Creditnet News Story
Travel rewards cards can bring savings
Monday, June 21, 2010
By Sam Lee
Airline reward credit cards are stepping it up and offering more perks, such as free checked baggage, but those perks may be accompanied by hidden fees.
Delta Airlines recently joined forces with American Express to create Skymiles, a card that rewards holders with free baggage check for the first piece of luggage, reports the Detroit News. In order for consumers to reap benefits from the card, they must pay a $95 annual fee.
The cards are a huge boon because they help build loyalty among card holders, says the Detroit News. The fees charged up front allow the issuer to create more enticing rewards.
The Detroit News says that some perks can result in major savings despite having to pay annual fees, so it's important for consumers to think about how often they'll use the card. Sometimes the savings will be greater than the cost of having the card.
There are a variety of other credit card perks available. Discover offers holders a cash-back bonus of up to 5 percent on certain purchases and Visa has a program where points can be earned and redeemed.
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