The best credit cards for vacations

One way to take a cheap vacation is to redeem perks you earned when you were still using your credit card. Those were the days!

So many people are doing this that redemptions for the Hilton HHonors Card from American Express jumped 25 percent in 2008 compared to 2007. If you don’t already have a credit card that earns great hotel and travel perks, consider these top-rated ones from CreditCards.com, which earns a fee from credit card companies when you fill out an application.

If you already have a lot of credit cards, don’t get another one. Each time to apply for a new line of credit it diminishes your score slightly. Not to mention the temptation of spending more.

The Capital One No Hassle Miles card gets you 1.25 miles for every dollar you spend and the miles never expire. There is no limit to the number of miles you can earn and there is no annual fee. A similar card from Capital One earns you 2 miles for every dollar but has a $39 yearly fee. Call them directly and ask them to waive it.

The Starwood Preferred Guest Card gives users up to 6 free nights at a hotel when you earn 25,000 points. Earn double points at participating Starwood resorts and properties. The card has no annual fee the first year but is $45 each following year. Make a note in your calender four weeks before it expires to call ask them to waive the fee.

Another site I like for rating credit cards is Bankaholic. For spenders looking to rack up hotel perks, they also recommend the Starwood card and also the Blue  Sky card from American Express.