Hands down, Starwood and American Express have came up with what is arguably the best travel/hotel credit card out there, and it is available to both individuals and businesses. The math starts with a simple formula — for each dollar you spend with this card, you earn one point (called Starpoint) in the Starwood Preferred Guest (SPG) program. Or if you use this card to book a Starwood property, you can earn up to 5 points. Once points are earned, you have a variety of options to redeem them for free hotel nights, frequent flier miles, or other valuable awards.
For those who don’t know, Starwood is the parent company of several different hotel chains, including Sheraton, Westin, W Hotels, Element Hotels, and Le Meridian.
- Sign-up bonus includes 25,000 Startpoints after you spend $3,000 within the first 3 months of card membership ($5,000 with the Business version of the card)
- Ability to transfer Startpoints into airline miles
Generally speaking, Starpoints are worth more than other hotel points and/or frequent flier miles - Variable APR of 15.49% – 19.49%
- No foreign transaction fee
- No annual fee in the first year, after that it’s $95
How It Works
Sign-up bonus: 25,000 Starpoints after you spend $3,000 or $5,000 (for Business customers) within the first 3 months of card membership.
Best hotel points, period: Free stay awards at Starwood hotels begin at a mere 2,000 – 3,000 points for a weekend stay. Also, Starwood has many luxury properties where you can redeem 10,000 points or less for an award night. In contrast, a single award night with the Marriott rewards program starts at 7,500 points and quickly increases from there. There are no blackout dates or capacity restrictions on Starwood’s hotel awards. And when you redeem a four night stay with your Starpoints, the fifth night is free.
Build points: For each dollar of eligible purchases at participating SPG hotels you earn two points from American Express and two from SPG. If you are a Gold or Platinum Starwood Preferred Guest, you earn three points from SPG rather than two, for a total of five points! All other purchases earn one point for each dollar spent.
Transfer to airline miles: You can redeem Startpoints for miles in the frequent flier programs of over 30 different airlines such as Delta Airlines, Southwest Airlines, and Japan Airlines, plus Amtrak Guest Rewards points at a 1:1 ratio (in most cases). Plus, when you redeem 20,000 Starpoints at once, you get a 5,000 point bonus. In other words, with this card you can earn more miles per dollar spent than you would by using that airline’s own co-branded card.
Travel benefits: No foreign transaction fees, Roadside Assistance Hotline, Car Rental Loss and Damage Insurance, and Global Assist® Hotline all make your travelling that much more comfortable. Moreover, the Business version of the card also includes Baggage Insurance Plan for eligible lost, damaged, or stolen baggage.
AMEX Shopping benefits: These would include Extended Warranty (one extra year added to the original manufacturer’s warranty), Purchase Protection (up to 90 days against theft and damage, limited to $1,000 per occurrence) and Return Protection (for returning an eligible item within 90 days from the date of purchase). In addition, the Business version of the card offers Amex OPEN Savings® for eligible business purchases, and ReceiptMatch that will help you manage Card expenses by allowing you to add receipts, tags and notes to your transactions.
Free Internet access: Complimentary in-room Internet access while staying at SPG Participating Hotels, plus unlimited Wi-Fi on up to four devices at more than 1,000,000 hotspots worldwide with the Boingo American Express Preferred Plan.
Access to the Sheraton Club lounge: Owners of Starwood Preferred Guest® Business Credit Card get a complimentary access to Sheraton Club lounges for the duration of their stay. These lounges include such perks as personalized service, complimentary breakfast, all-day snacks and beverages, and free Wi-Fi.
Starwood Elite Status: As a Card Member, you receive credit for 5 nights and 2 stays each year toward SPG® Elite status. That’s just 20 nights away for SPG Gold status and 45 nights away for SPG Platinum status in a calendar year. Also, Business cardmembers can earn the SPG Gold status after spending $30,000 or more in eligible purchases on the Card in a calendar year.
Annual fee: The first year is free, after which you will be paying $95 per annum. Well worth the money, we think!
APR: Variable, ranging from 15.49% to 19.49%, based on your creditworthiness. You’re best off paying your balance in full and on time.
Costs
- 15.49%-19.49% Variable APR for purchases and balance transfers
- 3% Balance Transfer Fee (minimum $5); Business version of the card doesn’t have a balance transfer option
- $0 Foreign Transaction Fee
- No annual fee in the first year, after that it’s $95 (per year)
At American Express’ secure website
Pros
- A Starpoint is worth more than any airline mile or credit card reward point, let alone points from competing hotel chains. Put into money, each Starpoint is worth 3 to 5 cents whereas points from most other networks are worth around 1.5 cents.
- With the ability to exchange Starpoints for frequent flier miles, this card is also well suited for people who don’t stay that much at Starwood properties.
- Free in-room and WiFi internet access with Boingo.
- Access to the Sheraton Club lounge with Starwood Preferred Guest® Business Credit Card.
Cons
- With APR ranging from 15.49% to 19.49% you are best off paying your balance in full and on time.
- Although you can convert Starpoints into airline miles, for United Airlines miles – you should use some other card; for every two Starpoints redeemed, you get a single MileagePlus mile.
Is This The Card For You?
Yes, yes, yes… It is up to you to choose between the Starwood Preferred Guest® Credit Card and Starwood Preferred Guest® Business Credit Card. If you’re a small business owner, go for the latter. Otherwise, the former is your choice. The sign-up bonus alone is worth it. Also, Starpoints are known to be worth more than any other hotel points or airline miles, making SPG credit cards one of the most popular American Express cards on the market. With all the perks and bonuses, frequent and not-that-frequent travelers alike will benefit from one of these cards.