SESKStuff Everyone Should Know
SESK: Stuff Everyone Should Know · sesk.info/card-grace-period

How do you avoid interest on ordinary credit card purchases?

Pay the full balance by the due date, if the card has a grace period.

  1. Pay only the minimum
  2. Carry a small balance on purpose
  3. Pay the full balance by the due date ✔

Why: CFPB says if your card has a grace period, you can avoid interest on purchases by paying the balance in full by the due date. A leftover balance can start interest.

Huh, didn't know that: Many issuers figure interest daily from your average daily balance.

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Sources

  1. CFPB: How credit card interest is calculated https://www.consumerfinance.gov/ask-cfpb/how-does-my-credit-card-company-calculate-the-amount-of-interest-i-owe-en-51/

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