Tips to Avoid Paying Extra Interest on

Credit Purchase

If you’re using a credit card to buy, you can avoid paying extra interest by following these tips:

Pay off the cards in the order of their interest rates

One of the biggest mistakes people make when paying off their credit cards is not prioritizing

payments. If you're trying to pay off your debt, it's important that you begin by paying off the

card with the lowest interest rate first. This will allow the money that would have gone towards

high-interest debt (which could cost thousands in interest over time) to go towards other bills or

savings instead.

If a card has an annual percentage rate (APR) of 18%, for example, and another has an APR of

20%, it makes sense to focus on paying off that first one before moving on because it will save

you more money in interest over time.

Initiate multiple payments every month

It's a good idea to make more than required, but don't worry about overspending. As long as

you're not in debt, the extra money will be used to pay off your credit card balance faster.

To avoid paying unnecessary interest on your purchases, the best thing to do is make multiple

monthly payments. The easiest way is by setting up automatic payments from a checking or

savings account and having them withdrawn on the due date of each billing cycle so that there

are no surprises when it comes time for payment.

Buy low-interest rate cards for spending

While credit cards can be a convenient and useful tool, it's important to keep your finances in

check. If you're struggling to pay off your balance every month, here are some steps that can


● Avoid using credit cards for everyday purchases. Instead of paying with a card, use cash

or debit instead so you'll be more aware of how much money you're spending on each


● Buy low-interest rate cards for spending only. If you do have a splurge item or purchase

planned, consider getting an interest-free card for that purchase only — like the Amazon

Prime Rewards Visa Signature Card — and pay the entire balance off before any

interest starts building up on this card's 19.99% purchase APR.

Don't put medical expenses on credit card

Stop if you're considering putting medical expenses on your credit card. That's because medical

expenses are not tax-deductible, and they're not covered by health insurance. To make matters

worse, they are also not covered by credit cards. So if you end up paying interest on your

balance (and most people do), the money will be going towards interest instead of actual

medical bills.

Consolidate your debt by using a 0% balance transfer


According to professionals at SoFi, “a card with a 0% balance transfer or similar 0% credit card

offer could be an enticing option for those who want to make major headway in paying down a

credit card balance.”

If you have a high-interest credit card, consider transferring your balance to a card with a 0%

introductory APR. This will allow you to avoid paying interest on your current debt and make

extra payments toward it during the introductory period.

Here’s how to avoid paying interest on credit card using a card with an introductory 0% APR.

● Transfer your existing balance to a new card with an introductory 0% APR offer (for

example, 12 months).

● Make sure that this new card has no annual fee or foreign transaction fees. If the new

card charges an annual fee, call them and ask if they'll waive it for this first year—they

may give it to you even if they usually don't waive annual fees!

● Pay off as much of the transferred debt as possible before the 0% rate ends by making

additional monthly payments on top of what's required each month (this is called "paying


Credit cards can be an excellent way to manage your finances, but they also come with many

potential pitfalls. So talk to an expert at reputed platforms like SoFi before getting one.

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