The best way to avoid paying interest on your credit card is to pay off the balance in full every month.
You can also avoid other fees, such as late charges, by paying your credit card bill on time.
How much should I pay on my credit card to avoid interest?
Generally, you can avoid credit card interest by paying your balance in full every month before the end of the grace period. Grace periods are typically between 21 and 27 days.
How can you use your credit card wisely and avoid paying interest?
Here are six ways you can use your credit card wisely and lower the interest burden.
- Pay the credit card outstanding amount on the due date.
- No interest-free period on new purchases.
- Go for balance transfer.
- Convert to EMI.
- Deposit cash withdrawals back at the earliest.
- Avoid using credit cards abroad.
Do I have to pay interest on credit card?
Credit cards charge interest when you don’t pay off your full balance by the due date each month. But you can avoid credit card interest by paying your bill in full every month. Interest doesn’t apply to your daily balance when you do so.
How is interest charged on a credit card?
Your credit card issuer will charge interest whenever you carry a balance beyond the grace period. Credit card interest isn’t a one-time thing either. Each month you don’t pay your balance in full, you’ll have a finance charge added to your balance.
Photo in the article by “Gary Stein”