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Can You Reserve A Hotel with A Credit Card?
July 1, 2025
Quick Answer
Yes, using a credit card is the standard and often required method for securing a hotel reservation.
Should You Reserve A Hotel With A Credit Card?
Let's weigh the pros and cons of using a credit card for hotel reservations.
Benefits
- Rewards and Perks: Many cards offer points, miles, or cashback on travel spending, plus potential benefits like travel insurance or room upgrades.
- Fraud Protection: You are typically not liable for fraudulent charges if your card information is compromised by the hotel or a third party.
- Simplified Check-in: Having a card on file for incidentals is standard practice and can streamline your arrival process.
- Dispute Resolution: It is generally easier to dispute charges with your card issuer for billing errors or unsatisfactory service.
Costs
- Interest Charges: Carrying a balance on your card past the due date will result in interest payments on the cost of your stay.
- Authorization Holds: Hotels often place a temporary hold on funds for the room and incidentals, which reduces your available credit.
- Foreign Transaction Fees: Using your card for international bookings may incur extra fees, depending on your card issuer.
- Potential for Overspending: The convenience of credit can sometimes lead to booking more expensive options than you would with cash.
How to Reserve A Hotel With A Credit Card
Reserving a hotel room with a credit card is a straightforward process. Following these general steps can help ensure a smooth booking experience and potentially unlock valuable rewards for your stay.
- Find Your Hotel and Dates: Begin by searching for your desired hotel and selecting your check-in and check-out dates. You can do this through online travel agencies or directly on the hotel’s website.
- Choose the Right Card: Before entering payment details, consider which credit card offers the best rewards, such as travel points or hotel-specific perks. To find a card that matches your spending habits, consider using the Kudos explore cards tool.
- Enter Your Information: Proceed to the booking page and carefully fill in your personal details and credit card information, including the card number, expiration date, and security code (CVV).
- Review and Confirm Your Booking: Before finalizing, thoroughly review all reservation details. Check the room type, dates, total cost including taxes and fees, and the hotel’s cancellation policy to avoid any surprises.
- Save Your Confirmation: After submitting your payment, you should receive a confirmation number or email. Keep this information handy for your records and for a smooth check-in process upon arrival.
Impact On Your Credit Score
Using a credit card to reserve a hotel room can affect your credit score in several ways. Here are a few key factors to keep in mind before you book.
- Credit Utilization. The hotel may place a temporary hold on your card, which increases your credit utilization ratio. A higher ratio can temporarily lower your score until the hold is removed after your stay.
- Hard Inquiries. Some hotels might perform a hard credit check, particularly for long-term stays or premium rooms. This inquiry can cause a small, temporary dip in your credit score.
- Payment History. Paying your final bill on time positively affects your payment history, a crucial factor for your score. Consistent, on-time payments help build and maintain good credit over the long term.
Alternative Ways To Reserve A Hotel
Booking Without a Credit Card
While credit cards are standard, several alternatives exist for securing a reservation. Many hotels and online travel agencies accept debit cards for payment or to guarantee a room. Some properties also allow you to reserve your stay online and pay with cash upon arrival, though this is often only available when booking directly. Furthermore, third-party payment services like PayPal are increasingly integrated into booking platforms, offering another secure way to finalize your plans without plastic.
Adjusting Reservation Settings
Beyond payment methods, adjusting your search filters can reveal different reservation types. Selecting "pay at the hotel" or "free cancellation" rates often removes the need for an immediate charge, although a card might still be required to hold the room. Utilizing hotel loyalty programs can also unlock special booking conditions. Elite status members may find options for guaranteed reservations without a deposit, providing greater flexibility for their travel arrangements.
Choose the Right Card to Reserve A Hotel
Before you book your stay, make sure you're using the card that gives you the most back. Whether you're looking for travel points, cash back, or a card with no annual fees, the right choice can save you a significant amount. Kudos’s Explore Tool can help you find your credit card match from a database of nearly 3,000 cards, ensuring you get personalized recommendations that fit your spending habits perfectly.
If you want to get more from your credit cards, Kudos is the premier free shopping assistant for when you shop online. We're also giving you $20 back after your first qualifying purchase—just sign-up for free with code “GET20” and complete a purchase at a Boost merchant.
Frequently Asked Questions
What if I don’t have a credit card to reserve a hotel room?
Many hotels accept debit cards, but they may place a larger temporary hold on your funds for incidentals.
Will the hotel charge my card immediately when I book?
It depends on the rate type; prepaid reservations are charged upfront, while flexible rates usually aren't charged until check-in.
Is it safe to use my credit card on a hotel’s website?
Yes, legitimate hotel booking sites use secure encryption to protect your personal and financial information during the transaction.
Supercharge Your Credit Cards
Experience smarter spending with Kudos and unlock more from your credit cards. Earn $20.00 when you sign up for Kudos with "GET20" and make an eligible Kudos Boost purchase.
Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
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