How are Capital One interest charges calculated?

To avoid interest on credit cards, either pay the full statement balance by the due date every billing period or maintain a $0 balance by not charging any purchases to your credit card account. There is no revolving balance for a credit card’s interest rate to apply to in either case.… read full answer

More specifically, it’s impossible to owe interest without buying anything, and even a card with no balance reports positive information to the credit bureaus every month. Alternatively, making purchases and paying off the full balance listed on the monthly statement by the due date avoids interest thanks to the so-called “grace period” that most cards have. That basically means people who consistently pay their bill in full get an opportunity to do so before interest applies to their purchases.

But interest is most often a concern when you need to buy something now but won’t have all the money for a while. And in that case, the best way to avoid interest on a credit card is to get a card with a 0% introductory APR. Keep reading below to learn more about that option and the rest of the best ways to avoid credit card interest charges.

Here's how to avoid interest on credit cards:

1. Don’t make purchases, balance transfers or cash advances. Not using your card guarantees no interest, as long as you pay any annual or monthly fees it may charge. And the issuer will still report positive information to the credit bureaus each month.
2. Schedule monthly payments for your full statement balance. As long as you always pay the full balance listed on your monthly statement by the due date, the issuer won’t charge interest. Set up automatic monthly payments from a bank account for the full balance so you don’t need to remember. Just make sure your bank account balance exceeds the amount you charge.
3. Use a 0% credit card, and get out of debt before the regular APR kicks in. Lots of credit cards offer 0% intro rates on purchases, balance transfers or both for a certain number of months after account opening. Your balance won’t accrue interest during that period if you make the minimum payment each month. After the 0% rate expires, the regular interest rate kicks in.

It’s not too hard to avoid interest on a credit card if you know what to do. If you’re in the market for a new card and need to finance a big purchase, getting a 0% card is the best option. If you already have debt, you can move the balance to a 0% balance transfer card and pay it off before the intro period expires. WalletHub’s credit card payoff calculator can help you.

The Capital One grace period lasts at least 25 days. It is the time between the close of a billing cycle and when your bill is due. You won’t be charged interest during the grace period if you pay your balance in full by the due date every month. Grace periods aren’t permanent, though. You will lose your Capital One grace period if you don’t pay your bill in full one month. As a result, purchases will begin to accrue interest right away. Plus, you’ll have to pay in full two months in a row to get the grace period back.… read full answer

Those are the basics of the grace period, but there are a few more relevant details to be aware of.

Here’s what you should know about the Capital One grace period:

• The grace period for Capital One cards is at least 25 days. It allows you to avoid interest on your monthly balance between the end of your billing period and your due date.
• If you lose your grace period, you can get it back by paying your full balance on time for two consecutive months.
• The grace period doesn’t apply to cash advances or balance transfers. Interest starts accruing as soon as you get a cash advance. It starts accruing right away on balance transfers too, unless you have a 0% APR introductory period.

The Capital One grace period is a useful perk that saves you money on interest. So, it’s yet another reason to always pay your bill in full and on time. And setting up automatic monthly payments from a bank account is a great way to make sure that happens.