Why It's A Mistake To Not Book Your Hotel Room With A Credit Card

There are numerous common mistakes you'll want to avoid when booking a hotel, but one of the biggest errors people make is not using a credit card. When you book with a credit card, you not only enjoy added protection of your money, but it also aligns much better with many hotels' booking and check-in policies. While it's possible to pay for a hotel room with a debit card or cash, many still want you to provide credit card details either when booking or when checking in. This is so they have a card on file to charge if you're a no-show or if you incur any additional fees while staying there.

If you use a debit card when you check in, the hotel may take out money to cover incidentals. This money won't be available to you until it's released by the property and cleared by your bank after your stay. With a credit card, you rarely notice this amount on hold. As more people vacation on tighter budgets, this money becomes even more precious. Relinquishing part of it while staying at your hotel could keep you from enjoying a nice dinner, paying for memorable experiences, or purchasing souvenirs on vacation. And if you do book with a credit card, be sure to bring it with you to avoid being refused accommodation, as some hotels require you to show the physical card when checking in. 

Some big hotel chains in America require a credit card when booking online, such as Hyatt and Wyndham. This makes booking a lot more convenient than trying to pay over the phone. Other hotels, such as Marriott, require a physical credit card when checking in. So it's best to have one to ensure you can always book and check into your hotel.

Protecting your hard-earned money is important. Hotels don't always have the most guest-friendly cancellation policies, so a credit card company can sometimes offer you better compensation if your hotel reservation gets canceled. You'll usually be better served by your credit card than a debit card since most companies have built-in travel insurance or purchase protection services. The same goes if a hotel tries to charge you more than you've agreed to pay for your stay. 

If this happens, you can usually apply for a refund through your credit card company instead of relying on the hotel or third-party booking site. So if a hotel overcharges you $400 by mistake, you're more likely to get this money back if you use your credit card than a typical debit card. The added benefit here is you're also not going without this money while you're waiting for the refund, since it's only on hold instead of being taken from your bank (as it would with a debit card). 

Credit cards also often provide additional protections while traveling. Depending on what type you have, you might benefit from insurance coverage for lost or delayed baggage, trip cancellation or delays, emergency medical and dental, or emergency evacuation. On top of these protections, booking with a credit card helps you improve your credit rating. You may even be able to save money on certain hotels when booking or get other rewards to help you see or do more while vacationing, like bonus air miles that might allow you to squeeze in an extra trip each year. Then again, it's worth asking yourself whether those air miles are actually worth the hassle.