How to avoid interest on your credit card

You can easily lower interest on your credit card — or eliminate it altogether — when you follow these tips: 

Pay in full

Eliminate interest when you pay your monthly statement in full. Not only can a late payments add interest, but it can affect your credit score, too. When you pay off your entire balance each month, you skip the interest typically attached to purchases.

Space out your purchases

There's nothing like the excitement of a new card, but hold off on that shopping spree. If you take time between purchases, it is far easier to pay what you owe. If you have a big purchase to make, save it for a low-interest credit card so you don't stack up the interest on that big-ticket item. 

Sign up for a new card

If you have good credit to get a new credit card, consider signing up for a card with a promotional APR. A card issuer, for example, could offer you an introductory 0% APR lasting more than a year, saving you money in the meantime. There are also buy now, pay later (BNPL) plans such as Affirm that allow you to make your purchases and then pay them off in smaller payments, making those larger purchases a bit more attainable. 

Consider a balance transfer credit card

A balance transfer credit card allows you to take all of your debt and move it to one card with a single bill. You could also use this opportunity to select a new credit card with no interest for a certain period, giving you more time to pay off your debts. Just watch out for balance transfer fees which can cut into your savings.

Make a budget

Knowing what you owe — and when — can help ensure that you make timely payments and that you don't overspend. Make a budget showing your monthly expenses, plus any extra items you may need to buy. It can help you stay on track with your spending, so you don't accrue interest and risk falling into debt.