Review of the IHG One Rewards Traveler Credit Card: Enjoy IHG Benefits Without an Annual Fee

Overview of the IHG One Rewards Traveler Credit Card

The IHG One Rewards Traveler Credit Card is IHG's no-annual-fee credit option. With this card, you earn 5 points for every dollar spent at IHG hotels and resorts, and 3 points per dollar on gas, monthly bills, and dining. While the IHG Traveler Card includes valuable IHG perks, it may not be the ideal choice for everyone. Card Rating*: ⭐⭐1/2

*Card Rating reflects the views of TPG's editors and is not swayed by the card issuer.

IHG presents two personal cobranded cards from Chase to help users accumulate points and enhance their stays. One of these options is the no-annual-fee IHG One Rewards Traveler Credit Card. While the IHG One Traveler Card offers significant benefits for loyal IHG customers compared to most no-annual-fee hotel cards, it may not be the best fit for everyone.

The IHG One Rewards Traveler Credit Card is designed for travelers looking to earn IHG points on their spending without facing an annual fee. This card is particularly beneficial for those who don't stay with IHG often but can take advantage of the fourth reward night benefit.

If you frequently stay at IHG properties, the IHG One Rewards Premier Credit Card may be a more suitable choice.

A recommended credit score for this card is above 670. Now, let’s delve deeper into the IHG One Traveler Card to determine if it’s the right fit for you.

Pros and cons of the IHG One Rewards Traveler

Welcome Offer for the IHG One Rewards Traveler Card

Currently, new applicants for the IHG Traveler Card can earn 100,000 bonus points by spending $2,000 within three months of opening their account. Based on TPG's July 2024 valuations, IHG One Rewards points are valued at 0.5 cents each, making this bonus equivalent to $500.

You may qualify for the IHG One Traveler Card (along with its sign-up bonus) if you meet all of the following criteria:

• Do not currently hold a personal (non-business) IHG One Rewards card
• Have not received a sign-up bonus on a personal IHG card in the last 24 months
• Are compliant with Chase's 5/24 rule

Benefits of the IHG One Rewards Traveler

Like many top no-annual-fee cards, the IHG One Traveler Card lacks several luxury benefits. Here’s a brief summary of the card’s key advantages and features.

Fourth Reward Night Benefit

When you redeem points for stays of four nights or more, you will receive the fourth night at no additional points. This discount is automatically applied to eligible stays once you become a cardholder.

Receive a 20% Discount on Point Purchases

You'll enjoy a 20% bonus every time you purchase IHG points with your card. However, this discount cannot be combined with other promotions, such as sales on IHG points. IHG occasionally offers a more enticing 100% bonus on point purchases. While I often buy IHG points during the 100% bonus promotion, reducing the cost to 0.5 cents per point, the 20% discount doesn't appeal to me.

Automatic Silver Status (Path to Gold)

Holders of the IHG One Traveler Card will automatically receive Silver Elite status in the IHG One Rewards program. This level offers a 20% bonus on hotel stays, priority check-in, and points that never expire.

Additionally, you can achieve Gold Elite status by spending $20,000 on your card each calendar year. This level provides a 40% bonus on hotel stays and allows you to roll over elite nights for the next year’s status.

No Foreign Transaction Fees

While many credit cards impose foreign transaction fees, very few without an annual fee exist. If you travel internationally often, it’s beneficial to have at least one credit card that waives these fees.

Earning Points with the IHG One Rewards Traveler

Using your IHG One Traveler Card for purchases allows you to earn:

• 5 points per dollar spent at IHG hotels and resorts (2.5% return, based on TPG's July 2024 valuations)
• 3 points per dollar at gas stations, on monthly bills, and at restaurants (1.5% return)
• 2 points per dollar on all other purchases (1% return)

These rewards aren't impressive, even when compared to other no-annual-fee cards.

The 2.5% return at IHG hotels and resorts is decent. However, many purchases can yield significantly better returns with various sub-$100 annual fee cards. For instance, the $95 annual fee Chase Sapphire Preferred® Card earns 2 points per dollar on travel purchases, resulting in over a 4% return. Additionally, the $95 annual fee Capital One Venture Rewards Credit Card (see rates and fees) offers 2 miles per dollar, translating to a 3.7% return on nearly all purchases.

The IHG One Traveler Card also falls short for most other purchases, providing only a 1.5% return at gas stations and restaurants, along with a 1% return on other transactions. Several straightforward cash-back credit cards offer a 2% return on all purchases. For example, the no-annual-fee Citi Double Cash® Card allows you to earn 2% per dollar on all purchases — 1% when you buy and 1% when you pay — (see rates and fees).

