It might make sense to get a credit card with a high interest rate, rather than a low one, if you plan to pay your bill in full every month. If that’s the case, you shouldn’t care whether your card’s interest rate is high or low because you won’t carry a balance for it to apply to.
So if the card with the best combination of rewards, fees and benefits for your needs happens to have a high APR, that shouldn’t change anything if there’s no chance you’ll be assessed interest charges anyway. And that’s important because most of the best rewards credit cards have pretty high regular APRs.
But you shouldn’t go seek out a high-interest credit card, either. All else being equal, go with the lower APR.
I totally agree. Give me a great opening bonus and I’ll be your friend. I never cancel a card I just keep getting new ones. The only ones I use are the ones that have a 5% reward at the time. I just got notice of a 5% off on restaurants until the end f the year. There is a cap and you can be sure I’ll charge up to the max of the rebate. I just had a notice from a card issuer that if I didn't use the card they’d cancel it. I charged a couple,e hundred dollars on the card.
To avoid interest on a credit card, 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.
How to Avoid Interest on Credit Cards:
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.
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.
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.
When it comes to the best way to pay off multiple credit cards, I'd avise to pay off cards that carry the highest interest rate first.
The sooner you are out from under a card with a high rate, the better it is for your bottom line. However, it could be that the card with the highest rate may also have a balance that you cannot pay off all at once.… read full answer
Use debt snowball strategy, pick the card that has lowest balance and highest interest rate and pay it off first (it will be easier and faster to pay off smaller debts rather than larger), pay minimum payments on all other accounts and devote all available cash to the small one. Once you don't with the small, take all of this available funds and apply towards second card with the smallest balance, and so on...… read full answer
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