Key Takeaways
The first rule of using credit cards: Avoid credit card interest.
(Or at least it should be.)
The average credit card interest rate has climbed to20.75%according to Bankrate, CNET’s sister site.
This is especially true if you pay only theminimum payment, continue making purchases or both.
Here’s how you’re able to avoid credit card interest now and in the future.
There are also several types of credit cards that let youavoid accruing interestfor a limited time.
Here’s how to maximize the benefits of credit cards while avoiding credit card interest altogether.
Start by making amonthly budgetor spending plan, then only charge planned purchases.
These offers provide consumers with some extra time to perhaps pay off a large purchase or unexpected expenses.
However,credit card cash advancesrequire an upfront fee, typically 5% to 10%.
Credit card cash advance APRs are also typically higher than the regular APR you’ll pay for purchases.
What’s the best way to avoid this?
Don’t use your credit card for a cash advance.
However, avoiding debt can be worth missing out on credit card benefits.
Having anemergency fundcan help you cover these expenses while avoiding credit card interest.
The overall impact of interest decreases when youpay more than your credit card’s minimum payment.
