Ask anyone what interest rate is their credit card charging them and they will answer with the apr. While the apr is the rate used to determine your finance charges, it is not the true effective interest rate. In fact, it is always higher than the quoted apr. Here is an example to illustrate how to actually calculate the the effective interest rate. Let us assume you have $100. You deposit it in a bank for one year, who promise to pay you a 10% interest once a year at the end of the year. Hence, at the end of one year, the bank will pay you 10% X $100 = $10. You will get back a total of $110. You return for putting your $100 in the bank for one year is $10, which is equal to 10%. In this example, your efffective interest is 10% (same as the quoted interest).

So you have got some credit card debt which you want to reduce and eventually eliminate. You have a good FICO score which enables you to get a reasonably low apr credit card. Your strategy should be to get a 0 apr credit card, one that offers an introductory 0% apr on balance transfers. You then transfer you balance over to your new 0 apr credit card. You should not make any purchase on the new credit card, but rather, just pay the minimum interest required. In the meantime, use the savings you have made on the interest payments with the new credit card and start to gradually pay off your credit card debt with the higher interest on your existing credit card. Once you have paid off your credit card debt on all your higher interest credit card, only then do you start to pay off the debt on the 0 apr credit card.

Many people like to have an airline credit card to help them earn faster miles towards their next free flight. However, one of the problems with an airline credit card is the high annual fees. Most airline credit cards charge anywhere between $45 to $130 for the annual fee. The high annual fee is an issue because a roundtrip economy ticket within continental USA will cost anywhere from $99 (for short haul flights) to over $300 (if you fly coast to coast). Hence, the annual fee that you pay for a frequent flyer card can almost buy you a roundtrip ticket for a short haul flight. There are two important things to consider.

If you want to use a reward credit card for getting free airline tickets, you have a choice of choosing a dedicated airline credit card, a travel reward credit card or a cash back credit card. A dedicated airline credit credit card has hefty annual fees and may not be worth it if you are not a very frequent traveller. But assuming that you do take a couple of vacations here and there, is it better to choose a no annual fee travel credit card or a cash back credit card? This article examines the factors to consider if you decide not to get a dedicated airline credit card, but instead to choose between either a no annual fee reward or cash back credit card.

How to improve credit score? In our previous article on Understanding FICO Score, we touched on five main factors that affect your FICO score. These are : Payment History Amounts Owed Length of credit history New Credits Types of Credits Used There have been lots of articles written on how to improves your credit score. According to MyFico.com, which is run by Fair Isaac, the firm that invented FICO, there are just a few basic things to do. Most are pretty common sensical.

In the good old days, most credit cards would charge an annual fee. These days, most credit cards have no annual fee (unless you are talking about sub-prime credit cards). Merchant fees are pretty standard which is negotiated between merchants and the credit card company. Where credit card companies make the most money is in the finance charges imposed on consumers when they do not pay their balance in full.

What is a FICO score? A FICO score is a credit score developed by Fair Isaac & Co. It is used by creditors to determine your credit worthiness. Essentially, it is an attempt to condense your entire credit history into one number. Your FICO score is derived from mathematical models that assign scores to many factors. There are really three FICO scores that are computed by the three major credit bureaus - Experian, Trans Union and Equifax. When you make a loan application, a creditor will check with either one or all three credit bureaus to determine the rate that you will be charged on your loan.

If you have no credit history, getting a credit card to establish credit history is the easiest way to get started. Establish a good credit history and your future auto loans, mortgage and any other types of loans will be cheaper as you get lower rates. People who have no credit normally fall into three categories, namely students, immigrants, or expatriates and lastly, those who just have not established any credit history. Different credit cards to establish credit are availble to these groups to . Let us explore them.

Credit cards are almost a necessity in the 21st century. They are great for emergencies, help you establish credit and are great convenience in today's fast paced lifestyle. They can also be the source of great financial hardship if not used wisely and properly. That available line of credit can be very tempting, especially when you only have to pay a fraction of the balance monthly. Compound this with a high interest rate and the potential for financial distress becomes very real. Here are some ways to keep your credit card balances under control:

Answer - Actually, the Hilton HHonors® Platinum Credit Card from American Express is better card because you can earn more points. I have compiled the key features of these two cards in a table below. Let us take a closer look.