IHG Traveler Card Review: Plentiful Points and No Annual Fee

The IHG® Rewards Traveler Credit Card presents you with the same value trade-off as some other hotel chains' $0-annual-fee credit cards: It won't cost you anything to carry it, but you won't get an automatic free night's stay every year.

Even so, the IHG® Rewards Traveler Credit Card gives you a nice pile of points for each dollar you spend at IHG's hotel brands — including Holiday Inn, InterContinental, Crowne Plaza, Kimpton, EVEN and Indigo — as well as a bump toward elite status and a good-size sign-up bonus. No, it's not as generous as its $99-a-year cousin, the IHG® Rewards Premier Credit Card. But did we mention there's no annual fee?

If your travel style takes you (or could take you) to IHG on the regular, but not so often that you'd be willing to pay an annual fee, it's an option worth a look. But if you prefer far-flung destinations or small-town USA, or you just want to use credit card rewards for something besides hotel stays, a card with wider-ranging redemption options could be a better companion.

IHG® Rewards Traveler Credit Card: Basics

Card type: Hotel.

Annual fee: $0.

Sign-up bonus: Earn 120,000 bonus points after spending $2,000 on purchases within the first three months of account opening.

Rewards:

• Up to 17 total points per dollar spent when you stay at an IHG hotel. Those 15 points come from two sources:

  • 5 points per dollar from using the IHG® Rewards Traveler Credit Card.

  • Up to 10 points per dollar from your IHG Rewards Club membership. If you're not already a member of the program, you'll be automatically enrolled when you're approved for the card. Exceptions: When you stay at Staybridge Suites or Candlewood Suites, you'll earn only 5 points per dollar from the loyalty program.

  • Up to 2 points per dollar from automatic IHG Silver Elite status.

• 3 points per dollar spent on monthly bills, gas stations and restaurants.

• 2 points per dollar on all other purchases.

• Points will expire if you go 12 months without activity in your IHG rewards account. (Using the card counts as activity.)

Perks:

• Get the fourth reward night free when you redeem points for a stay of four nights or more. Terms apply.

• Automatic Elite Silver status as long as you hold the card.

• Earn Gold Elite status when you spend at least $10,000 on your card in a calendar year. Once earned, this status is good through the end of the current year and the next full calendar year. Gold Elite status comes with a 10% bonus on base points earned through your IHG Rewards Club membership (not points earned with the card), and extended checkout and priority check-in when available.

Interest rate: The ongoing APR is 20.49%-27.49% Variable APR.

Foreign transaction fees: None.

» MORE: Chase credit cards mobile app review

Traveler vs. Premier

If you're committed to IHG, consider the extra value you'd get from the IHG® Rewards Premier Credit Card. The free night every year can more than make up for the annual fee all by itself, you'll rack up more points per dollar on hotel stays, and you'll enjoy the additional perks of Platinum Elite status automatically. Here's a side-by-side comparison of the two cards:

Highlights of the IHG® Rewards Traveler Credit Card

Solid sign-up bonus

The IHG® Rewards Traveler Credit Card comes with a pretty generous welcome offer for a $0-a-year card: Earn 120,000 bonus points after spending $2,000 on purchases within the first three months of account opening. Rewards nights could be as low as 10,000 points, so you could turn your bonus into a multiday stay or combine it with cash for a night at one of the fancier hotels in the portfolio.

Great rewards rate

Use your IHG® Rewards Traveler Credit Card to book an eligible IHG hotel room and you'll earn 5 points per $1 spent. On top of that, you get 10 points per dollar spent for being an IHG Rewards Club member. (If you aren't already a member, you'll automatically be signed up when you're approved for the card). It's worth noting that stays at Staybridge Suites and Candlewood Suites will net you only 5 extra points per dollar, rather than 10.

