How to Avoid Credit Card Interest

You can easily (or completely eliminate) interest on your credit card by following the tips below.

Pay full

Eliminate interest when paying the full monthly statement. Delayed payments not only increase interest, but can also affect your credit score. When you repay your entire balance each month, you skip the interest that normally accompanies your purchase.

Spacing purchases

Nothing beats the excitement of a new card, but refrain from shopping. If it takes time between purchases, it’s much easier to pay for what you’re borrowing. If you’re making a big purchase, save it for a low interest rate credit card so you don’t get overwhelmed by the high-value items.

Sign up for a new card

If you have enough credit to get a new credit card, consider signing up for your card with a promotional APR. For example, a card issuer can offer a 0% APR referral that lasts for over a year and save money in the meantime. There are also plans such as Affirm to buy now and pay later (BNPL). This makes it a little easier to make large purchases, as you can make a purchase and then pay with a small payment.

Consider a balance transfer credit card

With a balance transfer credit card, you can receive all your debt and transfer it to one card with a single bill. You can also take this opportunity to choose a new interest-free credit card for a period of time and give yourself more time to repay your debt. Be aware of balanced transfer charges that can reduce your savings.

Make a budget

Knowing what and when you are borrowing can help you make timely payments and avoid overuse. In addition to your monthly costs, budget for extra items you may need to purchase. You don’t earn interest and you don’t risk getting into debt because it can help you get your spending on track.