Finances from A to Z

Airline Credit Card

Airline Credit Card

Spring is fast approaching and many people are starting to think of that spring break escape or that summer vacation. Now is the time to organize and save for that retreat. This may be a good opportunity to start looking at the airline credit cards available.

With proper planning, a new airline credit card can save a lot of money for that special trip. Among the generous incentives by some financial institutions are free airline miles. Think of the souvenirs you could buy with the savings.

Not everyone can afford to take a vacation every year. Then others don't include an airline trip for that yearly retreat. So when a dream trip comes to mind, it's important to many, to try to do it as economically as possible.

Some people may not want to be tied down to one airline so they wouldn't necessarily be interested in an airline credit card. Perhaps a credit card that offers air miles in their rewards program would be more to their liking. This type of card can also save on any travel or purchase.

There are also available credit cards by companies such as Hilton, who give rewards of either air miles or hotel points. Although Hilton doesn't offer the 0% APR introductory period as some of the other credit cards, their first six month interest rate is a low 2.99%. This low interest rate and the convenience of the Hilton offer including participation by over 2500 hotels and 55 different airlines, may outweigh the 0% APR introduction period of other card issues.

The advantage of the internet is that it's possible to look at a variety of programs by a number of companies, all from the comfort of your home. When you've compared and made a decision, whether it's an airline credit card or a rewards card advancing airline miles, you can even apply for your new credit card with a secure online application. Now you'll be able to take the time you saved by shopping online, to dream of what you're going to do when you get to that exotic destination.

Assessing the Full Cost of a Credit Card

Assessing the Full Cost of a Credit Card

Credit cards do not have to end up costing you the earth. So long as you can keep your spending under control, and are able to pay off your monthly bill in full each month, your credit card will probably cost you nothing. Every purchase you make with your credit card is given an interest free period of somewhere between fifty and sixty days. This is the time between when you make the purchase and when the purchases show up on your next monthly bill. So long as you pay for it on the first bill, there will be no interest or financing charge for the purchase.

However, if you do not manage to pay for the purchase on the first bill it shows up on, then you will start to incur interest and financing charges. On credit cards, interest is charged monthly, not annually.

Also, as well as interest and financing charges, credit cards can also end up costing you in other fees. Probably the most common charge people incur with credit cards is interest charges, when they become unable to repay the full balance in full each month and instead, allow the balance to carry over to the next month.

But late payment fees are another way that credit cards ending up costing people more than they had imagined. You should always read the credit card agreement carefully to find out how much the penalty charges and fees will be if you fail to make all of your repayments on time. Some credit cards will even alter the interest rate you are charged if you fail to make payments. For example, if you are on a credit card that charges ten per cent annual percentage rate, and fail to make a repayment, the terms of your agreement may provide for the interest rate to be increased to a higher rate, for example twenty five per cent.

Another way credit cards can end up charging you more than you expected is if you travel abroad. One of the main conveniences of a credit card is that you can use it abroad when you travel. However, many credit card companies charge high loading fees for purchases you make while abroad. Not only will they charge you their currency exchange fees, but they will also charge you a percentage of the transaction as another fee.