A boost toward elite status

Putting $10,000 a year on the card earns you Gold Elite status through the end of the next calendar year. Ordinarily, to reach this status, you have to stay 10 nights at IHG or earn 10,000 points from hotel stays in a year. Gold Elite comes with an array of benefits, described above.

Free night potential

Redeem points for a stay of four or more nights at the same property, and you'll get the fourth night free.

» MORE: How to choose a travel credit card

Drawbacks to consider

Lower point value

A low individual point value isn't necessarily bad if you earn enough points per dollar to make up for their lesser value. But it's still something to keep in mind when comparing hotel loyalty programs. This card can earn you a pile of points, but they may not go as far as the points from other hotel rewards programs or travel rewards cards.

Limited use of your rewards

If you're considering a particular hotel card, take into account how much you'll benefit from the loyalty program. If you don't see yourself spending most of your travel nights at an IHG property, then this isn't the card for you. Although it's possible to transfer points to one of IHG's airline partners, you won't get great value going this route, nor with options such as merchandise, gift cards or donations.

Possible alternatives

Chase Sapphire Preferred® Card

If you'd appreciate greater flexibility, consider a general-purpose travel rewards card whose points aren't locked into a particular loyalty program. The Chase Sapphire Preferred® Card, for example, earns the following:

• 5 points per $1 spent on all travel purchased through Chase Ultimate Rewards®.

• 3 points per $1 spent on dining (including eligible delivery services and takeout).

• 3 points per $1 spent on select streaming services.

• 3 points per $1 spent on online grocery purchases (not including Target, Walmart and wholesale clubs).

• 2 points per $1 spent on travel not purchased through Chase Ultimate Rewards®.

• 1 point per $1 spent on other purchases.

It also comes with a generous sign-up bonus: Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®. With the Chase Sapphire Preferred® Card, you can redeem Chase Ultimate Rewards® for travel through Chase at a 25% increase in value, making points worth 1.25 cents each — far more valuable than an average IHG point. The annual fee is $95.

» MORE: Full review of the Chase Sapphire Preferred® Card

Marriott Bonvoy Bold® Credit Card

The IHG portfolio includes more than 5,600 hotels and resorts, but if you want even greater variety for both earning and redeeming hotel rewards, consider the Marriott network of over 7,000 properties. Marriott offers multiple cards, but if you're looking to avoid an annual fee, check out the Marriott Bonvoy Bold® Credit Card. It pays 3 points per dollar spent at participating Marriott Bonvoy properties, 2 points per dollar on other travel purchases (including airfare, taxis and trains) and 1 point per dollar on all other purchases. It, too, comes with a sign-up bonus: Earn 60,000 Bonus Points after you spend $2,000 on purchases in the first 3 months from account opening. NerdWallet estimates the value of Bonvoy points at 0.7 cent apiece.

» MORE: Full review of the Marriott Bonvoy Bold® Credit Card

Capital One Venture Rewards Credit Card

If tracking points and values sounds like more work than it's worth, a no-fuss option like the Capital One Venture Rewards Credit Card could be your best bet. You'll earn 2 miles per dollar spent, and you can use your miles to pay for any travel expense — any flight, any hotel, etc. It does have an annual fee, but it comes with an impressive sign-up incentive that can be enough to cover the cost of ownership for years. Plus, you'll also get up to a $100 application fee credit for Global Entry or TSA Precheck every four years, something you won't find on the IHG® Rewards Traveler Credit Card.

» MORE: Full review of the Capital One Venture Rewards Credit Card

Should I get the IHG® Rewards Traveler Credit Card?

If you get your shut-eye at hotels multiple times a year and an IHG property is your preferred place to do it, this card is a great way to rack up the rewards without any carrying costs. But if you can stomach the annual fee of $99, the IHG® Rewards Premier Credit Card offers a high enough rewards rate and value-added extras to offset the cost of ownership.

However, if your travel is literally all over the map, pick a more flexible rewards card that lets you choose how to use those earnings.