Redeeming Points with the IHG One Rewards Traveler

There are numerous ways to redeem IHG One Rewards points. Unsurprisingly, the best value for your points comes from redeeming them for stays at IHG hotels.

According to TPG's July 2024 valuations, IHG points are valued at approximately 0.5 cents each. However, you can maximize your redemptions within the IHG One Rewards program to obtain much greater value from your points. Here are several strategies to achieve that.

While IHG utilizes dynamic award pricing, you can find some appealing deals. One drawback of this system is the need to thoughtfully evaluate whether to use points or cash for a stay. I usually opt for points when I can exceed 0.5 cents per point in value and tend to redeem points for stays of four nights or more to take advantage of the fourth reward night benefit. Conversely, I prefer to pay cash during attractive hotel promotions from IHG.

In certain areas, IHG One Rewards points can be particularly valuable. Here are some of my top IHG properties in the U.S. available for 10,000 points. Additionally, if you're considering international travel, check out these top international IHG properties bookable for 10,000 points.

You can also make reservations using a mix of Points and cash. For each room, a chart will usually display discounts from the full nightly award rate in increments of 5,000 points.

When you opt for a Points + Cash booking, you're effectively purchasing the additional points required to complete your redemption. Therefore, if you cancel your reservation, your refund will be issued solely in points. I seldom choose Points + Cash rates as it's typically more beneficial to use only points. However, it's a good idea to check if this option makes sense for each booking.

TPG managing editor Matt Moffitt prefers to redeem his IHG One Rewards points for four-night award stays. With the IHG One Rewards Premier Business Credit Card, he enjoys a free fourth night on award redemptions. He generally aims for Holiday Inn and Holiday Inn Express properties to maximize his points but occasionally indulges in stays at Kimpton or InterContinental properties.

Transferring points on the IHG One Rewards Traveler

IHG One boasts over 40 airline transfer partners, but it's advisable to steer clear of this redemption option whenever possible. Points transfer at a nearly 5:1 ratio, which is relatively low. Additionally, the transfer process can be quite tedious, as it cannot be completed online; you must call the IHG One Rewards service center. IHG is generally slow in processing point transfers, with some users reporting waits of up to six weeks.

You can also transfer your points to other IHG One members, starting at $5 for every 1,000 points. For Diamond members and IHG Business Rewards Program participants, this transfer is free for up to 500,000 points each calendar year.

What cards rival the IHG One Rewards Traveler?

If you're okay with an annual fee, take a look at these alternatives to the IHG One Traveler card.

• If you seek more IHG benefits: The IHG One Rewards Premier Credit Card comes with a $99 annual fee, granting automatic Platinum Elite status, an anniversary free night (valued up to 40,000 points), $50 in United TravelBank credit each year, and a reimbursement for your Global Entry, TSA PreCheck, or Nexus application fee every four years. This card also offers better earning rates than the IHG One Rewards Traveler. For more details, see our full review of the IHG One Rewards Premier Credit Card.
• If you prefer flexible earnings: The Chase Sapphire Preferred Card has a $95 annual fee and earns Chase Ultimate Rewards points, which can be transferred to IHG at a 1:1 ratio for redemptions, and also used with various airline and hotel programs. Key benefits include a 10% anniversary points bonus and up to $50 in hotel credits each year. For further information, read our full review of the Chase Sapphire Preferred Card.
• If you're a business owner seeking IHG benefits: The IHG One Rewards Premier Business Credit Card offers perks such as the fourth night free and a complimentary anniversary night, plus it won't count against your 5/24 limit with Chase. For more insights, see our full review of the IHG One Rewards Premier Business Card.

For more choices, check out our comprehensive list of the best hotel credit cards.

Is the IHG One Rewards Traveler a good choice?

If you visit IHG properties a few times a year and desire enhanced travel perks, this card could be a valuable addition to your collection. With no annual fee, it’s an obvious pick if you're under 5/24 and looking for entry-level IHG One status along with the fourth night free when booking with points.

Conclusion

The IHG One Rewards Traveler Credit Card is a decent choice. It offers a 2.5% return on stays at IHG hotels and resorts, along with some IHG-related benefits, all without an annual fee. This card is a great option for occasional travelers who want to take advantage of the fourth-night-free benefit. However, if you seek additional perks during your IHG stays, you may find this card lacking in benefits.