHG Rewards may be worth considering.

For travellers that regularly stay at IHG properties such as the Holiday Inn, Crowne Plaza or the Intercontinental, credit cards with IHG Rewards may open up a new world of travel opportunities.

IHG has a huge national and international portfolio of hotels, so if you travel regularly for work or leisure, opting for a credit card that rewards your stay might make your dollars go further.

As interest rates on reward cards tend to be higher than standard cards, IHG Rewards credit cards are probably not well suited to those who aren’t frequent travellers. In this case, a low-rate standard credit card might be a better fit. Read on to find out if credit cards with IHG Rewards will work for you.

How do credit cards with IHG Rewards work?

A credit card is a flexible way to pay for goods and services in-store, online or over the phone. When you apply for a credit card with IHG Rewards, you’re essentially applying for a short-term loan from the bank or credit card company. Applying for a credit card is usually a very quick and simple process which can be done online or at a branch. Once you’re approved, the bank will assign you a credit limit based on how much money you earn and how much you can afford to pay back.

When you pay for something using a credit card with IHG Rewards, you’re using the bank’s money and not your own. Because a credit card with IHG Rewards is essentially a short-term loan, the bank will charge you interest on the money you borrow. At the end of each credit card billing cycle, the bank will tally up all the money you spent on your credit card with IHG Rewards and send you a bill, outlining the minimum monthly repayment you need to make and how much interest you’ll be charged on the money you spent.

Every credit card offers the cardholder slightly different features and benefits, such as interest-free days or a concierge service. Credit cards with IHG rewards earn points on eligible purchases which can be used within the IHG Rewards Club loyalty program. An eligible purchase is generally any good or service you pay for using your card – cash advances and card fees aren’t considered eligible purchases.

Credit cards with IHG Rewards are linked to the IHG Rewards Club loyalty program which has a worldwide network of over 5,000 hotels and resorts. To get the most out of a credit card with IHG Rewards, you’ll need to join the IHG Rewards Club loyalty program which can be done online through the IHG website. Once you get a membership number, you can link the credit card to the IHG Rewards Club loyalty program and start accruing points.

When it comes to redeeming IHG Rewards points, this can usually be done online through the IHG Rewards website. In addition to hotel stays, IHG Rewards points can be cashed in for products, merchandise and gift cards. Depending on your loyalty program status, you may also be able to transfer IHG Rewards Points over to an eligible frequent flyer program.

How can I use a credit card to earn IHG Rewards points?

While each credit card works differently, IHG Rewards credit cards earn rewards points in two ways. The first way is by using a credit card with IHG Rewards to pay for your stay at an IHG hotel. Depending on the card, you may earn additional bonus points this way. The other way to earn IHG Rewards points is by using the credit card to pay for everyday spending like petrol, groceries and entertainment.

Sometimes, credit card companies offer bonus points to incentivise new applications and, depending on the offer, the bonus points can be substantial. This can be a handy bonus if you know you’ve got a trip planned and you intend to use a credit card with IHG Rewards. It’s worth mentioning that some signup bonuses have minimum spend conditions, so check the fine print before you factor in the points.

 Generally speaking, reward points programs are linked to loyalty, so the more you spend, the more you earn. This can work out well if you regularly stay in IHG Group hotels, but if you’re not a frequent traveller, there may be better rewards cards on the market. Before you apply for a credit card with IHG Rewards, compare these cards against other credit cards to make sure you’re getting the right card for you.

What are the advantages of credit cards with IHG Rewards?

Credit cards with IHG Rewards can be good value if you regularly stay at IHG Group hotels. The main advantage for frequent travellers is that by earning IHG Rewards points, you may be able to turn your everyday spending into rewards. 

Depending on the individual features of the credit card, other advantages may include bonus points when you use your card to stay at an IHG Group hotel, additional discounts and upgrades at participating IHG Group hotels and free bonus nights.

What to look out for when comparing credit cards with IHG Rewards?

Regardless of the type of incentive or reward a credit card offers, it’s still a credit card. When comparing different types of credit cards with IHG Rewards, it’s important to look beyond the rewards to the bigger picture.

As convenient as credit cards can be, they can end up costing you money if you don’t know how to manage them properly. Whether you’re a frequent flyer or a small shopper, here’s what to look out for when comparing credit cards with IHG Rewards.

The major aspect you want to compare is the interest rate. Rewards cards traditionally have higher interest rates than standard no-frills credit cards. If you don’t manage to pay your credit card balance in full every month, added interest could cost you more than the rewards save you. So do your research to avoid any unnecessary charges.

If you tend to travel frequently, check whether the credit cards with IHG Rewards have any travel incentives like complimentary travel insurance or fee-free overseas currency conversions. Other features to compare are whether the card offers interest-free days, extended warranty on goods purchased using a credit card with IHG Rewards and price protection in case you find an already purchased item cheaper.

Make sure you compare any annual or monthly card fees. Sometimes credit card companies will waive the first annual fee as an incentive for applying, so check to see what the ongoing fees are. Other costs to compare are cash advance fees, overseas currency conversion fees and missed payment fees.

How to apply for a credit card with IHG Rewards

Once you’ve compared credit cards with IHG Rewards and you’ve found a card that suits you, applying is usually quick and easy.

To start, you’ll need an IHG Rewards membership number. If you’re not already a member, signing up is easy through the IHG Rewards website. You’ll also need to be over 18 and have proof of identity and income. You may also need to provide proof of address and employment.