How to Avoid Credit Card Interest

1. Pay the Statement Balance in Full

The simplest way to avoid credit card interest is to pay your full statement balance by the due date each month. Paying only the minimum can cause interest charges to build quickly.

2. Know the Difference Between Statement Balance and Current Balance

Your statement balance is the amount owed from your last billing cycle. Your current balance may include newer charges. Paying the statement balance by the due date is usually the key to avoiding interest.

3. Use 0% APR Offers With a Payoff Plan

A 0% APR card can help you avoid interest temporarily, but only if you pay off the balance before the promotional period ends.

4. Avoid Cash Advances

Cash advances often begin charging interest immediately and may include extra fees. They are usually not a good fit for people trying to avoid interest.

5. Set Payment Reminders

Late payments can trigger fees, interest charges, and possible penalty APRs. Set reminders or autopay to avoid missing due dates.