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.
How can I avoid paying interest on my credit card?
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.
When should I pay 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 is interest charged on a credit card?
Credit cards charge interest when you don’t pay off your full balance by the due date each month. When you carry, or revolve, a credit card balance from month to month, interest is charged on a daily basis, and it affects both your existing balance and any new purchases that post to your account.
What is purchase interest charge?
Sometimes also known as a “finance charge,” a purchase interest charge is simply interest you pay on your credit card balance for purchases you made but didn’t pay in full.