Credit Cards How To Use Credit Cards Wisely

How To Never Pay Credit Card Interest

All in all, knowing your credit card’s grace period is a good idea. Even if you don’t take advantage of it every billing cycle, you’ll know at what point you’d be charged interest on your purchases.

Pay Off Charges On Your Credit Card As You Make Them

If you’re not the type to wait over a month to pay off a charge on your credit card, this method may work better for you. In this method, you pay off charges on your credit card as you make them. This means that every time you make a purchase using your credit card, you transfer money from your bank account to cover the cost of the purchase.

It may sound like a lot of work if you tend to use your credit card often, but it ensures that you won’t pay any credit card interest. For some, that benefit makes this method worth it.

The key to paying off charges on your credit card as you make them is to develop a routine. It only takes a few minutes each day to log into your online account and make the transfer. You can make it a routine to do this every morning before work or every evening after dinner.

Just Pay Your Balance In Full Each Month

If knowing your credit card’s grace period and paying off charges on your credit card when you make them both sound like too much work, you can always just pay your balance in full each month. This is the classic, surefire way to never pay credit card interest.

On your credit card statement, you’ll see a number labeled “New Balance”. This amount is what you owe to the credit card company as of your billing cycle end date. It includes any fees charged. Pay off this amount in full each month and you’ll avoid paying credit card interest.

If you’re having trouble paying your balance in full each month, you may be charging more purchases to your credit card than you can afford. To prevent this, keep track of all the purchases you put on your credit card. As you make a purchase, ask yourself: “do I have the money in my checking account now to pay for this?” If the answer is no, do not put that purchase on your credit card.

Wrapping Up

If you could learn to use credit cards without ever paying interest, you’d be in good financial shape. Credit card interest rates are high enough to cost you a lot of money in the long run if you don’t pay off your balances on time.

Three smart ways to never pay credit card interest are to:

  • Know your credit card’s grace period
  • Pay off charges on your credit card as you make them
  • Just pay your balance in full each month

Mastering these techniques will save you a lot of money in the long run. You don’t even have to do all three in order to never pay credit card interest. Using just one of these methods will help tremendously!

Which of these methods to never pay credit card interest would you use?

About the author

Aliyyah Camp

Aliyyah Camp

Aliyyah Camp is a personal finance writer who specializes in writing about ways to save money, make money, build credit, and invest. She has a Bachelor's Degree in Communication from the University of Pennsylvania.


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