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Best Tips to Avoid Credit Card Interest

Here Are the Best Tips to Avoid Credit Card Interest that you didn’t know!

Introduction

 

Here Are the Best Tips to Avoid Credit Card Interest that you didn’t know! Credit card interest is always a big matter for many people. Are you a person who is suffering from an increasing credit card interest? How does an interest generate for your credit card and what are the steps that you can take against this problem?

In addition to that, there will generate interest if you do not pay the balance in full according to a certain date. After that, it will create an interest expense for you while the debt is growing. If you do not pay this interest, it will be more difficult for you to repay the balance one day!
Here, we are going to help you by mentioning the way to keep the credit card costs at a lower rate and the methods to control the debt.

How to avoid card interest?

  • Get a 0% purchase credit card

They add a purchase interest if you do not settle those expenses due to date and the interest will be between from 9% to 28% according to the type of the card.
So, it will be better to take a card that has a 0% promotional rate if you are willing to make big purchases while you cannot pay in full. Otherwise, you will be in big trouble with a big interest!
As well as that, these benefits only last for 6 or 18 months as the introductory period. After this period, you have to work with the standard interest rates that impact to the debts and future purchases.
  • Maximize the grace period

After a close of each billing cycle, you can enjoy interest-free days! For instance, they offer some days between 21 to 25 but it will be based on several factors.
Repay the balance before the statement due date
This is the simplest way to avoid this matter, and if you follow this method, the interest won’t increase. On the other hand, you may forget or miss to settle this payment. So, there are several actions available to you.
Furthermore, you can use reminders in your phone or calendar as you frequently pay attention to those things. Setting up automatic payments that transfer your bank account money to the credit card is another option here.
If it is difficult for you to collect enough money on time, you can ask the bank to move the statement due date that is closer to the day you receive your salary.
  • Pay attention for a 0% balance transfer credit card

What happens here is, you receive the opportunity to transfer your debt from one certain card to another. With the introductory period is in place, you can pay your debt without any matter of interest.  This facility will last from 6 to 21 months.
Sometimes, you may need to pay a one-off balance as the transfer fee.
  • Avoid cash advances

Are you a person who is using the card to make a cash advance? If the answer is ‘yes’, we recommend you to, limit it as it causes to increase the interest. Usually, they use an interest rate between 26% to 28% but it will be depending on the type of the card.
Moreover, they also charge 3% or 5% from the transaction amount as the cash advance fee and the minimum charge is from $5 to $ 15. This is a different concept from normal purchases. This transaction fee applies at the same moment that you created it.
Cash advance transactions consist of money transfers, ATM withdrawals, and gambling transactions.
  • Take out a personal loan

Taking a personal loan instead of using a credit card is another perfect option to avoid higher interest rates. Also, it will save money more than the card can do for you. Especially, you can take this benefit if there is a favorable credit score for you.
In addition to that, you can enjoy a lower interest rate compared to cards.
  • Take home equity loan or a line of credit

Do you know the difference between home equity loans and a line of credit? Home equity loans offer only a fixed interest rate and a line of credit charges a variable rate.
Furthermore, it has a lower amount than the APR on the credit card. So, this is a great chance as you can pay a less amount as the interest here.
On the other hand, they won’t provide this service if you did not pay off the debt.

Final thought

Usually, credit cards charge interest if the owner does not pay the full payment on the due date. The increasing interest has become a big matter for many people so that we have mentioned some tips that you can follow as a solution.
In conclusion, it is better to compare these strategies and take the best option. Thank you for being with Refoverload!

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